A state board gave approval last week to the next step in a redevelopment project for The Red Mile racetrack in Lexington.
The Kentucky Economic Development Finance Authority in Frankfort gave the nod to allow state workers to create criteria for a consultant to consider in assessing whether the redevelopment is feasible and appropriate for what's called tax-increment financing.
The idea behind TIF projects is for governments to invest in improving infrastructure and then pay for those improvements using new tax revenue, which developments are expected to generate when the projects are completed and areas are revitalized.
In the case of the proposed $186.9 million Red Mile redevelopment, the developer is applying for $54 million in TIF funding.
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The project would include a remodeled 1,900-seat grandstand, a trackside hotel with 200 rooms, 277,000 square feet of retail and restaurant space, 24,000 square feet of office space, and 295,000 square feet of apartments spread throughout nine buildings in the development, according to a state description.
The project also calls for more parking, including three parking structures.
If the state determines the project is feasible, officials will then discuss whether to direct state tax money toward the projects.