Major changes ahead for downtown Frankfort as state looks to sell prime property
The state is selling nearly 12 acres of prime real estate in downtown Frankfort for private development.
The Kentucky Finance and Administration Cabinet said in a news release that it no longer needs the property near the Capital city’s historic district.
Under state guidelines, the buyer must provide a conceptual plan for a mixed-use development project that blends residential, commercial, retail, parking, cultural, institutional or entertainment uses.
The sale involves two parcels of land: blocks B and C of the Capital Plaza development area and acreage beneath the Capital Plaza Hotel and the Frankfort YMCA that now house parking garages.
The property is being sold all together, said Finance spokeswoman Pamela Trautner.
Block B is 7.6 acres, bound by Wilkinson, Clinton, St. Clair and Mero streets. Most of is where the Frankfort Convention Center formerly sat. Block C is 4.12 acres, bound by Wilkinson, Clinton, federal property and Broadway.
The Finance Cabinet has posted a request-for-bid proposal online to sell the property.
The offer comes 15 months after the state imploded the 26-story Capital Plaza Tower and demolished the convention center.
“From day one, when we made the decision to take down the Capital Plaza Tower and build a new state-of-the art office building, my goal was to return as much public property as possible back to the private sector and onto the tax rolls of Frankfort and Franklin County,” said Finance Secretary William M. Landrum III.
In the early 1970s, the property was involved in an urban renewal project. The state built the tower, convention center and several stores called Fountain Place Shoppes. Because of the buildings’ deteriorating conditions, they were razed in early 2018 with little public opposition. The state has built a new 385,000-square-foot office building north of where the tower was located in the 500 block of Mero Street.
The new state office building is scheduled to open this fall. No specific date has been set, said Trautner.
Frankfort Mayor William May said he is encouraged by the state’s action.
“It has been my vision to have a mixed-use development that includes residential, commercial, retail and other appropriate uses that will blend with what I hope can be an extension of our downtown arts and entertainment district,” said May. “Having this property sold to a private developer will put it on our tax rolls and bring in needed tax revenue not only for the city but for Frankfort Independent Schools.”
May said new jobs created by the redevelopment effort will be an added benefit.
“This new development is a continuation of the growth Frankfort is experiencing and will transform our community in a positive way,” he said.
All proposals must provide information on the developers’ experience with similar projects and their financial status. They also must meet with the city’s planning and development department to review the project’s compatibility with the city’s urban mixed-use district zoning designation.
A site visit for interested buyers is scheduled for Aug. 19. All required documentation for the state is due Sept. 25 and public sealed bids will be opened Oct. 16.
A team made up of finance cabinet representatives and one employee each from Franklin County and the city will review all submissions for compliance prior to the bid opening.
This story was originally published August 7, 2019 at 2:36 PM.