Mixed-Use

Project Description:

The Summit at Fritz Farm opened in 2017 and is one of the region’s premier shopping and dining destinations. It includes nearly 350,000 square feet of retail and restaurant space, hosting over 60 street-level shops and approximately 20 high-end and casual dining options, featuring chef-inspired, local and regional flavors. It is also home to The Origin Lexington Hotel, over 300 luxury apartments, and approximately 45,000 square feet of Class A office space, with additional amenities planned.

This $200+ million multi-phase project is located on approximately 60 acres at the corner of Nicholasville Road and Man O’ War Boulevard in Lexington KY. Prior to development, the project site lacked utilities, walkways, public parking, and the sanitary and storm sewer infrastructure necessary to comply with a community-wide court decree mandating corrective action by the local government to alleviate the significant storm water runoff from adjacent properties on Nicholasville Road. The cost of these and other necessary public infrastructure improvements was a significant hurdle for the project to move forward.

CE Role:

Since 2014, CE has served as the TIF compliance consultant to the project owner/developer, Centennial (formerly named Bayer Properties). That year, the project was awarded a state Mixed-Use TIF for up to $24.1 million and, under terms of the development agreement with Lexington Fayette Urban County Government ("LFUCG"), the owner/developer is eligible to receive up to a total of $31.5 million in combined local and state TIF tax rebates over a 20-year period to repay the costs of certain public infrastructure improvements.

In 2016, when CE was a registered Municipal Advisor, we served as financial advisor to the owner/developer and structured the first ever unenhanced, tax-exempt TIF bonds to be publicly offered in the Commonwealth of Kentucky. With the Kentucky Bond Development Corporation ("KBDC") acting as a conduit issuer, the publicly offered $15.3 million Series 2016A (senior series) and privately placed $16.2 million Series 2016B (subordinate series) Tax Increment Revenue Bonds were issued to leverage the future local and state tax rebates under the TIF into upfront money available to pay for a significant portion of the public infrastructure improvements required at the property.