Rick Kelley
From Sunshine Review
Contents |
Rick Kelley is the Play Ball! ’05 Committee Chairman and owner of Mariah's Restaurant and other properties in downtown Bowling Green. He is one of the leading Committee Chairs for Bowling Green TIF District.
[edit] Bowling Green TIF District
This is a development area and tax increment financing (TIF) district for the redevelopment of an approximately 40-acre site in downtown Bowling Green in cooperation with Warren County and Western Kentucky University with Alliance Corporation acting as the master developer. It involves a comprehensive mixed use economic redevelopment area comprised of residential, office, hotel, restaurants and other commercial components, with certain public elements that include a baseball stadium, parking garage, a performing arts center and other public infrastructure improvements.
[edit] Self interest in TIF
Rick Kelley is one of the principles driving the development of the TIF district. Kelley encourage that a "Signature TIF", the highest level of TIF which would generate $200 million in taxpayers dollars for the project.[1] The Bowling Green Daily News then exposed that Kelley owned Mariah's restaurant next to the proposed development, land within the development; is a sub developer of the Alliance Corporation and planning for development of a new restaurant with in the area.[2]
[edit] Financing for the TIF district
Below is a chronological recording of Kelley's stance on the funding for the TIF district.
[edit] April 26, 2007
Mr. Kelley requested a Memorandum of Understanding (MOU) between the City and the project Master Developer (Alliance Corporation) that would provide a minimum of 90% of the revenues generated from an established TIF district to help finance the project. He also requested that the MOU provide for the sale of City owned property between State and College Streets and 7th and 8th Avenues for the purchase price paid, as well as property purchased for the SKyPAC development with SKyPAC’s approval.
In addition, Mr. Kelley explained that a lease for the use of 601 State Street as part of the development plan would provide $100,000 per year to the Downtown Redevelopment Authority (DRA). He encouraged acceptance of the financial proposal prepared by Ross, Sinclaire & Associates. [3]
| Project | Financing |
|---|---|
| MOU between the city and the Alliance Corporation This would provide for:
| 90 % of TIF funding |
| 601 State Street | $100,000 annually to DRA |
[edit] June 12, 2007
Rick Kelley shared information regarding the downtown redevelopment proposal, including the proposed tax increment financing (TIF) district, estimated capital expenditures of $251,364,950 to be shared between public and private investment, financing plan for issuance of 30-year bonds, anticipated project benefits, and estimated TIF revenues from participation by the State, City and County to be generated over the life of the bonds.
Mr. Kelley also noted that 20% of the TIF funds would be retained by the City and County and that a proposed lease of 601 State Street would provide $100,000 to the Downtown Redevelopment Authority, Inc. (DRA). He requested that the City create the TIF district, pledge 80% of the incremental real property and occupational license fee revenues, and authorize the sale of City owned property known as the Otto Office lot, Kirtley building and Center Street (SKyPAC) properties. He further requested that the City move forward with the required steps in making application to the TIF Commission.
Mr. Kelley also stated that commitments would be sought from Warren County to issue the project bonds and pledge 80% of its incremental real property tax revenues, and from Western Kentucky University (WKU) to lease 200 parking spaces in a proposed downtown garage for $250,000 a year for fifteen (15) years and at $1 per year for an additional fifteen (15) years, as well as including the Van Meter Hall renovation and North Campus parking lot construction in the TIF district. [4]
[edit] Table of project financing
| Project | Expenditure | Financing | Tax time line |
|---|---|---|---|
| Downtown redevelopment | 251,364,950 | Private and public financing | - |
| City and County investment | - | 20% of TIF funding | 30 years |
| Leasing of 601 State Street to DRA | - | $100,000 | annually |
| Otto Office lot, Kirtley building and Center Street (SKyPAC) properties along with renovation of Van Meter Hall and North Campus parking lot construction | - | 80% of TIF funding | 30 years |
| Western Kentucky University (WKU) to lease 200 parking spaces in a proposed downtown garage | - | $250,000 | $250,000 a year for fifteen (15) years and at $1 per year for an additional fifteen (15) years |
[edit] July 17, 2007
Kelley pitches plan to skeptics.
Kelley, who owns Mariah's restaurant next to the proposed development...said that about 800 permanent new jobs would be generated in the area, plus construction jobs for the next three to five years.
Jerry Johnson asked what would happen to the county's credit if the project failed. Nothing, Kelley said: The worst that would happen is that the city would be stuck with unfinished buildings, while financial liability would be borne by the investors and bondholders, not local governments and taxpayers.
Jim Duffer of Bowling Green asked to speak, and pointed out that in addition to Mariah's, Kelley owns four pieces of property within the TIF district. Kelley said he will indeed invest in a “small piece” of the project. [5]
