Though the Section 108 funding mechanism was created in the 1970s, the Commonwealth of Kentucky has never previously applied. The program is meant to help create low- and moderate-income jobs, and state-level applicants have to demonstrate a statewide benefit (as opposed to a merely citywide benefit). Workers from counties surrounding Louisville will be targeted for construction and permanent jobs at the project, which includes hotel, office, and condo components, as well as an art center.

Brian Sullivan, a spokesman for HUD, said that since the application had not yet been filed, he could not comment on the merits of the proposal. He indicated, however, that the backing of the Governor carried significant weight with the department. The development team plans to file their application in early July. The review process could take approximately two months.

Since significant foundation and site work, including infrastructure relocation, had already been completed prior to the downturn, preserving the design of the building envelope was a priority. The structure is composed of a three-legged base—two occupied legs and one for support—topped by a platform containing the art center, which the architects call “the island.” Above the art center rise two residential towers and one office tower. The developers have decided to remove 117 condominiums in favor of a 190-room hotel, the second in the project, to be located in one of the legs. Ninety-five condominiums remain.

“The individual legs have always been profit machines to support the contemporary art center,” said REX principal Joshua Prince-Ramus. “Having all the hotel rooms below the island actually benefits the project programmatically. Condos have always been the biggest unknown in terms of financing.”

Prince-Ramus added, “The project has always faced hurdles, but this wasn’t something anyone wanted to let go.”