FRANKFORT, Ky. – The Kentucky Tourism Development Finance Authority has approved incentives for a Covington hotel project and two bourbon-related projects in Louisville and Woodford County.
The approved projects are:
- 638 Madison LLC, developer of Hotel Covington, a boutique hotel being developed in the former Covington city hall. The hotel will have 114 rooms and a restaurant. Developers plan to spend $20.3 million and can qualify for up to $5.08 million in tax rebates over a 10 year period.
- The Jim Beam Urban Stillhouse, a distillery experience located on Fourth Street Live! In downtown Louisville. The development is expected to cost $5.2 million and will qualify for up to $1.18 million in tax rebates over a 10-year period.
- Peristyle LLC, a renovation of the former Old Taylor Distillery in Woodford County. The distillery, built in 1887, will be refurbished, and visitors will be able to tour a craft distilling operation. There will also be space for special events. The expenditure related to tourism development is $6.79 million, which results in a tax rebate of up to $1.71 million over 10 years.
Reports on the three applications found that they met the requirements necessary to receive incentives. This includes meeting a minimum expenditure requirement, being open more than 100 days a year, attracting at least 25 percent of visitors from outside the state by its fourth year of operation and having a positive net economic impact on the Kentucky economy.
The authority considers applications under the Kentucky Tourism Development Act, which allows eligible tourism attractions a rebate of sales tax up to 25 percent of project capital costs.