Waste of the Day: Louisville Taxpayers Pay Nearly $600,000 For Empty Building’s Maintenance, Security

Topline: The city of Louisville, Kentucky closed its Urban Government Center building in 2016 with plans to sell the property to a housing developer. The space would be renovated entirely with private funding.

Louisville must guard an empty building

That agreement fell through. So did the next one. The current plan still has not been finalized. Meanwhile, the 10-acre property is collecting dust, and taxpayers have been forced to spend at least $588,000 since 2017 for maintenance and security at the vacant building.

Key facts: Records obtained by WDRB News show that taxpayers have been billed for lawn mowing, fence repair and more at the empty building. In the last two years, 86% of the costs have been for security services.

Trained guards at an unused building might seem frivolous, but they’re needed because looters sneak into the building to steal and sell scrap metal. Thirteen arrests have been made at the site since 2022.

Cliff Hayden, who manages a hotel next door, told WDRB News that thieves have even entered his establishment to steal air conditioners. Another local resident said she watched a man trespass on the property with five pizzas and a bottle of soda in his hands.

Services at the building have likely cost even more than $588,000. WDRB News says the dollar figure doesn’t include spending after this January or any federal funds that may have been spent by the Louisville Metro Housing Authority.

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Trying to sell it

Background: The city purchased the Urban Government Center for $1.2 million in 1992 and plan to sell to a private real estate company for $1.7 million. Adjusted for inflation, that’s a $1 million loss.

But the sale is delayed because the buyers, Paristown Preservation Trust, want the city to approve a $20 million public subsidy to help fund the $249 million the Trust will spend to build houses in the area.

Paristown Preservation Trust is the third company to try and buy the property. Marian Group backed out in 2019 because it said the city was taking too long to get required land-use approvals. Underhill Associates’ deal was canceled in 2021 because the city thought Underhill’s private funding plan was shaky.

Supporting quote: Some Louisville residents support public subsidies for construction at the vacant building if it will finally speed up the process.

One neighbor told WLKY News, “I have not always been so lenient on this project … But at this point, this has taken so long, people think we live in a slum.”

Summary: Louisville’s empty Urban Government Center is a perfect example of bureaucratic waste. While officials take years to act on a plan, taxpayers are footing the bill.

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This article was originally published by RealClearInvestigations and made available via RealClearWire.