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Paducah expands South Side revitalization plan, outlines incentives and outreach
Summary
City staff proposed expanding a neighborhood revitalization area on the South Side to about 1,061 parcels, described incentive options including homeowner microgrants and gap‑funding for buyers, and set a timeline for public hearings and program rollout in May.
Director Carol Gault presented the City of Paducah’s expanded South Side revitalization plan on April 8, describing a phased approach that would enlarge the program area and add buyer incentives, gap‑funding options and community outreach.
The plan matters because the South Side covers roughly 3,600 parcels across eight neighborhoods and includes large concentrations of vacant lots and aging housing stock; staff said the expanded first phase targets about 1,061 parcels (83 city blocks) where they counted roughly 405 vacant parcels — about a 38% vacancy rate — and where they expect to focus incentives and signage in the near term.
Gault said the city is building on earlier efforts in Lower Town and Fountain Avenue and will scale the South Side program in phases rather than attempt a single, neighborhoodwide rollout. “We want to expand the program area and the incentive area in the next three months,” Gault said, adding that the planning commission public hearing is scheduled for May and the commission intends to return with ordinance readings in mid‑May and adoption in late May or June.
Staff outlined an incentive menu that includes two existing programs: a new‑construction and major‑rehab reimbursement grant (previously used on Fountain Avenue) and a home‑repair microgrant capped at $5,000 (50% match). Gault and staff also described new options for buyer‑focused gap funding: in one example a household buying a $250,000 house could receive a forgivable second mortgage (staff used a hypothetical $75,000) that would be forgiven progressively if the owner remains in the home for a multi‑year term (staff mentioned 10 years for a full forgiveness on the full example). The gap fund would be structured as a non‑performing second mortgage and is intended to address early appraisal and loan‑to‑value shortfalls developers and lenders cited during outreach.
Carol Gault noted that financing partners are already engaged. “We’ve met with CFSB and they plan to roll out their loan product May 1,” she said. Gault and other staff said Operation HOPE and local banks will provide counseling and underwriting support for households “on the cusp” of mortgage readiness and that the city will hold workshops and quarterly neighborhood meetings to increase participation.
Staff also reviewed results from an initial program area: roughly $2.8 million in estimated total project value has been leveraged to date, funded in part by about $59,000 in direct city incentives (one new home received the full award and several rehabs and microgrants have been completed or are underway). Staff estimated typical new‑build cost assumptions at $180,000 on average when projecting future leverage, and noted some projects and developer interest outside the original footprint representing an estimated $900,000 in additional planned investment.
To address resident concerns about rising property taxes and displacement, staff said they will include a property‑tax moratorium mechanism in the plan design to limit immediate tax increases for qualifying existing homeowners. Staff emphasized that decisions on exact forgiveness timelines, eligibility thresholds and sliding‑scale parameters will be refined with lender and realtor input and returned to the commission in draft ordinance language.
As part of outreach, staff showed a neighborhood logo and proposed signage for surplus parcels with a single phone line and a “This lot isn’t empty. It’s full of opportunity. Call 247” banner as a visual signal of activity. Staff said they will send required written notices to property owners in the program area (more than 1,000 notices expected) and host a kickoff event in May.
Mayor George P. Bray and several commissioners praised staff engagement and visibility in the neighborhood; Commissioner Thomas and Commissioner Henderson expressed support for the phased approach and for intensified resident communications.
Next steps: staff will finalize the plan text and supporting ordinances, provide commissioners a final draft approximately 48 hours before public release, hold a planning commission public hearing in May, bring ordinance introduction and repeal of the consolidated urban‑renewal/planning commission to the board in mid‑May and seek adoption on the board’s May meeting schedule.
