World-class cities are often measured by the economic vitality of their downtown. A community that offers diversity both culturally and commercially. A thriving real estate market and desirable schools, in which people live and work in the central business district. A downtown area that buzzes with positive activity around the clock.

Over my lifetime, downtown Louisville has changed. In the 1980s and 90s, it was a hub of locally grown publicly traded and private companies. Since the turn of the 21st century, our downtown has focused upon amenities, such as the Bourbon Trail, museums, sports complexes, restaurants, convention centers, hotels and high-end residential living. Prior to the COVID-19 pandemic, Louisville was bustling with activity.

Today, the downtown and business landscape looks different. In Louisville and other similar-sized cities, many of those local publicly traded and private companies have been sold to, or merged with, out-of-town entities. Former local corporate headquarters are now rental office towers with high vacancy rates. And much of the employment base works remotely.

Cities across our country have been overtaken by corporate America. Louisville, many could argue, is one of them. In a corporate-dominated America, not only wealth, but our intellectual talent, appears to be constantly transferred to cities where headquarters have moved. And as our wealth and intellectual capital moves, so do philanthropic donations. Many jobs in larger cities have been, and will continue to be, filled by our children as they potentially look to live elsewhere.

Looking forward: Think big, be bold
What do we do? Many cities the size of Louisville are pursuing ideas to convert office towers to residential towers and forming cultural or entertainment districts. For Louisville, it is time to think big, bold and differently. Independence Bank supports the plan made by Mayor Greenberg, Louisville Downtown Partnership and Greater Louisville Inc. to enrich and revitalize our city. These plans include correcting crime, addressing the homeless population and creating a welcoming environment. The plan builds upon Louisville’s strengths like our medical district, a higher education and innovation district, the arts community, enhanced residential living, the Bourbon Trail and tourism.

One factor to consider is that the private sector is slowing investment in the downtown area. Can Louisville’s public sector increase investment and move workers to downtown? It was announced in April that the U.S. Army Corps of Engineers is moving their offices and hundreds of employees downtown. Perhaps, as Jefferson County Public Schools looks for a new administration building, they too can use vacant office space downtown.

What if Louisville really thought boldly? Perhaps, as an alternative to building new neighborhood high schools, consider creating an educational district for STEAM and magnet programs downtown. This could broaden our educational programs for talented high school students to develop biotech and artificial intelligence academies. The creation of these educational districts could utilize downtown towers. Imagine food services, gyms, libraries, auditoriums and meeting rooms filling the middle floors with plenty of area to space out students on upper and lower floors. Our brightest students with growth mindsets could be placed together — intellectually challenging each other on a daily basis.

For years, our city has discussed the loss of college graduates to other cities. In the 1980s and 90s, hundreds, if not thousands, of Kentucky college graduates were accustomed to coming to downtown Louisville for management training programs. To be where we want as a city, we need talented, educated and eager young professionals again.

Perhaps we can attract our college graduates back to Louisville and the Commonwealth by understanding how work has changed, particularly by creating professional jobs in Louisville that can be performed semi-remotely. Perhaps local and state lawmakers can create tax incentives to pay off or reduce student loans, if college students move here for a job and stay for many years.

In an effort to convert our buildings for other uses, we could create more incentive plans to focus on the private sector, encouraging work with the public sector to make some of these big capital investments. Investments in our downtown can help us, as a city, make significant strides.

Independence Bank believes in Louisville and our Commonwealth. In the short time our financial institution has been open in Louisville, we have made major investments, hired a talented team and continue to deploy capital to our clients so that their businesses may grow and prosper. Louisville’s economy is driven by the spending decisions we make in our neighborhoods and the cities in which we live. Positive change often begins with small — yet bold — ideas that grow.

Whatever we do, we must act now. Louisville is not alone in this challenge. Many second and third-tier cities are facing similar problems. Cities continue working on their plans and some have bold ideas. It is up to all of us to work together. To be successful, we must support our leaders and challenge them with ideas. Louisville made so many great strides to develop a wonderful cultural and living experience in our downtown prior to the pandemic. It is time to reinvigorate downtown Louisville.

Independence Bank has been helping small businesses grow for decades. Commitment to local and family-owned businesses is how we impact the economy and serve throughout Kentucky. As we navigate the changing economic landscape together, we invite you to stop in and see us today. You can contact us at 502-581-1776 or online at 1776bank.com.

Independence Bank is a regional community bank with 27 locations. One of the fastest growing banks in Kentucky and fourth largest, Independence Bank possesses the size and experience to serve the largest and most complex clients and offers trust and investment services and agricultural services. As a banking revolution for the people, by the people, central to Independence Bank’s mission is doing what is right and fair for customers, communities and employees.

Originally published
Louisville Business First
Louis Straub, President
June 1, 2024