FRANKFORT, Ky. (Aug. 26, 2021) – Today, Gov. Andy Beshear announced affordable-housing developer LDG Multifamily will expand its Louisville operations with an up to $10.75 million investment to purchase and renovate a new headquarters, creating 50 high-wage jobs for Kentucky residents.
“This relocation and expansion in Louisville by LDG Multifamily will create dozens of well-paying jobs for Kentucky residents, and I want to thank the company for this commitment to our state,” Gov. Beshear said. “LDG is doing great work providing affordable-housing opportunities for those who need it, while also creating quality jobs. Congratulations to the company and the Louisville community on this project.”
LDG is currently working to secure a new headquarters space within Jefferson County after outgrowing its existing headquarters on South 4th Street in Old Louisville. The larger space will house its existing staff and accommodate 50 additional employees over the next 10 years that consist mostly of professional and support roles critical to helping the company expand its operations. The average salary for these positions is $85,000. LDG leadership expects to move into its new headquarters by June 2022.
“Our decision to keep our headquarters in Louisville and expand our local workforce reflects our long-term goal of remaining a Louisville-based organization and our belief that leaders in this community are committed to developing innovative solutions to address the need for more affordable housing,” said Mark Lechner, co-founder and co-principal of LDG. “LDG Multifamily was founded in Louisville, and we are proud of our strong roots within this community. We appreciate the support Gov. Beshear, Mayor Fischer and the Commonwealth of Kentucky have provided and look forward to expanding our presence in our hometown.”
Lechner and Chris Dischinger founded LDG in 1994, based on their shared belief that everyone deserves a quality place to live, and have grown the company into a leading developer of affordable housing nationally. The company has created nearly 20,000 units of high-quality affordable housing for working families and active seniors in seven states, including almost 4,000 units in Kentucky. The work of LDG is supported by more than 150 employees in Louisville, Austin, Nashville and Atlanta.
Louisville Mayor Greg Fischer noted the important work LDG does to help ensure everyone has a quality and safe place to live.
“The need for more affordable housing is great both in Louisville and across the country,” Mayor Fischer said. “We are happy to be the home of LDG Multifamily, which focuses on putting people first and helping to fill the large gap in affordable housing at home and nationwide.”
LDG’s investment and planned job creation adds to recent economic momentum in the commonwealth, as the state builds back stronger following the effects of the pandemic.
Last month, thanks to strong fiscal management by the Beshear administration, the state budget office reported the commonwealth ended the 2021 fiscal year with a general fund surplus of over $1.1 billion – the highest ever in the commonwealth – and a 10.9% increase in general fund receipts to $12.8 billion.
Year-to-date, private-sector new-location and expansion announcements include $2.65 billion in total planned investment and the creation of 5,800-plus full-time jobs across the coming years. Through July, Kentucky’s average incentivized hourly wage is $23.47 before benefits, a 6.2% increase over the previous year.
In May, Moody’s Analytics published a positive economic outlook for Kentucky, noting mass vaccination as the driving force behind a sustained recovery in consumer services. The state’s recovery, Moody’s said, benefited from earlier reopening efforts and increased demand for manufactured goods over services. The report also found Kentucky’s manufacturing industry outperformed the nation’s since the national downturn last year.
Fitch Ratings in May improved the state’s financial outlook to stable, reflecting the commonwealth’s solid economic recovery. The state’s April sales tax receipts set an all-time monthly record at $486.5 million, as did vehicle usage tax receipts at over $64 million.
In March, Site Selection magazine’s annual Governor’s Cup rankings for 2020 positioned Kentucky atop the South Central region, and third nationally, for qualifying projects per capita. The commonwealth also placed seventh overall in total projects, the highest of any state with a population under 5 million. Site Selection also recently placed Kentucky in a tie for fifth in its 2021 Prosperity Cup rankings, positioning the state among the national leaders for business climate.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) today preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $1 million in tax incentives based on the company’s investment of $10.75 million and annual targets of:
- Creation and maintenance of 50 Kentucky-resident, full-time jobs across 10 years; and
- Paying an average hourly wage of $49 including benefits across those jobs.
By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.
In addition, LDG can receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, companies can receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives.
For more information on LDG Multifamily, visit LDGDevelopment.com.
A detailed community profile for Jefferson County can be viewed here.
Information on Kentucky’s economic development efforts and programs is available at www.CED.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov and LinkedIn.
Read about other key updates, actions and information from Gov. Beshear and his administration at governor.ky.gov, kycovid19.ky.gov and the Governor’s official social media accounts Facebook, Twitter and YouTube.