Paducah dissolves partnership with hotel developer

The City of Paducah has dissolved its partnership with the group that was to develop the boutique hotel for the City Block Project.

Weyland Ventures of Louisville was contracted to develop the hotel as a cornerstone of the project near the riverfront. Weyland told the Paducah Board of Commissioners back in October that they were delaying the start of construction after encountering issues with the foundation design coupled with other "construction market conditions" including rising interest rates, rising construction costs, and problems securing subcontractors. 

Paducah Mayor George Bray said, “A vibrant downtown Paducah remains our primary focus. The City and Weyland Ventures have mutually agreed to dissolve the partnership as both parties feel that this is the best course of action to move the City forward. The City protected itself with a clause in the development agreement to ensure we would remain in control of the land if the project did not come to fruition." Bray added, "The land closest to Broadway, with unimproved parking, never transferred to Weyland. That section of the block is currently under evaluation for an accelerated upgrade.”

Bray said that while the hotel was initially a big part of the Tax Increment Financing District, with private and public investment downtown, the $20 million minimum required by the state is expected to be reached on time by March of 2025.

Bray said that "there are multiple projects under consideration in downtown including a new hotel next to the convention center and the possible development of the former U.S. Bank building. All of which the city is working to support in any way possible."