Sep 25 1997

Changes Planned for Falls Harbor Development

Rachael Kamuf

More changes may be ahead for the long-awaited FallsHarbor condominiums, including a 20-story tower instead of the midrises originally proposed and the possibility of a new partner coming on board in the $100 million development.

"We are still in the exploration stage," said FallsHarbor partner Rick Kremer.

Kremer said he and partners Bill Weyland and Lawrence Leis are negotiating with an out-of-town development firm, which he declined to identify, to join the FallsHarbor partnership.

He said the company is an experienced condominium developer and would bring "credibility" to the project, which was first proposed in 1989. The 58-acre site is east of the Great Lawn now under construction as part of the downtown riverfront redevelopment, and west of Beargrass Creek.

If an agreement is reached, Kremer said, a plan to raise $500,000 to $600,000 for the first phase of the project through the sale of multiple interests in a limited partnership would be discarded. "Frankly, it is easier this way."

Kremer, a principal in the Louis & Henry Group architectural firm, currently is tinkering with the FallsHarbor design, drawing up plans to replace eight- to 10-story buildings with a single skyscraper reaching up to 20 stories.

"Market studies show there is a demand. The higher up, the better the view. The view of downtown is incredible. We are trying to capitalize on that," he said.

Tri-level structures with six condominiums each would remain in the development plans, Kremer said. The exact number is still being explored. "Nothing has been settled yet," Kremer said, although he anticipates that construction on the first of the smaller buildings will be under way before summer ends.

March floods slowed marketing and put off some potential buyers. But spring weather has prompted new inquiries about the condominiums, and commitments have been made for more than 20 units, said partner Bill Weyland, who is also an architect.

"I didn't know how the flood would affect us. There was some concern," said Weyland, managing director of Design-Build Partners. "But we did not have a mass exodus of reservations. We have weathered it. Now we are back to the time of year when people think about living on the river."

Although the FallsHarbor site was flooded, Weyland and Kremer said the elevation of that section of the Ohio River shoreline and design elements would protect the development from floods of 100-year levels.

"The units are going to be so high that it would take a monstrous amount of water to reach them," Weyland said.

He acknowledged that parking areas would be under water and residents would have to leave their condominiums if flooding of the March proportions strikes again. But, he said, potential buyers are being cautioned and noted that all owners of riverfront property face such flood possibilities.

"That is going to be life on the river," he said.

People who have signed the agreements could withdraw them if they do not approve of any alterations in the design, Kremer said.

Weyland said he was "guardedly" optimistic that the project will get off the ground this summer. "We'll know more by the end of the month," he said.

The condominiums are being marketed by Paul Semonin Co. Of the units that have been pre-sold, Weyland said the average price was $180,000. Overall, they range in price from $100,000 to $350,000.

Weyland said interest is coming from two age groups: 40- to 60-year-old homeowners, and young professionals 25 to 35 years old.

The former have older children or are empty nesters who still maintain an active life but don't want to be constrained by the responsibilities of maintaining a house and lawn, Weyland said.

He said convenience to downtown jobs and the unique riverfront setting are the primary appeals to the younger prospects.

National City Bank of Kentucky is lending $10 million for the construction of FallsHarbor's first phase, including enlargement of the Municipal Boat Harbor. The marina will remain open to the public, but FallsHarbor residents will have priority in leasing boat slips.

A partnership that included Weyland, Kremer, Louis & Henry president Leis and the HFH Inc. development company was selected by the city in 1989 to develop the area. HFH, which has undergone a Chapter 11 bankruptcy reorganization, is no longer involved.

Work was to have begun two years later following the relocation of rail lines on the property.

Development was halted before it started with the discovery of relics of early Native Americans as the railroad tracks were removed. An archaeological review also revealed the presence of artifacts dating to European explorers who moved into the area in the 1700s.

The Indian burial grounds will remain protected. The other remnants of past settlers and travelers were deemed to be too common to warrant digging them up for preservation. Nonetheless, the FallsHarbor design was altered to prevent excavation in the area of the settler artifacts.

Another historic feature of the site -- the shell of the Padgett House -- is being preserved as well. The structure is to be restored and converted into a clubhouse for owners of boats moored at Municipal Harbor.