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Unease at Kentucky Project Mirrors Construction Industry’s Fears | Unease at Kentucky Project Mirrors Construction Industry’s Fears |
(2 months later) | |
LOUISVILLE, Ky. — Until the coronavirus pandemic, Gill Holland spent six years and $35 million constructing new residences and renovating 19th- and 20th-century warehouses in Portland, a historic neighborhood on the Ohio River that is Louisville’s oldest and one of its poorest. | LOUISVILLE, Ky. — Until the coronavirus pandemic, Gill Holland spent six years and $35 million constructing new residences and renovating 19th- and 20th-century warehouses in Portland, a historic neighborhood on the Ohio River that is Louisville’s oldest and one of its poorest. |
Mr. Holland’s Portland Investment Initiative had bought more than 60 properties and filled them with businesses and residents new to the racially diverse neighborhood, where roughly 10,000 people live. | Mr. Holland’s Portland Investment Initiative had bought more than 60 properties and filled them with businesses and residents new to the racially diverse neighborhood, where roughly 10,000 people live. |
The project, the largest real estate investment in Portland in at least a century, is awakening civic energy that has been dormant for decades. | The project, the largest real estate investment in Portland in at least a century, is awakening civic energy that has been dormant for decades. |
But its momentum is threatened by the coronavirus outbreak. Gov. Andy Beshear closed sit-down service in Kentucky restaurants and bars on March 16, and issued a separate closure order for other businesses nine days later. | But its momentum is threatened by the coronavirus outbreak. Gov. Andy Beshear closed sit-down service in Kentucky restaurants and bars on March 16, and issued a separate closure order for other businesses nine days later. |
Store and restaurant owners whom Mr. Holland attracted to Portland said they were nervous their businesses might not survive. As a fog of economic insecurity settles over the project, Mr. Holland is confronting the same financial impediments and social anxiety challenging real estate developers across the country. | Store and restaurant owners whom Mr. Holland attracted to Portland said they were nervous their businesses might not survive. As a fog of economic insecurity settles over the project, Mr. Holland is confronting the same financial impediments and social anxiety challenging real estate developers across the country. |
Nearly 40 percent of construction projects have been suspended or canceled, according to a national survey by the Associated General Contractors of America, an industry trade group. Thousands of industry workers have been laid off. | Nearly 40 percent of construction projects have been suspended or canceled, according to a national survey by the Associated General Contractors of America, an industry trade group. Thousands of industry workers have been laid off. |
In Louisville, Mr. Holland has renovated 241,000 square feet of empty brick warehouses, most built in the 19th century, for commercial space. Big tenants include the University of Louisville’s Archaeology Laboratory and master of fine arts program, and a Mercedes-Benz auto technician training center. More than a dozen smaller businesses have settled into renovated warehouses, including the headquarters for Heine Brothers’ Coffee, a locally owned chain. | In Louisville, Mr. Holland has renovated 241,000 square feet of empty brick warehouses, most built in the 19th century, for commercial space. Big tenants include the University of Louisville’s Archaeology Laboratory and master of fine arts program, and a Mercedes-Benz auto technician training center. More than a dozen smaller businesses have settled into renovated warehouses, including the headquarters for Heine Brothers’ Coffee, a locally owned chain. |
Farm to Fork, a popular cafe and catering business, operates in a renovated firehouse built in 1903. Before the closure order, the company employed nine people; it now operates with two employees selling meals delivered directly to customers. | Farm to Fork, a popular cafe and catering business, operates in a renovated firehouse built in 1903. Before the closure order, the company employed nine people; it now operates with two employees selling meals delivered directly to customers. |
The favorable lease that Farm to Fork’s owner, Sherry Hurley, negotiated with Mr. Holland gives her the right to buy the building for $225,000, terms she is determined to meet. “I have personally and professionally made a big investment in Portland,” Ms. Hurley said. “I am committed to weathering the Covid-19 storm.” | The favorable lease that Farm to Fork’s owner, Sherry Hurley, negotiated with Mr. Holland gives her the right to buy the building for $225,000, terms she is determined to meet. “I have personally and professionally made a big investment in Portland,” Ms. Hurley said. “I am committed to weathering the Covid-19 storm.” |
New projects Mr. Holland planned for later this year are unsettled. One of them, the largest and most expensive he has undertaken, is a $17 million mixed-use renovation of three 19th-century wood and brick warehouses overlooking a riverfront park. The 126,000-square-foot project encompasses 60 market-rate apartments and 37,000 square feet of commercial space. | New projects Mr. Holland planned for later this year are unsettled. One of them, the largest and most expensive he has undertaken, is a $17 million mixed-use renovation of three 19th-century wood and brick warehouses overlooking a riverfront park. The 126,000-square-foot project encompasses 60 market-rate apartments and 37,000 square feet of commercial space. |
“This has always been challenging,” Mr. Holland said. “Nothing about what’s happening now makes it easier.” | “This has always been challenging,” Mr. Holland said. “Nothing about what’s happening now makes it easier.” |
One hopeful note is that construction on existing projects has not shut down. Mr. Holland is set to close the loan on a new $3 million mixed-use building on 17th and Bank Streets that will include 20 small market-rate apartments aimed at students and young professionals and 7,000 square feet of retail space. | One hopeful note is that construction on existing projects has not shut down. Mr. Holland is set to close the loan on a new $3 million mixed-use building on 17th and Bank Streets that will include 20 small market-rate apartments aimed at students and young professionals and 7,000 square feet of retail space. |
Construction is set to start in April. But he’s nervous about the schedule. Pennsylvania became the first state to close construction projects on March 21. Boston, New York and San Francisco, among other cities, stopped “nonessential construction.” | Construction is set to start in April. But he’s nervous about the schedule. Pennsylvania became the first state to close construction projects on March 21. Boston, New York and San Francisco, among other cities, stopped “nonessential construction.” |
The epidemic is professional and personal for Mr. Holland, who shut his Portland Avenue office, housed in a former Boys and Girls Club he renovated in 2014 for $250,000. His staff now works from home. | The epidemic is professional and personal for Mr. Holland, who shut his Portland Avenue office, housed in a former Boys and Girls Club he renovated in 2014 for $250,000. His staff now works from home. |
He was conducting dozens of tours every month for buyers, renters and investors, but traffic has come to a near standstill. City permitting, inspection and licensing offices are closed to walk-in traffic. | He was conducting dozens of tours every month for buyers, renters and investors, but traffic has come to a near standstill. City permitting, inspection and licensing offices are closed to walk-in traffic. |
The pandemic has roiled his plans, but it is not likely to be fatal. Mr. Holland has a reputation for developing sound projects in tough neighborhoods in this Ohio River city of 630,000 residents, said Mayor Greg Fischer of Louisville. | The pandemic has roiled his plans, but it is not likely to be fatal. Mr. Holland has a reputation for developing sound projects in tough neighborhoods in this Ohio River city of 630,000 residents, said Mayor Greg Fischer of Louisville. |
In 2006, Mr. Holland and his wife, Augusta, started to invest in a block of similarly old and blighted buildings across town along East Market Street to create a $13 million nexus of new restaurants, businesses and residences. They named the area NuLu. More than a decade later, it has attracted $500 million in investments in new residences and business start-ups and has become one of Louisville’s most active dining and entertainment districts. | In 2006, Mr. Holland and his wife, Augusta, started to invest in a block of similarly old and blighted buildings across town along East Market Street to create a $13 million nexus of new restaurants, businesses and residences. They named the area NuLu. More than a decade later, it has attracted $500 million in investments in new residences and business start-ups and has become one of Louisville’s most active dining and entertainment districts. |
NuLu and the Portland project join a number of Louisville neighborhoods, including those in West Louisville, a predominantly African-American area, that are experiencing strong redevelopment activity. | NuLu and the Portland project join a number of Louisville neighborhoods, including those in West Louisville, a predominantly African-American area, that are experiencing strong redevelopment activity. |
“Gill knows what he’s doing,” Mr. Fischer said in an interview before the pandemic unfolded. “Portland is a much bigger project than NuLu. He knows it will take more time.” | “Gill knows what he’s doing,” Mr. Fischer said in an interview before the pandemic unfolded. “Portland is a much bigger project than NuLu. He knows it will take more time.” |
Mr. Holland also bought and renovated 55,000 square feet of residential space in Portland, much of it in single-story shotgun-style and two-story Victorian homes along Portland Avenue, the spine of the redevelopment. He worked with the Housing Partnership, a nonprofit local housing developer, to build the $3 million Montgomery Apartments. The neighborhood’s first new multifamily residential building in a generation, it already has a waiting list for the 24 units of affordable housing. | Mr. Holland also bought and renovated 55,000 square feet of residential space in Portland, much of it in single-story shotgun-style and two-story Victorian homes along Portland Avenue, the spine of the redevelopment. He worked with the Housing Partnership, a nonprofit local housing developer, to build the $3 million Montgomery Apartments. The neighborhood’s first new multifamily residential building in a generation, it already has a waiting list for the 24 units of affordable housing. |
“Just like he did in NuLu, Gill has been surgical in his development in Portland,” said Jason Ferris, a partner in the Louisville appraisal firm Bell Ferris. “His intention is to create micro-markets that over time will overlap and elevate the entire neighborhood.” | “Just like he did in NuLu, Gill has been surgical in his development in Portland,” said Jason Ferris, a partner in the Louisville appraisal firm Bell Ferris. “His intention is to create micro-markets that over time will overlap and elevate the entire neighborhood.” |
Portland has endured natural and economic disasters just as serious as the coronavirus pandemic. Established in 1811 as an Ohio River port, Portland was flooded twice in the 20th century, and made it through the Great Depression and a bank-fueled real estate boom and bust in the 2000s. Bankruptcies and joblessness in the last recession left hundreds of homes and buildings vacant. | Portland has endured natural and economic disasters just as serious as the coronavirus pandemic. Established in 1811 as an Ohio River port, Portland was flooded twice in the 20th century, and made it through the Great Depression and a bank-fueled real estate boom and bust in the 2000s. Bankruptcies and joblessness in the last recession left hundreds of homes and buildings vacant. |
Portland deteriorated, but the architectural character of its homes and the sturdiness of its old warehouses remained. The prices of Mr. Holland’s early acquisitions in the neighborhood were attractive. Empty shotgun houses sold for $5,000. | Portland deteriorated, but the architectural character of its homes and the sturdiness of its old warehouses remained. The prices of Mr. Holland’s early acquisitions in the neighborhood were attractive. Empty shotgun houses sold for $5,000. |
Updated May 28, 2020 | |
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | |
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | |
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | |
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | |
More than 40 million people — the equivalent of 1 in 4 U.S. workers — have filed for unemployment benefits since the pandemic took hold. One in five who were working in February reported losing a job or being furloughed in March or the beginning of April, data from a Federal Reserve survey released on May 14 showed, and that pain was highly concentrated among low earners. Fully 39 percent of former workers living in a household earning $40,000 or less lost work, compared with 13 percent in those making more than $100,000, a Fed official said. | |
There is an uptick in people reporting symptoms of chilblains, which are painful red or purple lesions that typically appear in the winter on fingers or toes. The lesions are emerging as yet another symptom of infection with the new coronavirus. Chilblains are caused by inflammation in small blood vessels in reaction to cold or damp conditions, but they are usually common in the coldest winter months. Federal health officials do not include toe lesions in the list of coronavirus symptoms, but some dermatologists are pushing for a change, saying so-called Covid toe should be sufficient grounds for testing. | |
Yes, but make sure you keep six feet of distance between you and people who don’t live in your home. Even if you just hang out in a park, rather than go for a jog or a walk, getting some fresh air, and hopefully sunshine, is a good idea. | |
Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. | |
The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. | |
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | |
If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | |
Charity Navigator, which evaluates charities using a numbers-based system, has a running list of nonprofits working in communities affected by the outbreak. You can give blood through the American Red Cross, and World Central Kitchen has stepped in to distribute meals in major cities. | |
Sturdy old buildings were available at low prices, too. He paid $400,000 for the 17,000-square-foot Montgomery Street School, an 1853 building on the National Historic Register once used as a Civil War hospital. After a $250,000 renovation, the building includes a studio for the visual artist Richard Sullivan and offices for nonprofit organizations and businesses. | Sturdy old buildings were available at low prices, too. He paid $400,000 for the 17,000-square-foot Montgomery Street School, an 1853 building on the National Historic Register once used as a Civil War hospital. After a $250,000 renovation, the building includes a studio for the visual artist Richard Sullivan and offices for nonprofit organizations and businesses. |
On nearby Rowan Street, Mr. Holland bought a 60,000-square-foot warehouse built in 1880 for $250,000 and persuaded the University of Louisville to lease most of the space. With lease in hand, he raised $5 million to renovate the interior. Instructors and students moved in last year. | On nearby Rowan Street, Mr. Holland bought a 60,000-square-foot warehouse built in 1880 for $250,000 and persuaded the University of Louisville to lease most of the space. With lease in hand, he raised $5 million to renovate the interior. Instructors and students moved in last year. |
As the neighborhood improved, concerns were voiced that rising home values and rents would push out longtime residents. But Mr. Holland responded that, with 1,400 abandoned properties, the neighborhood could accommodate decades of new construction and much higher population growth before it would reach prices that would force residents to move. | As the neighborhood improved, concerns were voiced that rising home values and rents would push out longtime residents. But Mr. Holland responded that, with 1,400 abandoned properties, the neighborhood could accommodate decades of new construction and much higher population growth before it would reach prices that would force residents to move. |
“Over all, people have welcomed and are excited to see business improvements on Portland Avenue,” said Judy Schroeder, a fifth-generation Portland resident active in Portland Now, a neighborhood association. | “Over all, people have welcomed and are excited to see business improvements on Portland Avenue,” said Judy Schroeder, a fifth-generation Portland resident active in Portland Now, a neighborhood association. |
Mr. Holland has been recruiting “value-add” investors, business owners and residents who intend to stay and make a difference. One of those is Danny Seim, an artist who moved from Portland, Ore., in 2015 and bought a home in the Portland neighborhood. His wife is a resident psychiatrist at the University of Louisville. | Mr. Holland has been recruiting “value-add” investors, business owners and residents who intend to stay and make a difference. One of those is Danny Seim, an artist who moved from Portland, Ore., in 2015 and bought a home in the Portland neighborhood. His wife is a resident psychiatrist at the University of Louisville. |
Mr. Seim has painted colorful murals on neighborhood walls, and last summer, he became co-director of the Portland Museum. Next to the museum was a vacant 1870 Victorian home that Mr. Seim painted using excess materials from one of his murals. “I thought if something wasn’t done, if it wasn’t made more attractive, that beautiful house would be torn down,” he said. | Mr. Seim has painted colorful murals on neighborhood walls, and last summer, he became co-director of the Portland Museum. Next to the museum was a vacant 1870 Victorian home that Mr. Seim painted using excess materials from one of his murals. “I thought if something wasn’t done, if it wasn’t made more attractive, that beautiful house would be torn down,” he said. |
The building turned out to be owned by Mr. Holland, who offered to sell it to Mr. Seim for $40,000. The two are now collaborating on a $1 million project to renovate the house, landscape the backyard and build a 2,000-square-foot events center for a children’s museum and play area. | The building turned out to be owned by Mr. Holland, who offered to sell it to Mr. Seim for $40,000. The two are now collaborating on a $1 million project to renovate the house, landscape the backyard and build a 2,000-square-foot events center for a children’s museum and play area. |
“People want to stake their claim in the neighborhood,” said Mr. Seim, who has already raised $100,000 for the center. “Most of what we need to do with this project is right here.” | “People want to stake their claim in the neighborhood,” said Mr. Seim, who has already raised $100,000 for the center. “Most of what we need to do with this project is right here.” |