City of Frankfort Moves Forward with New Downtown Meeting and Event Center on Former Capital Plaza Site

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Posted on February 24, 2026

The Frankfort City Commission authorized a resolution approving next steps in constructing a meeting and event center in downtown Frankfort at its February 23 meeting.

This action marks an important milestone in a process that began in 2018 with the demolition of the Capital Plaza Complex and the implosion of the Capital Plaza Tower. Since then, the City has taken several strategic steps to support development of the Parcel B and C sites. These efforts include securing federal funding for the City’s Transit Center parking garage, initiating a Tax Increment Financing (TIF) agreement for the area, and recently executing a Payment in Lieu of Taxes (PILOT) agreement for the Capital Plaza Hotel. Each of these steps has helped make the execution of the meeting and event center possible.

The meeting and event center resolution authorized approval of a development contract, management agreement, and financing documents, all of which are necessary for submission in the next steps toward an official public private partnership (P3), which will provide the financing mechanism for the completion of the meeting and event center.

The P3 delivery method, allowable under Kentucky statute, would involve a build-to-suit project in which the City enters a single procurement and contract award for the development, design, financing, construction, facilities management, and maintenance of a capital project over a contractually defined period; and in which the ownership and title of the capital project shall be conveyed at any time to the City. The method for the single procurement and contract award would involve an RFP and competitive negotiation on the basis of best value.

The total cost of the project, to include designing, building, financing, operating, and maintaining the project, is approximately $42 million. Because this amount exceeds Frankfort's general revenue receipts from FY-2025 of $47,523,019 by more than 30 percent, KRS 65.028(12) requires the Kentucky Local Government P3 Board approve the agreements.

This project has the full support of both the City of Frankfort and the Commonwealth of Kentucky. In 2024, the Kentucky General Assembly appropriated $11.25 million in support of a Frankfort meeting and event center. The legislative language required that this $11.25 million appropriation be matched dollar for dollar by the City.

The action taken at the February 23 meeting is the culmination of an 18 month process during which a Request for Proposals (RFP) was advertised with the following actions of a designated multidisciplinary Evaluation and Scoring Committee. Established by the Board of Commissioners in June of 2025, the Committee evaluated and scored four proposals submitted via RFP process. The committee determined that it would conduct a negotiation session with two of the four proposers. As a result of these two negotiation sessions, the Committee selected Red Draw Development of Lexington, KY, as the single negotiating partner. Red Draw Development is also the developer for the rest of Parcels B and C.

The P3 documents now go to the Local Government P3 Board for approval. The city anticipates receiving approval within 180 days. Once approval is secured, Red Draw is authorized to begin design and construction. Once construction starts, the company anticipates it will take approximately 24 months for completion. The construction of the meeting and event center will also commence the two block extension of Washington Street between Broadway and Mero Street along with subsequent development of the area.

The City Commission unanimously approved the meeting and event center resolution, signifying the City’s full commitment to bringing the economic development of Parcels B and C to fruition. The city appreciates the partnership with Red Draw Development, the Commonwealth of Kentucky, and all the numerous stakeholders involved in this process.

Future updates will be posted on the City of Frankfort’s website and social media. For specific project information and questions, please contact Chuck Knowles, Project Manager for the City of Frankfort, cknowles@frankfort.ky.gov.

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