Kindred may change the face of Theater Square

Kindred Healthcare is planning to expand its headquarters along Fourth Street just north of Broadway — likely changing the face of Theater Square.

Popular lunchtime spots Bluegrass Brewing Co. and Yafa Cafe will be affected by the expansion, though both have two years remaining on their leases. The Louisville Clock, which is on city-owned land that is not yet involved with the project, will almost certainly have to be moved, said Chris Poynter, Mayor Greg Fischer's spokesman.

Since late last year, Kindred has purchased nearly all the property at Theater Square across from The Brown hotel. Its corporate offices are in a six-story building on the north side of Broadway between Fourth and Fifth streets.

Kindred officials are mum on their plans and on such details as how many jobs might be added. Kindred spokeswoman Susan Moss didn't return calls and didn't respond to emails seeking comment on the headquarters plans.

Kindred officials are in continuing talks with the city, according to Poynter. He declined to comment if Kindred had asked the city for financial incentives to assist its project.

Kindred purchased much of the Theater Square land from FBM Properties last year, including property on the south side of the square in September and property on the north side in December, according to Jefferson property valuation office records. The purchased property is assessed at around $3.3 million.

Kindred also purchased a building, now vacant, on the west side of Theater Square adjacent to its headquarters from FMEE Properties last December.

FBM owns the Ohio theater marquee outlet, where a smoke shop is located on the east side of Theater Square. Jim Fox, an FBM partner, said Kindred has not expressed interest in acquiring that site. He said he has not been told details of Kindred's plans.

Operators of BBC and Yafa haven't been given a date on when they might have to be gone. Yafa's operators declined comment, and BBC manager Matt Reese said he wasn't sure of his restaurant's long-range status. But he noted that BBC has another downtown store near Main and Third streets.

New era

Larry Bisig, a partner in the Bisig Impact Centre, a four-story office building immediately north of the purchased properties, described Theater Square as a project "whose time has come."

He noted that many businesses have opened and closed at Theater Square since it was established as part of the Broadway Renaissance in 1985. For instance, the currently empty building owned by Kindred on the west side of the square was originally Hugs nightclub — and over the years it also housed the Palladium, Rick's Square Piano, the Sheer Image Salon Spa, Club Villa Fontana and, most recently, the Roxbury.

Bisig called that building an eyesore and said he is especially pleased that it is under Kindred's new ownership. "Kindred is an expanding business and it needs more space. That is good," Bisig said. "They are a top-notch neighbor and ready to roll."

Kindred and subsidiaries operate more than 100 hospitals, nearly 100 nursing centers and numerous home-health, hospice and non-medical home-care facilities. It has more than 2,000 employees based in Louisville, including about 200 in the Kaufman-Straus building two blocks north on Fourth.

George Stinson, an owner of the Marketplace at Theater Square on the east side of Fourth — the former Kentucky Theater property — said Kindred hasn't approached him about acquiring that site.

Bisig noted that although Yafa and BBC in Kindred's properties may close or relocate, a half-dozen or so places to eat remain in the 600 block along Fourth — and at least that many more are located within a block in three other directions. Other dining spots in the 600 block of Fourth include the Marketplace, Sicilian Pizza & Pasta, Sapporo, Safier Mediterranean Deli, Cunningham's and two restaurants in The Brown — the English Grill and J. Graham's Cafe.

"We can get along without (BBC and Yafa)," Bisig said. "There are plenty of other food opportunities" nearby.

However, Matt Willinger, who works in an office near Theater Square, said he eats at BBC several times a month and will miss it if it closes or relocates. "You always see people sitting outside on the patio around Happy Hour," he said. "It looks like the business crowd, guys in suits having a beer."

"When we moved in here in 2002, there were tumbleweeds blowing down Fourth Street," Bisig said. "Now the area is vibrant, active and very important for the Louisville market."

That activity includes a concerted effort by city officials to beef up Fourth Street south of 4th Street Live to Broadway. They have targeted South Fourth as a new retail center, and a half-dozen merchants have opened there in the last year or two.

The city also is in the middle of a nearly $4 million upgrade of South Fourth's streetscape.

A Hilton Garden Inn will open at Fourth and Chestnut later this year. The new Mercury Ballroom concert venue near Chestnut and the Louisville Palace join The Brown hotel as pedestrian-traffic generators.

In the early 1980s, a public-private partnership was formed to develop the south end of Fourth Street near Broadway. Its effort included developing Theater Square — and saving all or part of the old Kentucky and Ohio theaters — building a parking garage and reopening The Brown hotel. The partners in the $45 million project included the city, state, a labor pension fund and five local corporations and banks.

Dick Dinsmore, a semi-retired property manager who long specialized in monitoring commercial space in and around Theater Square, said the partnership "achieved its objective and invested a lot of money in revitalizing that area. But, it appears that this is the passing of an era. And if Kindred can come in and take it to the next level, that would be great."

The Broadway partners in 1993 agreed to sell the Theater Square buildings to FBM Properties.

Louisville Clock

City officials have begun to consider a new home for the Louisville Clock. It was given what seemed like a permanent home at Theater Square in August 2012 — after being rebuilt following a decade of wallowing in disrepair.

Poynter said the city's current preference is to move the iconic, 40-foot-high timepiece designed by the late artist Barney Bright to inside the downtown Kentucky International Convention Center — after its planned $180 million renovation and expansion are completed, probably around 2017.

Other locations haven't been ruled out, but he noted that the heavy volume of traffic — including many out-of-town visitors — at the convention center near Third and Market make it an ideal site.

A permanent indoor location would also keep the fragile clock away from the wear and tear of the elements. "It would be protected," Poynter said. And the upgraded convention center, he said, needs a major piece of artwork.

Stinson, the Marketplace partner, said he would miss the clock if it were to move. But Bisig said he wouldn't miss it, adding that he considered it "misplaced" at Theater Square and that it would be better situated under roof and out of the elements.

The clock features five figures that race around the tilted clock face — Daniel Boone, Thomas Jefferson, King Louis XVI, George Rogers Clark and the Belle of Louisville. They are cheered on by five other animated figures in a grandstand. The race winner is chosen randomly by computer; each figure is powered by its own motor.

Architect Steve Wiser, a spokesman for the Louisville Historical League and its Friends of the Clock subcommittee, said the historical league recently raised about $5,000 to get the clock working — it hopes on a consistent basis.

"We hate to have to move it again. But we would be willing to do so, if it is a good thing for the city," he said.

Reporter Sheldon S. Shafer can be reached at (502) 582-7089. Follow him on Twitter at @sheldonshafer.