Part of the team behind Heartland Crossings — which includes Meijer, Menards, and several restaurants — has purchased the former Day Treatment campus on KY 54, with plans to transform the long-vacant property into a major new commercial development.
City officials said the move will not only eliminate a public safety hazard but also set the stage for a first-class project at one of Owensboro’s key gateways.
As first reported by Owensboro Times, the City purchased the property from the state for the appraised value of $3.3 million and immediately resold it to 54 Grand LLC for the same amount, resulting in no net cost to taxpayers. By stepping in at this stage, City Manager Nate Pagan said they were able to accelerate the process and place stronger obligations on the buyer, including demolishing the existing buildings within 6 months.
Martin Walker of 54 Grand said those actions should give residents confidence in the project.
Walker clarified that he and another local partner formed 54 Grand specifically for the site, and they are humbled by the opportunity.
“We love the property, and we think we can really bring something special in there and make a great development,” he said.
To support the project, commissioners approved an incentive agreement offering a 5-year, 75% rebate on certain City tax revenues generated by the development, excluding school taxes. If 54 Grand documents at least $50 million in capital investment, the incentive period can be extended up to 7 years. The deal also requires work to begin within 48 months.
Pagan said they tapped Walker’s group because this isn’t the first time his group pursued the property.
Walker said they previously submitted the winning bid when the state first attempted to sell the site in 2019. At the time, they were optimistic about moving forward, but title issues and other complications prevented the sale from being finalized.
“We kept up with the state for several years after that, but it never came back out for rebid,” Walker said, adding that the process was slowed further by the COVID-19 pandemic. “In the end, it worked out well that the City was able to acquire it and come back to us, since we had already shown interest and had a plan for the site.”
The property remained under state ownership after the Day Treatment program closed, and City leaders said the long delay in selling it contributed to its decline. Pagan also noted during Tuesday’s commission meeting that State Rep. DJ Johnson was instrumental in helping move the process forward once the City expressed interest in acquiring the site.
Walker and another group of investors are also behind the Heartland Crossing development. That property includes Meijer, Menards, Starbucks, Panda Express, LongHorn Steakhouse, Raising Canes, Burger King, Deaconess Urgent Care, and more.
“They liked what we did over at Heartland Crossing, and they knew we had the experience to make a nice development,” Walker said.
Walker added that the KY 54 project will follow the same model by focusing on walkability and overall appearance.
“It’s ideally located at the entrance to Gateway, right by Walmart and Chick-fil-A. Our goal is to make this a first-class development, hopefully even nicer than Heartland Crossing,” he said.
Though no tenants are finalized, Walker said his team is actively approaching major national brands and aiming for a mixed commercial lineup, including retail, restaurants, and related services.
He said the concept could include several outlots and possibly one or two small retail strips, with the final layout and design to be worked out with planning and zoning.
Demolition of the deteriorated structures will be the first step, and Walker said they plan to recycle as much material as possible.
“We’re humbled and appreciative of this wonderful opportunity, and we intend to deliver an attractive space that the community can be proud of,” Walker said.
