The Owensboro Board of Commissioners has approved an incentive agreement aimed at supporting the redevelopment of the former U.S. Bank building at 700 Frederica Street into a mixed-use project that will include new residential units downtown.
Commissioners on Tuesday approved Municipal Order 7-2026, authorizing Mayor Tom Watson to execute a memorandum of agreement with 700 Frederica Street LLC. The agreement allows the City to provide an incentive payment for each residential unit constructed as part of the redevelopment project.
Plans for the redevelopment, known as the Cardinal Reserve, include transforming the building into a three-story structure with commercial space on the main level and residential units above. The development is expected to bring new business opportunities and additional housing options to the downtown corridor.
City Manager Nate Pagan said the project involves renovating the existing building — once home to U.S. Bank and previously known as Cardinal Federal Bank — while also adding a new level to the structure.
“The developers are renovating the building and adding an additional floor. So it’s actually kind of a neat project. You don’t see that very often — just have a floor added to the top of a building,” Pagan said.
When completed, the project is expected to feature 16 residential units located on the second and third floors of the building.
Pagan said the City is offering the same incentive structure used for the Brio development project several years ago on Second and Third streets.
“We’re providing the same incentive for this project as we did several years ago for each residential unit at the Brio project on 2nd and 3rd Street, which is approximately $6,100 per unit,” Pagan said.
According to the municipal order, the incentive is intended to encourage residential development at the property, which officials say will benefit the community by bringing additional housing and activity to the downtown area.
The commission approved the order without discussion.
