Paducah Main Street Resources

Get a Head Start with Paducah Main Street

If you are a business or potential resident looking to make the Downtown Historic District your home, our resources will guide you to make the moving process simple.

Whether you’re looking to renovate a historic property for commercial or residential use, or you want to find the perfect renovated property, Paducah Main Street has resources available to help you along the way.

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City of Paducah incentive programs

The City of Paducah offers a host of programs through the Planning Department to encourage development, beautification, rehabilitation, and stabilization of the Historic Downtown Commercial District. These programs are a resource to established or prospective businesses looking to locate Downtown Paducah:

Historic Downtown New Business Grant Program

The Historic Downtown New Business Grant Program provides for the creation of new businesses within Historic Downtown Paducah. The program’s intention is to provide financial resources to assist new business owners locating Downtown Paducah. The redevelopment of buildings is essential to sustaining an economically strong Downtown Commercial District.

For business using less than 1,000 square feet: 100% reimbursement for eligible costs of the first $5,000. The program provides for 50% reimbursement of eligible costs between $5,001 and $10,000.

For business using 1,000 square feet or more: 100% reimbursement for eligible costs of the first $7,500. The program provides for 50% reimbursement of eligible costs between $7,501 and $15,000.

Micro-Grants: Facade and Beautification

The City of Paducah offers two Micro-Grants for new and established businesses in the Historic Downtown Commercial District.

Beautification Grant: Businesses can receive a match of up to $1,000 for eligible beautification projects including painting, lighting, or the addition of flowers or art.

Facade Grant: This financial incentive to Paducah Main Street merchants and property owners in the project area helps them improve their buildings while retaining the historic character of the district. Only commercial properties are eligible. The City will match eligible improvements to the exterior of a property up to 50% of the total project costs. Grant amount is not to exceed $2,000. Total grant funds available will be limited to $8,000 per fiscal year. Façade Grants will be available year-round and will be awarded monthly as funds are available. Completed applications must be submitted to and approved by the Paducah Main Street Design Committee prior to work beginning. Grants are not awarded for work done prior to approval. Work must be completed within 180 days of grant award. Once the project is completed, grantees must submit paid receipts for reimbursement. Paducah Main Street will verify that the work was done according to the approved application before reimbursing funds. Reimbursements will be made within 14 days of the submission of approved receipts. A facade is defined as an individual storefront or side of a building that faces a public street or public alley with public access. Separate addresses within a single building may qualify as separate facades.

Facade Grant Eligible Improvements:

Masonry or mortar joint repair
Window or door repair/replacement
Repair or purchase of new awnings
Transom and window repair/replacement
Removal of non-historic materials (e.g. siding that covers transom windows, bricked-over window or door openings, removing paint from brick, etc.)
Replacement of architectural details
Exterior painting (except for applying paint to unpainted brick)
Exterior lighting or interior storefront window display lighting that remains on during evening hours
Other improvements may qualify on a case-by-case basis

Upper Story Residential Grant Program

The Upper Story Residential Grant Program is designed to encourage upper story residential rental units in Paducah’s Historic Downtown. Property owners/developers within a defined area in historic downtown will be eligible to apply for financial assistance to create new upper story living spaces in new or existing buildings. The grant shall not exceed 20% of the construction costs or a maximum of $15,000 per Upper Story Residential Rental Unit. For a residential owner-occupied unit, the grant is either 15% of the construction costs or a maximum of $15,000 per unit.

This program is through the City of Paducah Planning Department with the Urban Renewal & Community Development Agency (URCDA) overseeing the allocation of funds up to $60,000. For projects that exceed an allocation of $60,000, the project will be forwarded to the City Commission for approval.

To apply for the Upper Story Residential Grant Program, complete an application and submit the following items:

A current list of owners/partners or officers/directors who have ownership in the property
Copy of property deed
Copy of insurance policy
Third party estimates of work to be done from a qualified contractor
Proof of financial ability to complete 100% of the Upper Story Residential Project
Rehabilitation plans

Downtown Parking

Are you planning a trip to historic downtown Paducah? More than 500 parking spaces are available in the heart of downtown along the streets. Plus, there are several FREE public parking lots with more than 1000 total spaces.

Farmers’ Market Lot (200 North 2nd Street) – 216 spaces at North 2nd and Jefferson streets with the Farmers’ Market at one end and public restrooms along Jefferson Street
North 2nd and Broadway (133 Broadway) – approximately 175 spaces located at North 2nd Street and Broadway (the remaining part of the block is a construction site for the City Block project)
3rd and Kentucky (300 Kentucky Avenue) – 152 spaces
117 Kentucky Avenue – 8 spaces next to Market House Theatre
South Water Street – 18 spaces across from Iron Horse Train Memorial next to the Carson Center (100 Kentucky Avenue)
325 Marine Way – 173 spaces behind the Commerce Center (300 South 3rd Street)
229 Marine Way (Finkel lot) – 73 spaces across from Carson Center
Schultz Park Lot – 22 spaces on river side of floodwall next to Transient Dock
PATS Park-N-Ride Lot (421 Martin Luther King Jr. Drive) – more than 47 public spaces owned by Paducah Area Transit System (PATS) near the Convention Center

Entertainment Destination Center

A section of Paducah’s historic downtown is an Entertainment Destination Center. The Center allows customers to take to-go alcoholic drinks in designated cups from participating businesses to stroll our historic streets within the Destination Center.

Overview: The Entertainment Destination Center (EDC) draws people to Paducah’s downtown, strengthens existing local businesses, and attracts new entrepreneurs. This Center boosts existing restaurant and hospitality industries by allowing customers to take to-go alcoholic drinks in designated cups from participating businesses and stroll our historic streets, browse the windows of our local boutiques, shop at participating businesses with your favorite beverage, watch the towboats on the river, and partake in outdoor events.

Expanded Opportunities for Businesses: New for 2023 – businesses within the district can choose to allow beverages in the approved EDC cups in their establishments. Look for the “EDC Friendly” sticker in the window of participating businesses. Businesses interested in participating must first contact the City of Paducah.

Hours: The Destination Center hours are daily from 6 AM until midnight.

Designated To-Go Cups: The City designed to-go cups specific to downtown Paducah for the participating businesses. The drinks must stay in the Destination Center. Beverages purchased outside the Center are prohibited. The cups cannot be refilled or brought into non-participating establishments. Please dispose of them properly within the Destination Center.

Boundary: The Destination Center covers a large section of downtown (see map) stretching down Broadway from 5th Street to the river and from Clark Street toward the Convention Center complex. It excludes the residential areas in Lowertown. Signs have been installed at the boundaries to educate the public on boundary limits and the days and times of operation.

Opportunity Zones

What is an Opportunity Zone?

Opportunity Zones are an economic development tool promoting investment in distressed communities through legislation enacted by the Federal Tax Cuts and Jobs Act of 2017. Communities have been designated as Opportunity Zones by the U.S. Department of Treasury, incentivizing investments in these distressed communities to better address local needs in areas such as business growth, improvements to housing, and improvements to infrastructure.

While Paducah is filled with opportunity, Kentucky’s governor selected two census tracts (pictured) located along the Ohio River as our official Opportunity Zones.

What is the Opportunity?

U.S. investors currently hold an estimated $2.3 trillion in unrealized capital gains. Opportunity Zones leverage this pool of money to promote economic development by providing federal capital gains tax advantages for investments made in these areas. Investors can realize deferral and reduction of capital gains taxes in investments held for at least five years with additional incentives available for investments maintained in Opportunity Zones for 7 and 10 years. To be eligible, investments must be made through Qualified Opportunity funds which are vehicles formed for investing in eligible Opportunity Zone property.

Paducah is a thriving community! We want you to start your investment process as soon as possible. If you’re ready to get the discussion going, contact the Planning Department at 270-444-8690. The City’s Team will take you through everything you need to know about our Opportunity Zones and the culture of our bustling community.

Business Licensing

Who needs a business license?

Any corporation, partnership, proprietorship, individual that receives or expects to receive gross receipts in excess of $600 annually in the conduct of business in Paducah is required to obtain a business license.

Also, businesses that are not physically located within the city limits but are conducting business within the city such as licensed construction contractors, real estate sales, janitorial services, security services, gardening services, property management, etc. are also required to obtain a business license.

Any person who conducts or operates a business within the City of Paducah must obtain a business license before operations begin. Conducting business without a business license may result in enforcement action against the business and its owners including citation and court action.

City of Paducah Business License Tax

A Business License Tax is an annual tax you pay each fiscal year for doing business within the City of Paducah. The City’s municipal code requires that you obtain a license PRIOR to conducting any business activity within the City – even if your business is located outside the city limits or you have a business license from another city. The Business License is evidence only that your tax has been paid. Other permits may be required to open your business. A separate tax certificate is required for each type of business at the same location or for each branch location. Receipt of a Business License does not constitute an endorsement of the business, nor does it grant permission to conduct business at any place prohibited by the City’s Zoning Ordinances or any other Federal, State, or Local regulation.

Completed applications can be submitted by email to the City of Paducah Finance Department at revenue@paducahky.gov.