The former Towne Square Mall property is yet another step closer to a major transformation, as the City of Owensboro has approved a $1.5 million incentive package to help bring a $17.7 million indoor and outdoor family entertainment center to life.
The Owensboro City Commission passed the measure Tuesday by adopting Municipal Order 10-2025, which authorizes four installment payments to TS Entertainment, LLC as construction milestones are met. The developer must invest at least $10.5 million to receive the full incentive.
TS Entertainment, a local investment group, plans to revitalize the 33-acre property at 5000 Frederica Street and 5105 Back Square Drive with a wide range of attractions, including go-karts, laser tag, mini golf, bowling, an arcade, lawn games, and a children’s playground. A stage and indoor lawn area are also planned for concerts and events.
“This is the type of development that not only fills a gap on South Frederica, but also brings new life to an area that’s been struggling since the mall closed,” said City Manager Nate Pagan. He emphasized that payments are tied to progress: “The last payment isn’t made until they have a certificate of occupancy. It’s all about accountability and ensuring the project gets done.”
The city’s agreement outlines a 24-month window for construction to begin and a 36-month timeframe for completion. Payments of $375,000 each will be made when TS Entertainment obtains a building permit, reaches 25% and 50% construction benchmarks, and gains occupancy approval.
The project received a major boost recently when the Kentucky Tourism Development Finance Authority (KTDFA) approved more than $2 million in incentives through the Kentucky Tourism Development Act. The state incentives are designed to support projects that enhance tourism and stimulate local economies.
“Receiving KTDA approval is an exciting milestone, but there’s still work to be done,” said Tony Yager of TS Entertainment. “Community engagement and local support will be key to making this vision a reality.”
The entertainment complex is expected to create 75 full-time and 50 part-time jobs, and project estimates suggest out-of-state visitors could make up 25% of guests in year one and 35% by year five.
City Commissioner Sharon NeSmith said the incentive represents a smart reinvestment in the city’s future.
“The incentive decision to support a new venture at the mall location ensures that abandoned property is revitalized,” NeSmith said. “The plans incorporate entertainment for our youth and families and offer new options to entertain those who visit Owensboro. We are fortunate to have local investors bringing new ideas to contribute to our city’s continued growth.”
Commissioner Bob Glenn also voiced support for the project, calling it a “wholesome, family-friendly” addition that could benefit tourism and help attract other businesses to the South Frederica corridor.
“Dividing the payments over time protects taxpayers and ties funding to real progress,” Glenn said. “It’s also an important step toward filling other vacant properties in the area, like the old Tumbleweed and TGI Friday’s locations.”
Commissioner Jeff Sanford said he was initially skeptical but became a strong supporter after reviewing the project vision. “If it turns out anything like what I’ve seen, it’ll be extremely nice,” he said. “South Frederica needs investment, and this is a step in the right direction.”
The city’s agreement includes provisions to withhold funding if construction stalls or TS Entertainment fails to meet its obligations. Pagan said those safeguards, along with the economic potential, made the investment worthwhile.
City Commissioner Curtis Maglinger also expressed support for the project.
“I think it’s important to invest in local opportunities that help promote tourism.,” Maglinger said. “With major investments like Kentucky Sound Stage and other businesses are making on the South part of Owensboro, we have the opportunity to really do great things for our community.”
“This isn’t just about one development,” Glenn added. “It’s about what comes next — jobs, tourism, and long-term growth for the entire area.”
