KY 54 property sale sparks push for bills targeting vacant state land, tax hikes

September 25, 2025 | 12:14 am

Updated September 24, 2025 | 11:43 pm

Photo by Ryan Richardson

The recent sale of the long-vacant juvenile justice property on KY 54 has prompted two Daviess County lawmakers to draft legislation they say will help prevent similar delays across Kentucky. 

Rep. DJ Johnson and Sen. Gary Boswell said the Owensboro property, which sat idle for years before the City of Owensboro purchased and then sold it for redevelopment, exposed flaws in how the state handles surplus property and showed the need for broader reforms.

Johnson said the 6-year wait to repurpose the site revealed just how complicated the state’s process can be.

“That property sat there for years, doing nothing,” Johnson said. “The objective is to identify properties that are sitting useless, sitting vacant, and then hopefully put a more streamlined process with maybe a firmer timeline in place, to move these properties back into some kind of use.”

Currently, state agencies must first declare a property excess before offering it to other agencies. If no one else claims it, the property can be opened to bidding. Johnson said that the process often stalls, leaving parcels in limbo. He and Boswell want to simplify the system while still allowing local governments a “first look” if they have a plan to put the property back into productive use.

Boswell said the KY 54 deal is just one example of a statewide problem, with countless parcels left vacant and off the tax rolls. He wants future sales to feed the state’s general fund, arguing the money could support Kentucky’s budget and help reduce reliance on income taxes.

“The most important thing is getting rid of this nuisance and getting it back on the tax rolls,” Boswell said. “We’ve got vacant buildings all over the state. This bill will help expedite the process of selling those or getting them into private hands. The infusion of a lot of cash from the sale of this surplus property could help our overall budget.”

Boswell is also reviving a separate property tax measure he filed last year. His bill would require any taxing district — such as a city, county, or library board — that raises taxes more than the 4% allowed under House Bill 44 to automatically place the increase on the ballot, rather than relying on citizens to organize a recall petition.

“Why should the taxpayers have to go out and do a recall petition?” Boswell questioned. “If they raise taxes over 4%, they should put it on a ballot.”

Both lawmakers said they hope to present draft language at a committee hearing soon, with the goal of filing the bills in January when the General Assembly convenes.

“Everybody wants efficient use of state property,” Johnson said. “We need to do something better when it comes to these properties.”

Developers have already begun sharing early visions for the KY 54 site that could include commercial, residential, and retail uses.

September 25, 2025 | 12:14 am

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