According to the statute, an appellee, such as a developer, can file a motion in Circuit Court requesting an appeal bond be posted by an appellant. The circuit court in question would then conduct a hearing to gather findings of fact and set a bond amount.

Nick Pregliasco, an attorney with Louisville-based Bardenwerper Talbott & Roberts PLLC, explained if the appeal is deemed presumptively frivolous after that hearing, an appellant could be required to post a maximum bond up to $250,000. Appeals not deemed presumptively frivolous could still bring a maximum bond amount of $100,000.

The appeal can be dismissed if the bond is not posted within 15 days, according to court documents.

“Bonds have been required by the court for an appeal, so it was just a matter of time before one of those was then ultimately challenged,” Pregliasco said. “In this case, there were three different challenges, and they all were decided at the same time.”

When drafting the bill, the General Assembly stated the purpose of the statute was “to curb unnecessary appeals of land-use causes because appeals burden the courts, cause loss of jobs and loss of tax revenue, and many times render time sensitive projects such as multifamily affordable housing undevelopable.”

Local developer Scott Hagan, CEO of Hagan Properties, was an advocate of the statute since its inception. He said it took three years and many resources to get the initial bill passed.

The Court of Appeals upholding the law is a huge win for the Kentucky business community, Hagan said, because it enables developers to have a mechanism to limit lawsuits with the sole purpose of stalling development.

“This statute goes a long way toward balancing the interests of zoning opponents and developers/land sellers. It provides for zoning opponents to be heard at the applicable planning commission and then to appeal that decision to the applicable Circuit Court,” Hagan said. “But then, assuming they want to appeal the Circuit Court decision to the Kentucky Court of Appeals they must post a bond in varying amounts as determined by the Circuit Court judge. Shortening these appeals will prevent loss of income by developers, loss of tax revenue and loss of construction and permanent jobs.”

Three cases across the state took the statute to the Kentucky Court of Appeals, arguing it was unconstitutional. In all three cases, the appellants were contesting a decision from each respective circuit court.

The court documents show the cases were: Bluegrass Trust for Historic Preservation v. Lexington Fayette Urban County Government Planning Commission; Com. Of Kentucky ex re. Cameron v. Boone Development LLC; and Raz Inc v. Mercer County Fiscal Court.

Each case argued the law was unconstitutional because it infringes on the separation of powers, imposes a penalty on the right to appeal and violates the equal protection clauses of the U.S. and Kentucky constitutions, according to court documents.

Louisville-based Hagan Properties has a few projects in the works, including a new multifamily development off Shelbyville Road.

The developer submitted plans this week for Locust Creek Apartments, a 370-unit apartment complex at 18501 Shelbyville Road. The plans show the complex will consist of 16 three-story buildings on about 27.5 acres.

Layson Hagan, principal and developer with Hagan Properties, said the units will start at 720 square feet and go up to 1,720 square feet. The rental rates will range from about $1,100 to $2,500.

Several amenities are including in the complex’s current design, including two dog parks, a pet spa, a swimming pool, a playground and clubhouse. Hagan said 30% of units will have direct access to garages as well.

The project is still in its early stages, so there isn’t a timeline in place for construction just yet. Hagan said the firm has a few other projects in the pipeline that will likely be delivered before Locust Creek, including the 520-unit Providence Point Apartments located on Herr Lane.

The plans show Gresham Smith, which has an office in Louisville, will be providing its services to the project. Hagan said Hagan Properties has an in-house construction company that usually provides contracting services on the firm’s multifamily projects.

Because the project is in its infancy, Hagan said there isn’t an estimated total cost yet.

The parcel of land was attractive because of its availability on a busy road, he noted.

“This property came onto our radar about a year ago. It was zoned R6 back in 1999 and it is one of the last remaining undeveloped parcels on Shelbyville Road that falls within the limits of Jefferson County,” Hagan said. “We met with the current landowner, Mr. Maurice Sweeney, and hit it off right away.”

The property is close to Louisville’s outer limits, but still remains in Jefferson County. Hagan said several demographics will find the location appealing, including families, millennials, young professionals and retirees.

Hagan Properties built several other multifamily projects around Louisville, including the 470-unit Victory Knolls and the 356-unit 9910 Sawyer Apartments, a sprawling upscale apartment complex that backs up to E.P. “Tom” Sawyer State Park.

We previously reported the firm is investing about $48 million into a 324-unit apartment complex on 19 acres at 8000 and 8006 Cedar Creek Road.