Troubleshooting Success: Louisville Grants Pre-Fab Home Builder $1.7M; Construction Yet to Begin
LOUISVILLE, Ky. (WAVE) — The city has allocated $1.5 million out of the total $1.7 million granted so far for a project with a British-owned firm aimed at establishing a facility to manufacture prefab houses.
Currently, the city plans to provide additional funding for this project. However, almost a year since selling the land to the company with the intention of constructing showcase houses, the WAVE News Troubleshooters discovered that no construction has taken place.
MMY US secured the contract to construct up to five prototype houses.
A significant press conference took place when the city declared its support for the establishment of the company’s factory in the Parkland district, pledging employment opportunities for residents of the West End. However, after a year, WAVE discovered that not all of these commitments have been kept.
Vacant Lots
In the Chickasaw area, the sole activity WAVE discovered at the empty plot located at 913 S. 42nd Street, which was purchased by MMY US, involved a contractor mowing the lawn. Similarly, the site at 531 S. 18th within the Russell district, also transferred to the firm by the municipality, featured overgrown grass reaching knee height. This undertaking came with a set deadline.
“A city employee stated that substantial completion of the project needs to be achieved within 90 days” during the Landbank Authority meeting where they approved the property’s sale.
The Authority appeared content that the company would act swiftly when it gave approval for the sale around a year prior.
"They have gone through the planning phase and also passed the construction review. We've been informed that the expectation is for the first one to be finished by the end of July 2024," stated the staff member.
Nevertheless, municipal documents indicate that MMY US received the permits for the 42nd Street property as recently as March of this year. This contrasts sharply with the grandiose ceremony planned by the mayor scheduled for 2024, during which MMY US CEO Robin Bartram Brown was set to speak.
“As stated by Bartram Brown, our objective is quite straightforward: we aim to provide top-notch products within the specified timeframe and cost constraints for a wide array of clientele.”
The firm has constructed these units, and the completed ones are kept visible inside the premises near the factory entrance. In Sellersburg, MMY US is collaborating with Family Scholar House to develop an apartment complex.
Big Investment Claims
"MMY, a worldwide producer of modular homes, has chosen to inaugurate its first facility in West Louisville with an investment totaling $6.1 million," stated Mayor Craig Greenberg at his press briefing.
Public documents raise questions about the Mayor's assertions. The company's own contract submission for securing municipal funds to equip their facility stated it was essential for constructing a governmental structure in Saudi Arabia in 2020; however, MMY US wasn't established until it received incorporation in Kentucky in 2023. According to MMY US, they collaborated with another business entity to construct that particular Saudi Arabian building.
WAVE cannot confirm its $6.1 million investment. Although the proof of funds page from MMY US was redacted by the city, internal scoring documents from the city’s contract review team indicated that MMY US did not furnish any financial information to them at all. In response, MMY US claimed they had recently purchased the facility for $2 million last week, which they believe shows their significant financial dedication.
Additionally, according to the most recent filings from 2023 for the British company, the parent firm MMY Global reported having an average staff count of just one person.
Political Connections
"How do you present this to someone with no experience in building modular structures and nothing constructed within the U.S.?" questioned Businesswoman Robin Hall.
Hall has numerous queries regarding Robin Bartram Brown and MMY US. They connected via Hall’s business associate Michelle James back in 2022. With his background in the medical glove industry, they established a firm named Tutum Distribution for their ventures. Keep this name in mind: Tutum Distribution.
"He met with officials, specifically city officials, as well as people involved in legislation," stated Hall.
Hall stated that Bartram Brown utilized her business address to establish MMY US without her consent. MMY US mentioned they cannot provide commentary on this matter as they are contemplating potential legal actions against Hall.
Hall also furnished a letter dated two months following the establishment of MMY US. This letter was addressed to her associate, outlining an agreement between MMY and Tutum Distribution aimed at selling modular constructions rather than medical gloves. James is wedded to Deputy Mayor David James. In his 2024 ethics disclosure, he reported his spouse's professional ties with Tutum Distribution; however, this document makes no mention of any association with MMY. Emails procured by WAVE from the city administration reveal that Bartram Brown initiated talks about benefits with municipal authorities roughly three months post the initial correspondence to Michelle James. Eventually, the firm secured a grant worth half a million dollars on the same date as the mayor's press briefing held in February 2024.
Unmet Job Requirements
"If we manage to achieve that and support this underprivileged community simultaneously, it will be considered a victory," stated Bartram Brown during the press conference.
Last September, the city granted an additional $1.2 million to the corporation for initiating production activities. As part of this agreement, they were obligated to generate employment opportunities with at least 75% coming from three specific zip code areas near the facility located within the Parkland district. According to their most recent submission regarding workforce data to municipal authorities, they currently have a total of 84 employees, including those hired via a short-term labor agency. However, merely four individuals listed on their official payroll hail from the designated zip code regions.
"This is a significant issue, particularly due to the numerous unfulfilled pledges that seem to accompany their failure to deliver precisely what they claim they will," stated First District Council Member Tammy Hawkins, who represents the region containing the factory.
Hawkins mentioned that she was informed generating employment opportunities was crucial, along with providing training programs.
"When a company enters an under-resourced region, training becomes absolutely necessary," according to Hawkins.
In a correspondence with the city, MMY US mentioned they are attempting to increase their workforce from residents of these specific postal areas. They stated that all unskilled roles have been filled but finding qualified professionals remains challenging for them.
"We shouldn't allocate taxpayer money to development initiatives that fail to deliver on their promises," stated Hawkins.
More Taxpayer Money Proposed
Hawkins intends to pose difficult queries as the municipality develops its upcoming budget. The mayor aims to allocate $15 million to the Affordable Housing Trust Fund and specifically named the organization during his budget speech.
"MY US is establishing its initial modular housing production plant in Louisville's Parkland neighborhood," stated Greenberg.
He suggested that the city allocate an additional $1 million for the firm to construct 24 more prefabricated homes across the leftover district councils, despite the initial two sites being unoccupied.
"This suggested budget encompasses financing for a novel modular housing initiative, which will introduce new homes for purchase in areas that have been largely ignored," stated Greenberg.
Response from MMY and the City
MMY US refused an on-camera interview but provided a statement instead.
On April 11, 2024, MMY US Inc. secured the public and competitive Contract #SC00002743 from Louisville Metro Government for their Modular Housing Demonstration Project. All contractual obligations under this agreement have been fulfilled. Currently, production has commenced on the initial prototype house, and we anticipate completing all work by summer 2025. It’s worth noting that the contract includes no clauses regarding confidentiality. During an active project period, we refrain from conducting media interviews. Despite these policies, we take pride in our contributions: currently, we provide employment opportunities to 70 individuals, many coming directly from the West End and some who were formerly without jobs. Additionally, we've successfully rejuvenated what was once a neglected site. Last week also marked the successful acquisition of our new facility through a substantial $2.2 million deal—a strong indication of both our robust finances and sustained dedication towards development efforts within the West End.
The municipality issued a statement indicating:
Since entering the local market, MMY has become a trusted collaborator with Louisville Metro Government. Daily operations at their west Louisville plant focus on delivering affordable housing solutions, which aligns with the priorities of the city’s leadership. Apart from producing single-family modular homes, MMY is actively participating in Family Scholar House initiatives located in Sellersburg, Indiana, as well as within the Phoenix Hill area.
MMY and the Office of Housing and Community Development maintain frequent contact, along with submitting mandatory monthly updates. In June, MMY took over management of four parcels from the Landbank Authority, planning to erect modular residences—the initiative aims to introduce some of the earliest such structures within Louisville Metro. Modular home construction allows significant work to occur off-site before installation. As MMY collaborates with municipal and state authorities on obtaining permits and refining designs, they requested and were granted an extension. Following this approval, they successfully obtained all requisite permissions for developing the initial property plot.
Recently, during a tour of their facilities, representatives from MMY observed that the initial modular home is currently being constructed at their west Louisville location. This project is set to wrap up within the coming months and will then be placed on one of the available plots by summertime’s end. Upon completion, this property will be marketed as an affordably priced residence and will serve as a model for constructing three additional homes going forward.
Requesting an extension is quite common among developers working with Landbank properties. These sites often remain unoccupied or neglected for many years, making redevelopment difficult. Should the buyer keep up their end of the bargain and stay in regular contact, like MMY has done consistently, the Authority might approve such requests when made. However, under certain conditions—such as prolonged lack of communication between the developer and OHCD or outright abandonment—the Landbank Authority could decide to reclaim the property.
WAVE questioned why the LandBank Authority stated that the projects had received approval from the construction review and planning team over a year prior. The city mentioned that these would be the initial modular housing initiatives constructed within the state, thus requiring additional time for further examination.
The council plans to examine the proposals for the Affordable Housing Trust Fund on June 2nd. According to reports submitted by MMY to the city, they aim to construct approximately 1,000 residences within the coming half-decade. They proposed that around $45,000 should be allocated per home to offset expenses. This equates to an annual requirement of about $9 million.
