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Lexington leader press pause — briefly — on new government center down payment

Josh James/WUKY

Lexington city leaders are pumping the brakes on a proposal to move forward with a public-private partnership aimed at shifting the government center to a new location.

City council was prepared to place the new city hall ordinance on the docket Tuesday, but opted to push a vote on the first reading back to Thursday.

We see this opportunity to be able to use taxpayer dollars in a better way going forward.
Jennifer Reynolds, 11 District Councilwoman

While the city began negotiations on the deal with the Lexington Opportunity Fund in April, several residents used the public comment period to note that Tuesday was the first they had heard of the extent of the multi-million dollar project. They questioned whether Lexington has more pressing priorities.

"It's truly out of touch that while our city is hurting, increasing evictions and homelessness, rising housing costs not met with higher wages, growing food insecurity, increased costs of healthcare and more, our city government is now considering spending $30 million on a down payment for a new city hall," one speaker said.

Another acknowledged the building is old and requires a lot of maintenance, but agreed that "now, unfortunately, is not the time to spend our dwindling money on a new building."

A rendering of the inside of council chambers proposed by the Lexington Opportunity Fund
Lexington Opportunity Fund
A rendering of the inside of council chambers proposed by the Lexington Opportunity Fund

Under the proposal, LFUCG would purchase the site and lease it back to the developer for construction. Following the work, the city would enter a 35-year lease with a total cost of around $86 million.

District 11 Councilwoman Jennifer Reynolds said continually patching up the current building is "not a great use of taxpayer money."

"I think we see this opportunity to be able to use taxpayer dollars in a better way going forward," she explained.

Deferred maintenance at the government center's home at 200 East Main Street, the former Lafayette Hotel, is now climbing above $55 million as safety and public access concerns have multiplied — all while a final agreement on a new city hall has eluded administrations and councils for decades.

Council members agreed more time is needed to familiarize residents with the details of the long sought-after plan.

"I think it's appropriate to give the public more time to digest what we're doing and what we're talking about," Councilman James Brown added.

The council is now slated to vote on the first reading of the ordinance Thursday. A Thanksgiving break will push the second reading to December 2.