Imagine Lexington 2045: Theme C, "Creating Jobs & Prosperity"

Theme C

Creating Jobs & Prosperity

April 2023

Lexington is well-established as the Horse Capital of the World, and that title plays a large part in creating jobs and prosperity. There is a storied past, a thriving present, and a promising future associated with the many horse farms that call Lexington home. Many people choose to live in or visit Lexington because of the beautiful greenbelt of farms and the equine-related entertainment, yet there are also a myriad of other draws like the University of Kentucky, Bourbon and Brewgrass Trails, wineries, restaurants, healthcare, schools, and so many other attractions that bring residents and visitors to the area. Many businesses also choose to locate in Lexington for these same livability reasons, and Imagine Lexington seeks to capitalize on opportunities to build on these existing strengths. Lexington is a city with a diverse economy, providing many employment options. That diverse economy is led by the Healthcare and Social Assistance industry, which accounts for the largest quantity of jobs and provides the most payroll tax revenue.

The Retail Trade and the Accommodations and Food Services industries follow with the second and third most jobs, while the Professional, Scientific, and Technical Services and the Construction industries provide the second and third highest payroll tax revenue (County Business Patterns 2020). Maintaining that diversity in industries and occupations, while increasing opportunities for higher wages, will help provide long-term sustainability as markets and the global economy change. Continuing to recruit employers, especially industries with higher paying jobs, will be beneficial to Lexington’s revenue flow and should provide upward mobility opportunities for employees in industries with lesser paying jobs. Lexington continues to appear on “top-ranked city” lists for everything from, “Best City to Buy a House” to “Best City for New College Grads.” It is important for Lexington to leverage this momentum and take the city to the next level as far as desirability is concerned.

During a series of Commerce Lexington community roundtable discussions, local business and industry stakeholders highlighted several economic development challenges as Lexington emerged from the COVID-19 pandemic. The foremost concern being the attraction and retention of skilled employees Many local employers found it difficult to attract a competitive in-person workforce against larger national companies willing to offer work-from-home policies. Employment woes were compounded by a large number of employees retiring or exiting the workforce due to demographic shifts Other factors, such as the rapidly increasing cost and reduced availability of childcare is further constraining the pool of available labor.

In November of 2021, Amazon opened a new 141,000 square foot fulfillment center on Newtown Pike, hiring around 500 full and part-time employees. Clearly the evidence points toward Lexington being poised to take the next step in creating an even more desirable place to live, work, and visit. As more employers look to livability and quality of workforce in their locational criteria, this city will continue to be an attractive option to bring businesses of all sizes and industries to the area.

Summary of Changes:

• Included reference to 2021 Amazon development and employment

• Updated County Business Pattern data

• Updated city media recognitions

AGRICULTURE

Fayette County’s Rural Service Area (RSA) makes up 200 square miles of the 285.5 square mile county. In the Rural Land Use Inventory, Fayette County, Kentucky report (June 6, 2017), by Lynn Roche Phillips, PhD., AICP, and Priyanka Ghosh, PhD., University of Kentucky, Department of Geography, roughly 86% of Fayette County’s rural lands are used for agriculture and more than 50%, or 101.43 square miles, are dedicated to equine only operations (59.2 sq. mi.), and combined equine and crop operations (42.23 sq. mi.). This 2017 inventory resulted in a total of 108,248 acres being utilized for agricultural uses within the RSA.

By land mass, agriculture is the dominant land use in Lexington; it embodies local heritage and provides a world-renowned sense of place, but it is also a key component in the Lexington economy. According to the May 2017 report, The Influence of the Agricultural Cluster on the Fayette County Economy, by Alison Davis, PhD., and Simona Balazs, MS, with the Community and Economic Development Initiative of Kentucky, College of Agriculture, Food, and Environment, University of Kentucky:

“1 out of every 12 jobs [in Fayette County] is directly or indirectly associated with the Ag Cluster.”

“… the Ag Cluster contributes approximately $8.5 million to the local tax base through the 2.25% occupational tax rate.”

“the Ag Cluster generates approximately $2.3 billion in output annually and $1.3 billion dollars in additional income, profits, and dividends.”

The “Ag Cluster,” as defined in this report, includes standard agricultural production impacts, as well as a variety of supporting operations such as feed mills, breweries, private riding schools, tourism, etc. Each of these are vital components of the Cluster and play a role in Lexington’s overall economy. The report provides a comprehensive look at the impacts of this portion of the economy. Another key resource in inventorying and discussing the rural area is the Rural Land Management Plan, completed in 2017 as an element of the 2013 Comprehensive Plan, and

carried over to Imagine Lexington

Nearly everyone equates Lexington with horses, and while horses are not the only thing that define this city, they are a critical component of the economy and a primary driver of why many choose to live in and visit Lexington. Lexington’s picturesque farmland adds to the livability factor that attracts people and businesses to the city. Every effort should be made to ensure continued support of the equine industry.

As important as the agricultural economy is, it is also particularly vulnerable to volatility related to climate change. Agricultural industries will have to adapt as more frequent climate extremes, flooding, drought, and increased temperatures occur, and bring with it reduced production and quality, and more pest and weed problems. The Fourth National Climate Assessment (NCA4) in its chapter on “Agriculture and Rural Communities” finds that as climate change continues in the future, it is expected that there will be reduced agricultural productivity, degradation of soil and water resources, and health challenges to rural populations and livestock. It is ultimately in the best interest of the agricultural community to address and mitigate the land use and transportation factors that lead to climate change, and recommendations for doing so are found throughout Imagine Lexington 2045.

Summary of Changes:

TOURISM

The success and identity of the horse farms and natural beauty of Lexington’s agricultural areas factor high in the burgeoning tourism industry. Equine events and racing, tours of all kinds including: horse farms, pumpkins and corn mazes, the Bourbon Trail, hotels, and restaurants are some, but not all, of the ways agriculture is connected to tourism and the overall Lexington economy. In particular, the horse farm tours are increasing; one company, Horse Country Inc., has many tours to choose from, including horse farms and equine related facilities, such as an equine hospital. In the past, many had remarked about the general public’s lack of accessibility to the iconic horse farms. Whether real or perceived, it was a barrier to drawing tourists and locals alike to experience the inner workings of these operations, and contributed to an atmosphere of inaccessibility and disconnect between urban Lexington and the rural area. New endeavors such as Horse Country have come online recently to bridge the gap, and have made huge strides.

In addition to the increased access to horse farms, tourism has been boosted by both bourbon distilleries and craft breweries that have been growing in both number and popularity. These have manufacturing, agricultural, retail, and entertainment components, and have proven to be a big draw to both Lexington and the Bluegrass Region. The Bourbon and Brewgrass Trails take visitors through Lexington’s scenic roadways; many have said that it is as much about the journey as it is the destination. Yet another reason protecting the Rural Service Area is important is for economic, as well as historic, and cultural purposes

At the state level, the Kentucky Department of Agriculture’s Kentucky Proud program continues to innovate ways to promote local food production by supporting Farm to Fork events. These programs are charitable events intended to further showcase locally sourced and grown products and the larger overall Farm to Table initiatives.

Summary of Changes:

• No substantive changes

• Included information on Department of Agriculture programs

EMPLOYERS & INDUSTRIES

The top 10 employers in Lexington each employ at least 1400 individuals totaling 50,423 employed. Approximately 36.68% of Lexington labor force work for entities employing 250 or more. The University of Kentucky, combining the school and UK healthcare facilities, is the single largest employer in Fayette County. The medical industry, including Baptist Health and Shriners Hospital, provide the next largest pool of educated professionals within the Urban County. As a city that is tied to the educational and medical industries, Lexington has the advantageous position to draw a talented and educated workforce from outside the community, while also providing a young, homegrown employment pool.

Retaining, supporting, and growing large employers is essential to maintaining Lexington’s vibrant economy, but it is also imperative that Lexington be an incubator for small businesses in emerging sectors and allow those businesses to grow locally The majority of the local workforce (63 32%) are employed by smaller businesses, which underscores the need to support these enterprises, and create an environment where entrepreneurs can thrive. Fifty percent of the small businesses with fewer than 250 employees in Fayette County have only one to four employees. Within Fayette County 93% of businesses have fewer than 50 employees. Many of these smaller businesses grow into larger businesses, and further contribute to the overall economy (County Business Patterns 2020)

While most of the Lexington’s labor force work for businesses that employ fewer than 250 people, loss or layoff from one of the larger employers has a cascading impact on medium and small businesses, specifically those positions associated with retail and service industry Greater than 26% of Lexington’s population work in the retail and service industry, which are often the most economically insecure occupations. These positions have also experienced a significant amount of insecurity due to shifts in the retail sales market and changes in social interaction, as a result of the COVID-19 pandemic The symbiotic relationship between all sizes and types of businesses needs to be supported and proliferated so that Lexington can maintain a healthy economic balance, which can weather future economic insecurity

Summary of Changes:

• Modification of older data to include the 2020 Census numbers

• Rewording of a few sentences to focus on economic balance

REVENUE

Lexington City Council Members approved $473 million budget for fiscal year 2022-2023, the largest in the city’s history. This was a significant budget increase of 18% over the previous fiscal year. Sustaining such a large budget as Lexington continues to grow requires a steady revenue. The City’s main source of revenue are Licenses and Permits, Ad Valorem Taxes and Services making up roughly 86% of the revenue from which the city uses to operate. This revenue generated is crucial for general operating expenses and fulfilling the project and programming needs of the city as it continues to improve overall quality of life.

The 2021 US Census Bureau’s County Business Patterns (CBP) shows Healthcare and Social Assistance to be both the leading payroll contributor and employment provider at 48,800 employees. The CBP categories do not include government employment at any level, UK Healthcare and the Veterans Hospital are not counted, indicating an even larger impact on the local economy. In looking at the gains and losses in employment and payroll by industry in Fayette County from 2017 to 2021, Lexington has had a fairly consistent payroll tax revenue stream with a noticeable dip coming during the COVID-19 pandemic. Lexington is almost back at the pre-pandemic levels in both payroll and employment numbers.

Lexington’s population and economy continue to grow as evident from the new budget and the trends indicated on the CBP charts. With an increase in population, housing, and workforce, revenue is expected to go up especially with the revenue collected from the 2.25% payroll withholding and Ad Valorem taxes, licenses and permits and service fees.

Summary of Changes:

• Updated data

WORKFORCE CHARACTERISTICS

In comparing Fayette County to its surrounding counties, Woodford County has the highest median household income; while it is almost $24,000 higher than Fayette County, Fayette has almost 20% more people with a Bachelor’s degree or higher.

Fayette County has a very high educational attainment. The University of Kentucky, Bluegrass Community and Technical College, Transylvania University, and other colleges in Lexington confer around 10,000 degrees each year. According to Commerce Lexington, among cities over 300,000 in population, the U.S. Census Bureau ranks Lexington as the 11th most highly educated in the nation. Even more impressive, 19.3% of the population has a graduate or professional degree, ranking Lexington the 10th most highly educated city.

In Lexington, the labor force participation rate is largely unchanged since 2016, proving stable through the pandemic. Longer term, as a larger share of our overall population retires, labor force participation is likely to continue a slow steady decline. Replacing our workforce with a younger generation will depend heavily on reducing barriers to employment, lowering childcare costs, and improving access to job training and education will become more important

Summary of Changes:

• Updated education and work force data and included pandemic references

PILLAR I

There are a number of reasons why corporations may locate to a city, but according to findings in a 2022 study by the Ohio River Valley Institute, quality of life is strongly associated with higher employment, population growth and lower property rates. Locating in a livable place where their employees will want to reside is key to employee satisfaction; corporate decision-makers are also unlikely to select a location where would be unwilling to spend time. Additionally, recent trends have shown that millennials and young professionals specifically are choosing locations first and then finding employment. Desirable places attract people.

Quality of life is synonymous with “livability.” The American Association of Retired Persons (AARP) has developed a Livability Index for people to measure how livable their community is. Lexington has an overall Livability Score of 57, just barely in the top half of all communities in the country. They consider livability through the lenses of housing, neighborhood, transportation, environment, health, engagement, and opportunity, and gauge access to opportunities in each of these categories.

HOUSING: It is crucial to have the full spectrum of housing options available for those in all phases of life. This means pursuing more compact housing types that constitute the “missing middle” of the housing stock in Lexington, as well as senior housing options that might not already be available, such as accessory dwelling units.

NEIGHBORHOOD: Complete neighborhoods include the full range of goods, services and uses within close proximity. AARP lists two important qualities of livable neighborhoods: access and convenience. They further state that, “Compact neighborhoods make it easier for residents to reach the things they need most.”

TRANSPORTATION: A livable transportation system is all about equitable options. Providing opportunities for people to access their jobs, parks, grocery stores, healthcare, etc., via a variety of modes is key.

ENVIRONMENT: Clean air and water, a robust tree canopy, green infrastructure components, and available open space are all crucial to a livable community.

HEALTH: The welfare and health of Lexington is dependent on the environment and development patterns, as well as medical opportunities for all citizens. Preventative and as-needed healthcare opportunities need to be accessible to residents throughout the city.

ENGAGEMENT: Opportunities for social interaction are crucial for a successful community. Parks and common spaces that facilitate this help to make Lexington a strong city. Communication is the primary way to break down barriers and build community.

OPPORTUNITY: Equity is crucial in making sure that all citizens of Lexington have access to opportunities for quality employment, housing, entertainment, and all facets of the community.

All of the factors above contribute to the overall livability of the city. To the extent Lexington is able to improve in these areas, it will be increasingly successful in attracting world-class talent and employers to boost the economy.

LIVABILITY POLICY #1

ENCOURAGE ECONOMIC OPPORTUNITIES FOR A WIDE ARRAY OF AGRITOURISM WHILE PRESERVING THE BLUEGRASS IDENTITY.

Agritourism is an increasingly important part of Lexington tourism, with the growth of Horse Country, bourbon trail distilleries Boone Creek Outdoors zip line canopy tours, as well as continued interest in wineries. With Lexington’s 2022 acquisition of 33 acres along the banks of the Kentucky River and another 30 acres in 2023 off of Paris Pike, there is greater opportunity than ever for the public to take part in expanded outdoor recreational activities Continued efforts should be made to ensure that the local Fayette County extension office and the Kentucky USDA know about the agritourism uses allowed in Lexington’s rural service area, so farmers are aware of the options they may have for additional revenue streams. These opportunities have the potential to supplement farmers’ primary business operations and may allow some farms to remain viable, where it might otherwise be difficult.

However, these opportunities should be monitored and conditional uses closely scrutinized, using the Rural Land Management Plan (RLMP) as a guide. It is important that tourism uses for the agricultural land do not have a negative impact on the farming practices that are vital to the Lexington economy. It is possible to have a thriving agritourism industry while maintaining the integrity of the agricultural area, and it should be encouraged as a primary component of Lexington’s tourism strategy.

The zoning ordinance for the A-R Agricultural Rural, A-B Agricultural Buffer, and A-N Agricultural Natural Areas zones currently allow several accessory uses that are related to agritourism. Further, tourismrelated conditional uses are currently listed as options in the A-R zone with Board of Adjustment approval; while some are permitted in the A-B and A-N zones, others require environmental approval.

Summary of Changes

• Addition of river park acquisition

LIVABILITY POLICY #2

EMPHASIZE THE PRESERVATION, PROTECTION, & PROMOTION OF THE ICONIC BLUEGRASS LANDSCAPE ALONG RURAL GATEWAYS & ROADWAYS SERVING AS PRIMARY TOURIST ROUTES.

Visitors to Lexington frequently comment on the scenic beauty observed while driving through the rural service area on the way to a destination. Trips to horse farms, distilleries, breweries, outdoor recreation, or any of the other tourist hot spots within Fayette County becomes as much about the journey as the destination. The experience draws people in, and, in some cases, influences visitors’ decisions to locate themselves or their businesses in Lexington permanently.

The map above from the 2017 Rural Land Management Plan (RLMP) shows historic turnpikes, State Designated Scenic Byways, turnpikes and byways, and other scenic roads, as well as scenic view sheds and the Paris Pike Overlay area. The detailed lists of these roads are on pages 82 and 83 of the RLMP.

Gateways identified by the RLMP are shown below, and the recommendations described in pages 87 through 90 of the RLMP should be followed. From the RLMP:

“First impressions for those entering the Rural Service Area should be favorable and lasting, whether arriving at the county line, Urban Service Boundary, interstate or airport. Gateway planning and design should reflect the values of the community to protect the beauty of the rural landscape while welcoming visitors.”

The Rural Land Management Board should continue their work with the Planning Commission to preserve areas of significance, while promoting advancements in agricultural technologies and agritourism that draw both business and tourism into our rural and urban service areas.

Summary of Changes:

• Increased reference to RLMB and agritech

LIVABILITY POLICY #3

PROMOTE SPORTS TOURISM THROUGH THE DEVELOPMENT OF ATHLETIC COMPLEXES & ENHANCE LEXINGTON’S EXISITING FACILITIES

Over the course of the last two decades, sports tourism has become increasingly important economic driver for communities. In 2021, approximately $39.7 billion of direct spending has been documented from amateur and youth sports tourism in the United States, with a total economic impact of $91.8 billion across (Sports Events and Tourism Association 2021). Lexington’s location at the intersection of two major interstates and the centralized location of the City is advantageous to the establishment of state and regional events. The City has already been the beneficiary of state amateur or youth sports tourism, with the Kentucky High School State Basketball Tournament being held annually at Rupp Arena, which has been a major economic contributor to the hotel and accommodation industries, as well as the other tourism offerings within the area.

While public fields and amenities are available within Lexington, privately operated sports tourism developments and public-private partnerships have become more commonplace due to high construction costs. Within Lexington, there are various privately operated facilities for local, state and regional events including the Lexington Tennis Academy, which includes 22 courts, and the newly constructed soccer complex off of Athens-Boonesboro Road, which includes 10 multi-use fields. Future inclusion of other sports or enhancement of existing local or privately owned facilities can foster sports tourism in Lexington and contribute to the economic gains of the community.

While Lexington has a robust network of parks, with associated public sports fields, there is a current absence of facilities located in the eastern portion of Lexington Future public facilities should be planned and constructed to provide public amenities to those in this area, as recommended by the Expansion Area Master Plan and the Parks Master Plan. This area would also be advantageous for regional tournaments, as it is located within proximity to an interstate roadway and has access to numerous amenities, including retail, restaurants, hotels, and medical facilities.

Summary of Changes:

• Broadened the focus to include private entities and enhancement of current sports facilities

LIVABILITY POLICY #4

PROMOTE ECONOMIC DEVELOPMENT THROUGH IMPROVING THE LIVABILITY OF DOWNTOWN TO SUPPORT MORE RESIDENTS AND COMMUNITY SERVING BUSINESSES.

For at least a decade, cities with economic and employment environments similar to Lexington have recognized that attracting new and growing businesses is increasingly dependent on providing high quality of life places to live for workers and customers. Compact, walkable urban cores attract businesses and new residents alike. Providing abundant workforce housing with better access to transit, a problem identified by business leaders in Commerce Lexington roundtable discussions, is critical to supporting the employment needs of businesses. As Lexington’s economic growth increasingly depends on producing and retaining an educated and skilled workforce, our land use policies and zoning regulations must be revised to respond to these critical needs.

For employers, a key driver of higher productivity and wages in large cities is the economic benefit that comes from the geographic clustering of workers and firms in similar industries and sectors. The increased interaction and physical proximity between workers in large cities facilitates the interchange of knowledge and the learning of new skills from each other, which boosts the productivity of local workers. A 2013 project by the EPA’s Office of Sustainable Communities documented, in great detail, the productivity and innovation benefits for businesses that locate within these types of communities. However, for employees, the COVID-19 pandemic radically altered where and how people work. As a result, it has created new opportunities to re-appropriate our urban space, adaptively reuse existing office buildings and steer new development in ways that can continue to attract businesses and employees in the key industrial sectors that will drive Lexington’s growth well beyond 2045. If a greater number of higher paid, higher skilled workers are able to work remotely and choose where they live independent of where their company offices are located, it only further underscores the need to create desirable, amenity-rich areas for people to live.

Summary of Changes:

• Replaced a policy that was too “operations” focused and replaced with a new policy that references the updated Goals & Objectives

LIVABILITY POLICY #5

ENHANCE PROGRAMS & ACTIVITIES BY LEXINGTON’S PARKS & RECREATION DEPARTMENT, & SUPPORT PUBLIC EVENT PLANNING, COMMUNITY EVENTS, & FESTIVALS.

Many of the festivals, parades, and events that Parks and Recreation hold are in the same location each year. Events, festivals, parades, and the like are important in celebrating holidays, cultures, and community celebrations. These activities add to the livability of the city, attract tourists, and provide entertainment options that appeal to people of all ages. Increasing the scope of these events, and even creating a citywide festival, should be considered. The special site needs for these annual events should be supported in planning complementary land uses, such as restaurants and hotels, as well as improving infrastructure such as roads, trail access, lighting, etc.

Summary of Changes:

• Removed exclusive language related to generations

LIVABILITY POLICY #6

ATTRACT & RETAIN A VIBRANT WORKFORCE BY IMPROVING AFFORDABLE HOUSING OPPORTUNITIES, AMENITIES, & ENTERTAINMENT OPTIONS

In 2022, Commerce Lexington hosted a series of business engagement roundtables in an effort to gather the perspective of the business community during the Goals & Objectives public input phase. Though each discussion was focused on a particular sector of the local economy, the topic of staffing issues was universal throughout them all. Employee attraction and retention was top of mind for businesses large and small, citing difficulties with employees returning to the office after the COVID-19 pandemic, competing with large corporations based in other cities for employees that can work remote from anywhere, and university students who leave the market after graduation, among other issues. Additionally, as more and more of the baby boom generation age out of the workforce, employers will have to backfill those positions with employees of a different generation with different priorities and desires.

In order to attract and retain employees and employers, the city must continue to provide more housing options and remove barriers to constructing them. Rising housing costs are a concern for people in Lexington, as they are in cities all across the United States. Recently the Planning Commission and Urban County Council have worked to address some of these issues through revisions to the Zoning Ordinance including increasing allowable floor area ratios in multi-family zones, eliminating parking minimums, adding multi-family housing as an option in the Commercial Center (B-6P) zone, and legalizing accessory dwelling units. Each of these are small pieces to a much larger housing puzzle, and city leaders should keep looking for ways to increase available supply.

An academic article, “Beyond the Jobs versus Amenities Debate: Understanding the Migration of Educated Workers and Implications for Planning”, by Marla Nelson and Renia Ehrenfeucht, delved into understanding why educated workers move to other places and how to retain talent. The study found that economic motivations extended beyond wage and employment differentials. Having meaningful and rewarding opportunities within a culturally rich community were more important, and where compactness of a city creates relatively affordable housing and more accessible amenities, the social networks facilitated from public socializing significantly helped retain talent.

The study also found that many relocated because they were able to find meaningful work, while some that left did so to advance their career because there were limited long-term opportunities in their respective locations. Some workers turned to entrepreneurship in order to remain in the cities that otherwise provided the benefits they wanted. It further indicated that having a diverse, robust economy can attract new workers and help retain talent, and that building on a place’s unique cultural amenities helps recruit and retain workers.

Summary of Changes:

• Updated to reference the Commerce Lexington roundtable discussion outcomes

• Added specific language about housing regulatory reform completed, and added a call for more

• Broadened the policy to be more inclusive than just “millennials” or “young professionals”

LIVABILITY POLICY #7

CREATE A WALKABLE CITY WITH QUALITY TRANSIT THAT IS ATTRACTIVE TO NEW BUSINESSES AND RESIDENTS

A key asset of cities is the relative ease with which people can access a wide range of jobs, goods, services and opportunities for social interaction. People and businesses value city locations for the accessibility they provide. Places that are walkable that have a variety of services and destinations in close proximity to one another are more convenient and lively. The resurgent interest in downtowns and in promoting mixed-use developments throughout metropolitan areas is, in part, driven by a recognition of the value of walkability.

Walkability is important for many reasons; walking to amenities, for errands, and to employment is good for the environment, public health, and personal budgets. Studies indicate that 63% of young professionals and 42% of older adults want in live in areas where they can walk or bike to work, restaurants, and retail. According to Smart Growth America’s “Foot Traffic Ahead: 2016, ” the most walkable urban metros are also the most socially equitable, since better access to employment and lower transportation costs (no car expense) offset the higher costs of housing. That is important because walkable neighborhoods often command higher real estate values, in part, because demand far exceeds supply.

Walk Score is a website that scores neighborhoods based on a formula that assesses a neighborhood’s walkability, bike ability, and multimodal service on a scale from 1 to 100. In essence, Walk Score is a measure of the proximity of a range of typical goods, services, and activities to a particular household. In reviewing local Lexington scores, areas built prior to the automobile, in and surrounding downtown, scored much higher ranging from 85 to 95. Areas outside of downtown, but inside New Circle Rd, average between 50 and 75 in walk and bike scores. However, outside of New Circle Rd, Walk Scores generally drop to the range of 30 to 50. Outside of Man O War Blvd, walk and bike scores hover around 30 or less. These scores indicate our city has become more car-dependent as it has grown, and that many job sites, goods and services require a car to reach them.

In addition to walkability, quality transit service is also important to businesses, particularly those that rely on workers, who rely on transit. Frequent transit service, and short transit travel times, are key to increasing transit ridership and accessibility to jobs. Likewise, providing a mix of land uses and residential housing where it can easily be served by transit, allows residents and workers broader access to jobs, essential services and our community at large. Thus, the Comprehensive Plan seeks to encourage transit-oriented development patterns along our major corridors. This will be studied through comprehensive corridor studies executed through a partnership between Long-Range Planning and the Metropolitan Planning Organization (MPO). To date, plans have been completed for Nicholasville Road and Northeast New Circle Road.

Summary of Changes:

• Updated to better articulate why walkability and quality transit are important for jobs and prosperity (attracting businesses & quality workforce; providing employees better, affordable access to jobs; providing employers better access to employees).

• Updated to note that two corridor plans have been completed.

LIVABILITY POLICY #8

PROMOTE QUALITY OF LIFE ASPECTS, INCLUDING INVESTMENT IN PUBLIC SPACE, AS AN ATTRACTION TO NEW BUSINESSES & RESIDENTS.

Well-designed public spaces, such as parks, plazas, streetscapes, and trail systems attract visitors, spur business development, and create jobs, ultimately promoting economic growth. By creating a vibrant public realm, cities can attract and retain talent, as well as encourage new businesses to establish themselves in the area. Great public spaces also provide opportunities for cultural and artistic expression, which can attract tourists and further promote economic development. Investing in public space can be a powerful tool for fostering economic vitality, improving quality of life, and enhancing the overall livability of communities.

Many new businesses and residents factor the quality of a city’s public spaces when making their company and home location decisions. Well-designed and well-connected regional trail systems are largely well-received by current and prospective residents of Lexington. Lexington’s Legacy Trail system is one such example of a public space that has made major contributions to the quality of life Lexington has to offer. The Legacy Trail is a shared-use greenway trail that connects downtown Lexington with area neighborhoods, small businesses, parks, and historic sites. The 12-mile trail begins at the Isaac Murphy Memorial Garden and winds north to the Kentucky Horse Park.

Another example of Lexington’s strategic investment in public space is the Town Branch Commons Town Branch Commons is a park and trail system that follows the historic Town Branch Creek through downtown. It consists of continuous bike and walking paths, green spaces, and stormwater-managing green infrastructure, connecting downtown to the rural landscape. The project aims to preserve history, connect neighborhoods, and promote sustainability and healthy lifestyles. It is a world-class park with diverse recreational, educational, arts, and environmental programming and is a centerpiece of the community. The comprehensive system is made possible through a public-private partnership between the City of Lexington and the Town Branch Fund.

In addition to its recreational and environmental benefits, Town Branch Commons serves as a transportation network and a huge step forward for the community's public space. The project links the city's two major trails, the Town Branch Trail and the Legacy Trail, providing 22 miles of uninterrupted trail for residents and visitors. Town Branch Commons is a transformative project that combines history, connectivity, and sustainability, making it an essential part of Lexington's urban infrastructure.

Summary of Changes:

• Updated information on Town Branch Commons

• Clarified focus on public space

LIVABILITY POLICY #9

PROMOTE ECONOMIC DEVELOPMENT THROUGH THE PRESERVATION OF STRATEGICALLY & APPROPRIATELY LOCATED INDUSTRIAL & PRODUCTION ZONED LAND.

The creation and recent modification of adaptive reuse regulations was an acknowledgment that many of Lexington’s older industrial zoned sites were no longer suited for modern economic development purposes. As those properties became vacant and dilapidated, it presented opportunities to support the urban core with businesses and residential options better suited for their urban environment. However, it is still critical to provide a base of industrial zoned land, in strategic locations well served by appropriately scaled infrastructure and available transit service. Where sites have existing historically significant structures that can be reused or updated, all care should be taken to do so.

Like the other major economic hubs in the region, Lexington has experienced a significant growth in the industrial and flex space market. Due to the advantageous location of the Urban County at the confluence of two major interstates, Lexington’s 32.2 million square foot industrial market continues to grow. Accounting for demolition and deliveries, net industrial space in Lexington has increased by 3% since 2010. New construction has recently increased, with 474,000 square feet developed across 14 buildings since 2019. Two substantial new tenancies include GE Appliance’s 2021 occupancy of 170,000 square feet and Amazon’s 2022 delivery of 143,000 square feet in their second fulfillment center in Lexington. In addition to those areas that have been constructed, several new projects have approved plans, located near the intersection of Newtown Pike and Interstate 64/75. As new space is added to the market, it has been quickly absorbed by tenant demand. The market has maintained a vacancy rate below 5% since 2013. Increased demand has put upward pressure on rents, which have grown at a CAGR of 3% from $4.66 per square foot in 2010 to $6.85 per square foot in 2022 (Imagine New Circle Road).

While Imagine Lexington is in large part focused on designing places that can accommodate a wide mix of uses, industrial and production land stands out uniquely in that there should be little encroachment by residential land on these areas, and vice versa. Just as important as preserving the industrial land is closely monitoring the adjacent land use development patterns. Appropriate buffering and transitions should be applied so that there can be minimal use restrictions applied on these industrial properties. It is important that production land remain flexible and wide-ranging in the uses allowed. The vast majority of heavier industrial and production uses are not suited to be within close proximity to residential and retail areas.

Other common themes of Imagine Lexington are still very much a factor in future industrial and production growth. These areas should pay special attention to their design features as well as potential impacts on the surrounding environment. In meeting and discussing issues with industrial business owners, transportation for their workforce was identified as a serious hurdle they have to find unique ways to overcome. Many of the problems identified have their origins in the initial site design and location of the industrial corridor in which they are located. While multi-modal transit infrastructure is not typically associated with industrial development, it is important to consider how employees might get to industrial and production developments. Full multi-modal infrastructure is an important consideration of new development

All new development and redevelopment proposals should consider other design elements so that all industrial land can be as efficiently used as possible, thus ensuring there is growth potential for the future. Minimizing parking, appropriate landscaping and providing ample connectivity are all a part of taking a strategic approach to economic development areas.

Summary of Changes:

• Acknowledged update to Adaptive Reuse regulations

• Updated data associated with industrial development

PILLAR II DIVERSITY

There is strength in diversity, and Lexington is experiencing an increase in diversity within both the population and the workforce. This is evidenced by a growing share of people of color, more women entering the labor force, and greater participation and visibility of LGBTQ+ individuals in the economy. As a result, companies that adopt and promote diversity are gaining a stronger position in the marketplace relative to their counterparts.

Diversity in Lexington's employment opportunities and industry types can provide economic resilience to the community. This is similar to the concept of a diversified investment portfolio, where the overall performance can meet expectations even if one investment should falter. If the economy were solely focused on one industry, it would lack this resiliency, making it vulnerable to economic downturns. By having a diverse range of industries and employment opportunities, Lexington can reduce economic risk and ensure greater stability in the long term.

To this end, Lexington has 36 companies with over 250 employees, yet 63% of the city's workforce is employed by smaller businesses. This means that Lexington has diversity in industry type but also in company size. Large employers like the University of Kentucky are crucial in providing a stable foundation for the economy, given that they employ 15% of Lexington's workforce. However, it's equally important for Lexington to continue fostering a variety of smaller businesses that offer different employment options. When small businesses are nurtured and encouraged, they have the potential to grow and become the foundation for larger corporations in the future.

A variety of business sizes and models leads to a diversity of occupations, providing individuals with more opportunities to pursue their desired career paths and promoting equitable access to upward mobility. With a range of available jobs, people from all backgrounds and demographics can gain new skills and progress towards economic success. This can help reduce economic inequality by providing pathways for advancement to those who have been previously excluded from certain fields. Facilitating this upward mobility requires providing training and education opportunities, especially for vulnerable populations who may have grown up in poverty, have disabilities, or are returning to the workforce after rehabilitation or incarceration.

Moreover, a diverse range of occupations fosters healthy competition among employers, encouraging them to offer better wages, benefits, and career advancement opportunities. This can benefit employees across different occupations, particularly those in lower-paying jobs who may have been historically excluded from upward mobility. As a result, a diversity of occupations can lead to more equitable access to upward mobility, helping to create a more just and inclusive society.

While a diversity of occupations can provide the foundation for upward mobility, workplace Diversity, Equity, and Inclusion (DEI) practices can help to build upon this foundation by promoting a more inclusive and equitable work environment that fosters growth, innovation, and career advancement opportunities for all employees. By embracing diversity in the workplace and creating inclusive cultures, employers can attract and retain a diverse range of talent, which can lead to a diversity of ideas and perspectives. This, in turn, can lead to greater innovation and productivity, ultimately driving business growth and success.

Increased diversity,in the population and workforce, is not only desirable, but it is essential to the economic strength of a city. The benefits of workplace and workforce diversity are undeniable, as it fosters innovation, increases consumer demand, provides access to a wider talent pool, promotes greater cultural exchange and understanding, and leads to the economic advancement of historically marginalized groups. Therefore, it's critical for cities like Lexington to prioritize diversity and inclusion in all aspects of their community, including the workplace, to ensure long-term economic success and growth.

Summary of Changes:

• Rewritten to reflect the changes in diversity within workforce, employment, and population

DIVERSITY POLICY #1

CREATE OPPORTUNITIES FOR INCUBATORS. SEEK INCENTIVES FOR OWNERS OF VACANT OFFICE/LABORATORY SPACE, & FOR DEVELOPERS WHO BUILD INCUBATOR SPACE FOR STARTUPS & FOR GROWING BUSINESSES.

Lexington needs additional space to encourage more startup businesses, as well as for startups who have outgrown their original space. As new ventures, there are barriers that these young companies must overcome, such as a lack of credit and a need for mid-level space of about 1,000 square feet or larger. Some companies engaging in research and development may require more specialized and larger (around 5,000 square feet) spaces with water, hoods, etc., while some only require Wi-Fi and a small space to occupy. New modern co-working spaces like Base 110 in downtown Lexington provide flexible office space with shared common areas for like-minded professionals to work and collaborate. Additional similar creative working spaces should be pursued to encourage entrepreneurs and new small businesses.

University of Kentucky’s on-campus business incubator, Advanced Science & Technology Commercialization Center (ASTeCC), houses new and rising technology based companies located within the engineering complex. ASTeCC has 80,000 square feet and was funded by the Economic Development Administration and Small Business Administration. It currently has about twenty-five companies, twothirds of which are owned by UK faculty; the rest are from out of state. Sixty-two companies have ‘graduated’ from ASTeCC since it began in 1994. The companies have access to other shared-use facilities on University of Kentucky’s campus, such as the Electron Microscopy Center, Center for Nanoscale Science and Engineering, and Mass Spectrometry Facility.

The Bluegrass Small Business Development Center (SBDC) serves Fayette and 14 other counties in the region. The Bluegrass SBDC helps make dream businesses come true by providing business consultants to assist with strategic market research, access to capital and loan packaging assistance, business and strategic plan development, and analysis and start-up assistance, among other services. The consulting is free of charge. Commerce Lexington assists in placing businesses, not only on new sites, but also in all types of existing buildings.

Commerce Lexington keeps an inventory of available locations and works with businesses and other agencies to place businesses looking for space to rent. Landlords of large professional office spaces may be hesitant to divide up those spaces to accommodate a business looking for smaller footprints. However, there is an abundance of vacant office options of many sizes throughout Lexington.

Summary of Changes:

• Updated ASTeCC data

DIVERSITY POLICY #2

ENCOURAGE A DIVERSE ECONOMIC BASE TO PROVIDE A VARIETY OF JOB OPPORTUNITIES, ALLOWING UPWARD MOBILITY FOR LOWER INCOME RESIDENTS OF FAYETTE COUNTY.

When looking at the mix of employment in Lexington, excluding government jobs, the top three industries with the most employment were Healthcare and Social Assistance, Retail Trade, and Accommodation and Food Services. The average employee income for Healthcare and Social Assistance was just below the median level income at $56,929; whereas the average income for Retail Trade, was $28,109; and the average income for Accommodations and Food Services was $15,460, which were both well below the City median level income. While there are opportunities within each of these industries to advance to higher paying jobs, individuals within these industries have a more difficult time achieving economic security. The impact of having an economy that is heavily skewed toward lower paying positions it that individuals and families are forced to choose between necessities like housing, food, or medicine. This is not only a problem for the employees and their families but can result in the City needing to be more involved in the social services sector. Lexington should focus on providing a livable wage for everyone. (CBP 2020)

Additionally, while unemployment remains low in Lexington, it disproportionately impacts minority populations. Lexington’s workforce development efforts located in the Charles Young Center in the city’s East End, are focused on providing job training, and connecting people with local employers. Expansion of these programs to additional disadvantaged communities in Lexington is planned over the next few years.

Funding and support for research and development campuses should continue to be a priority, as they attract high-paying jobs and new talent, help retain local talent, and create spaces for incubator businesses. Collaboration should continue between the City, the University of Kentucky, and Commerce Lexington to seek capital investment in this sector.

Summary of Changes:

• Updated wage figures

• Included workforce development context for unemployment numbers

• Included livable wage reference

DIVERSITY POLICY #3

SUPPORT FULL FUNDING & ADEQUATE STAFF FOR THE MINORITY BUSINESS ENTERPRISE PROGRAM (MBEP) WHICH INCREASES DIVERSIFICATION OF CITY VENDORS THROUGH PROMOTING AN INCREASE IN MINORITY, VETERAN, & WOMEN-OWNED COMPANIES DOING BUSINESS WITH THE CITY.

Minority, women, and veteran owned businesses are underrepresented in Lexington, and the MBEP, as well as other agencies, are making efforts to help lessen this disproportion. The Minority Business Enterprise Program is in place to help minority, women, and veteran owned businesses participate in the city’s procurement process. The success of diverse businesses is vital to the community because they contribute to the overall success and economic viability of Lexington.” Lexington’s Central Purchasing division processes millions of dollars of purchasing contracts for the city of Lexington. The city has established a combined “Ten Percent Goal Plan” to increase the number of minority and women owned businesses, and a “Three Percent Goal Plan” for veteran owned businesses in the Diverse Business Management System powered by B2GNow. In addition, the MBEP offers a long list of services to assist minority, women and veteran-owned businesses including, but not limited to, events for networking, classes on the procurement process, assistance with certification, training programs, communications about bid opportunities, and individual appointments.

In 2020, Urban County Council approved funds to conduct the first Disparity and Availability Study. The disparity study is a result of recommendation #2, from the Economic Opportunity Subcommittee from the Mayor’s Commission on Racial Justice & Equality report in 2020, “issue a disparity study to determine if there is disparity between the availability and utilization of MBE firms.”

The purpose of the study was to analyze the availability of DBE’s, minority and woman-owned businesses in the Lexington –Fayette County area and to assess whether DBEs and minority- and woman-owned businesses face any barriers as part of LFUCG’s contracting processes.

Information from the study will help LFUCG assess its efforts to encourage DBEs and minority- and woman-owned businesses to bid on the agency’s contracts and help inform what, if any, improvements are needed to optimize LFUCG’s contracting processes and the MBE Program. The study was conducted by BBC Research and Consulting, LLC (BBC) and completed in 2022. As part of the disparity study report, BBC presented 10 recommendations to remedy observed disparities, refine the City’s procurement processes, and enhance the Minority Business Enterprise Program. To access and view the full report, visit the City’s disparity study webpage, Disparity study | City of Lexington (lexingtonky.gov).

Summary of Changes:

• Incorporated reference to Mayor’s Report on Social Justice and Equality

• Includes recommendations from the recently completed Disparity Study

DIVERSITY POLICY #4

ENCOURAGE TRAINING, PROGRAMS, ACCESS, & INCLUSION TO EMPLOYMENT OPPORTUNITIES

Access to employment and a livable wage is a necessity for any resident of Lexington. Whereas many of the industries that are established within Lexington seek to draw individuals from the well-known postsecondary institutions (UK, BCTC), there are a growing number of programs that are focused on providing training and access to those who might benefit from different educational and training opportunities. While ensuring access to opportunity for everyone in Lexington is important, ensuring those who are experiencing challenges with or barriers to employment due to illness, addiction, or prior conviction should be promoted Those who experience challenges to employment are more likely to face periods of instability, including relapsing, homelessness, or lack of necessary health care. Preventing such situations is important not only from a humanistic/moral perspective, but also a social and financial perspective.

The Opportunity for Work & Learning (OWL) is a non-profit organization that has helped over 26,000 people since 1961 to overcome mental and physical disabilities or prior incarceration to achieve growth in their personal, as well as professional lives. OWL offers individualized support and programming, including practical occupational training, such as customer service and fork lift certifications. Their services extend to eleven counties. OWL also owns the for-profit Lexington Manufacturing Center (LMC); many of the participants in the OWL program are hired by LMC.

The Workforce Recruitment Program for College Students with Disabilities (WRP) is a free resource that connects private businesses and federal agencies nationwide with qualified job candidates for temporary or permanent positions in a variety of fields. Applicants are highly motivated postsecondary students and recent graduates with disabilities who are eager to prove their abilities in the workforce. Through WRP.jobs, private employers interested in gaining access to these individuals can post permanent and temporary positions. WRP participants can then search and apply for these positions using an employer's standard application processes.

Another company helping to remove barriers to second-entry employment is DV8 Kitchen, a ‘fast-casual restaurant and bakery’ started by the owners of the Saul Good restaurants in Lexington. The company provides fresh, natural food designed to “change your life.” According to Rob Perez, one of the owners of DV8 Kitchen, there are barriers to people trying to make a second-entry into the workforce after addiction or incarceration. Some of the employers do not want to pay for training for what they think will be short term employment, they worry about provision liability for workman’s compensation coverage (even though it is already figured into liability insurance), and they have practicality issues. Mr. Perez believes an employee certification program would alleviate many of these barriers by providing such things as required weekly drug tests, counseling, 12-step programs, etc. He also indicated a need for government incentives to educate employers about providing opportunities for jobs for these members of society, as opposed to precluding them from employment entirely. The DV8 Kitchen’s goal is for one-third of their staff to be second-chance employees. Imagine Lexington advocates for encouraging employers to provide job opportunities, returning hope to members of society who are struggling to recover from past circumstances.

Additionally, to help remove barriers to employment from felony records, the 2016 General Assembly passed House Bill 40, which provides for a process that permits application to have a Class D felony conviction expunged. Clean Slate Kentucky has resources to help people expunge their criminal records, both misdemeanors and Class-D felonies. Every opportunity to spread the word about this program and increase participation should continue to be explored and expanded.

Lexington has sought to be a leader in helping individuals expunge past misdemeanors and non-violent felony convictions during the Clean Slate Expungement Clinic and Job Fair. In the spring of 2023, Lexington held the second annual clinic, which provides free legal help through Legal Aid of the Bluegrass and private lawyers. During the first clinic, held in April 2022, greater than 400 individuals attended and approximately 200 individuals were able to have the records expunged. Individuals who have gone through the expungement process are better able to shed the stigma associated with prior convictions and can have greater opportunities to the job market.

Summary of Changes:

• Updated language to include two new programs

DIVERSITY POLICY #5

MAXIMIZE CONTEXT SENSITIVE EMPLOYMENT OPPORTUNITIES WITHIN THE OPPORTUNITY ZONE TRACTS, PROVIDING EQUITABLE COMMUNITY DEVELOPMENT, & PRIORITIZING LOCAL RESIDENTS FOR ADVANCEMENT OPPORTUNITIES.

Established by Congress in 2017, the Opportunity Zones program allows investors in certain communities to qualify for preferential tax treatment. The primary goal of Opportunity Zones is to drive economic development, as they have the potential to catalyze growth in the local economy and the job market resulting from the influx of investor funds. By encouraging investment from people both in and outside of the target area, Opportunity Zones create positive growth and development that can aid in elevating distressed and historically marginalized neighborhoods, while simultaneously promoting community-wide connectivity and partnership. For more information on Opportunity Zones, individuals should look to Treasury.gov and IRS.gov.

Lexington’s Opportunity Zones are located in some of Lexington’s older areas within New Circle Road. The placement of Opportunity Zones has been criticized for being situated in areas that have been historically marginalized by governmental, banking, and investment entities and not focusing investment on those individuals who are long standing residents in those areas. To allow for the greatest economic impact on Lexington’s local economy, the government should partner with banking institutions and development groups to promote local investment in Opportunity Zones, specifically focused on promoting business creation and expansion opportunities to those who have been historically rooted in Opportunity Zones. Supporting and coordinating different tax incentive programs can add to the vitality of financial support for these programs.

Within the Opportunity Zones there are some small to medium vacant properties within the areas, but the majority of the development potential will be the adaptive reuse of existing buildings. This should provide opportunities for creative place making that will enhance the existing neighborhood while respecting the historical context of a neighborhood. The location of the Opportunity zones within Lexington are also advantages as they allow the opportunity to provide new employment prospects within areas that are denser and more walkable, bikeable, or are located along a transit route.

Whereas Adaptive Reuse Projects within the Urban County are largely associated with industrial land uses, the Division of Planning should work with community members, the Historic Preservation Office, and the administration to review landmark status for socially important structures, which can be adaptively reused for mixed-use development.

Summary of Changes:

• Added context about Opportunity Zones

• Adds reference to adaptive reuse

DIVERSITY POLICY #6

INCREASE FLEXIBILITY ON TYPES OF HOME OCCUPATIONS ALLOWED.

The advances in communication and information technology, especially the impact of home computers and the internet, allow for more mobile businesses and working from home. Eliminating the commute to work, avoiding the cost of leasing or owning space for a business, and being near loved ones are among the reasons that make working from home attractive.

As documented by the U.S. Census Bureau’s report, Working at Home is on the Rise, the number of home-based workers increased by 4.2 million between 1997 and 2010. This first big boom in work from home occupations was spurred by the disruptive shifts in technology, as well as the growth of infrastructure that allowed workers to access daily activities without the commute. Work from home situations were further solidified by the emergence of COVID-19, which forced companies and employees to change the way business was done and the traditional office setting. The 2021 American Community Survey, by the U.S. Census Bureau, shows that, between 2019 and 2021, the number of home-based workers tripled from 5.7%, or roughly 9 million people, to 17.9%, or 27.6 million people, in the United States. In Fayette County, home-based workers increased from 4.4% of county working population in 2019 to 13.7% in 2021 This growth of home-based workers has also impacted surrounding counties, including Madison County, which experienced an increase from 4.5% in 2019 to 8.4% in 2021.

While the shift to home-based work environments can have positive effects on the environment, lessening emissions and decreasing single occupancy vehicular miles traveled, there are adverse effects on localized economies, specifically downtowns, where the greatest concentration of offices in Lexington are located. The shift to home-based work environments also necessitates the greater review of the at home needs of a working population. Ensuring adequate infrastructure, mitigating adverse impacts on residential environments, and ensuring the legal framework is available for greater utilization of residences.

Lexington‘s Zoning Ordinance allows home occupations as an accessory use in its agriculture zones and as a conditional use in other zones and home offices as an accessory use in many zones. Technology, services, and products are continually changing, so reviewing and updating the Zoning Ordinance, especially the definitions for home office and home occupation, would be advantageous for Lexington’s economic development to ensure as many types of home offices and home occupations may be incorporated as can be suitable and compatible.

Despite the endemic shift of COVID-19 and policies focused on getting employees back into office settings, many of the shifts to work from home, either full-time or part-time are here to stay. Lexington must be ready for the next 20 years of change.

Summary of Changes:

• Updated work from home data

• Making recommendations for continued update of home occupation and home-based businesses

PILLAR III PROSPERITY

Thriving communities achieve prosperous economies in a number of ways, including attracting new businesses, taking care of existing companies, developing a highly-skilled local workforce, being imaginative and creative with existing land and facilities, finding available land for new economic development activity, and attracting a young and enthusiastic workforce. A multifaceted approach is necessary because local economies are complex, with many moving pieces that each require different levels of attention, and specifically tailored solutions.

Attracting new businesses: In addition to the livability factors mentioned earlier that are increasingly important for bringing in new businesses, incentives also play a role. It is important, especially in a progressively more competitive market, to provide the “icing on the cake” that may eventually win Lexington the deal. Incentives are not normally a primary factor for a business deciding to locate into a particular market, but they certainly can be a separator in a very close competition. Any federal, state or local incentives that can be leveraged should be, as studies have shown that economic development land use has a much higher dollar per dollar return on investment than residential land uses that consume more services and pay less tax.

Taking care of existing companies: Retaining an existing corporation is clearly not as flashy and does not grab the headlines quite like landing a big new business, but economic development professionals will tell you that is a huge part of their job. Lexington cannot take for granted the investment these existing companies already have in the community and the City needs to do whatever they can within reason to ensure they are prospering and getting what they need.

Developing a highly-skilled workforce: This is of critical importance for both of the headers above. The number one reason listed for why companies choose to locate in a specific area is because of the presence of a highly-skilled workforce. It is also vitally important for the existing companies to be able to fill the open positions they have. Efforts to match college and vocational school students’ curriculum to specific local employment needs would be mutually beneficial for the students, the employers, and the City. Concerted efforts should also be made to train lesser-skilled employees and vulnerable populations to allow them to achieve more financial stability.

Being imaginative and creative with existing land and facilities: As Lexington continues to urbanize and develop, it is becoming more of an infill and redevelopment community. There are many opportunities to utilize existing space for economic development purposes, whether that be adaptive reuse, flexible parking arrangement, shared office space, or redevelopment of underutilized property. It is important that these always be the first options when looking to accommodate a new or expanded business.

Finding available land for new economic development: Economic development professionals often say there is a lack of inventory for larger clients who may want to locate to Lexington. The creative 250-acre land swap between UK and the City of Lexington should help to alleviate this issue and allow prime development land to be controlled by the city. The Coldstream campus (“Coldstream”) is home to the 200-acre Legacy Business Park as well as the 50-acre business development site, both located at the junction of I-75 and I-64. The Master Plan for Legacy Business Park contains approximately 135 acres of developable land across 13 parcels ranging from 8 to 21 acres in size. Parcel boundaries are intended to be flexible, and can accommodate a wide range of uses. A total of 45 acres are dedicated to open space

that connects to the existing 22-mile connected bike and pedestrian trail, and the final 20 acres are dedicated to infrastructure for the project. Infrastructure improvements are currently underway, and the City is actively marketing the property. This is important land, which will bring in higher-paying jobs that will benefit the community.

Attracting and retaining a vibrant workforce: Creating a livable city is an important part of attracting a vibrant workforce. Lexington has a unique culture that can be expanded through branding opportunities. The beauty of the horse farms and the juxtaposition of urban and rural are attractors that ought to be protected and valued. They play a large part in creating a prosperous Lexington.

Prosperity for all: As Lexington seeks to improve the overall economy and attract high-paying jobs, it is critical to provide opportunities for everyone to succeed. Economic mobility should be improved, and health and socio-economic issues addressed. Increased opportunities for workforce development, breaking down barriers to home-ownership, addressing food deserts, and improving access to quality social services will all serve to increase prosperity and equity throughout Lexington.

Summary of Changes:

• Updated information to include the Legacy Business Park

• Acknowledged changes in the Goals and Objectives regarding upward mobility within the job market

PROSPERITY POLICY #1

PROMOTE HIRING LOCAL RESIDENTS, & RECRUIT EMPLOYEES LIVING IN AREAS OF CONSTRUCTION PROJECTS.

Hiring workers that live in the vicinity of a construction project builds a sense of ownership and empowerment in community development. It also allows some workers to walk or bike to work. If there is a lack of training, working with local agencies and training programs to get workers trained before construction begins would increase economic sustainability of the area and its residents. Projects involving special financing, such as Tax Increment Financing(TIF), have to meet certain conditions to qualify for the financing; those conditions include 40% of the households being of low-income.

The Building Industry Association of Central KY has started a Building Institute of Central Kentucky to train workers in certified Trades programs in HVAC, Plumbing, and Electrical Students completing their program are eligible to take state licensure tests.

Summary of Changes:

• Removed Opportunity Zone reference

• Updated BIA programs

PROSPERITY POLICY #2 SUPPORT CONTINUED FUNDING FOR ECONOMIC DEVELOPMENT

The cost of development across the county has been a limiting factor in the development of new jobs. Not only are the costs of materials for construction of new facilities increasing, but the need to pay employees livable wages has forced businesses to either slow growth or remain small. In efforts to alleviate the cost of development, provide public amenities, and ensure a livable wage, Lexington provides various incentives for new and current businesses.

One such opportunity is the Economic Development Grant to help with “funding projects that will positively impact economic and workforce development in the City of Lexington.” The funding will be used for training/ retraining, entrepreneurial support, employment re-entry, work-based learning and/or skills certification scholarships, and/or potentially other services related to economic development. The economic development grant is in its fifth year of funding.

Another incentive provided by the Lexington-Fayette Urban County Government is the Jobs Fund, for which businesses may apply in return for a commitment to creating and retaining a minimum number of jobs for a particular time period. Priority is given to those businesses involved in advanced manufacturing, technology, professional shared service operations, or healthcare. Industrial revenue bonds are also available for application through the Economic Development office for the City of Lexington. Currently, 29 companies are taking part in the program, and promotes a minimum average salary of $24 per hour.

Additionally, the City established the Lexington Public Infrastructure Program in 2022, with a kick-off of the incentive program in January 2023. The program is meant to assist in the development of infill and redevelopment projects within the Lexington Urban Service Boundary that lead to long-term job creation. The Program specifically targets projects that are redeveloping underutilized sites, infilling vacant properties, are providing a mixture of land uses, or are directly providing jobs. The program provides 0% interest loan for a term not to exceed 10 years, to assist applicants in ensuring the public infrastructure portion of the overall development project is completed for the public benefit and would not have occurred “but for” the program funding. The maximum amount of individual project funding will not exceed the lesser of $500,000 or 10% of total project costs including private and public costs.

Finally, in 2018 Lexington established an Energy Project Assessment District (EPAD) which allows applicants to access financing for energy saving projects. The EPAD authorizes local governments to establish programs to advance the conservation and efficient use of energy and water resources within their jurisdictions, by allowing for energy projects to be financed by voluntary assessments imposed upon the real property being improved through energy projects. The associated PACE financing covers 100% of hard and soft costs of an energy project for either commercial or residential projects. The financing of projects alleviates some of the costs to applicants, while also promoting more sustainable development within Lexington.

Summary of Changes:

• Addition of new funding sources

• Deletion of inactive funding sources

PROSPERITY POLICY #3

CONTINUE TO PROTECT THE AGRICULTURAL CLUSTER & EQUINE INDUSTRY, & SUPPORT EXISTING AGRICULTURAL USES, WHILE PROMOTING NEW INNOVATIVE AGRICULTURAL USES IN THE RURAL SERVICE AREA.

Before the beginning of the 21st century, with world-renowned soils and the risk of losing farmland to large lot residential and other development, Lexington started a Purchase of Development Rights (PDR) program. The program has been in existence for nearly 20 years, with PDR easements protecting farmland for food security and for conservation of environmentally sensitive lands. Currently, 25% of the Rural Service Area (33,157 acres) is protected by PDR easements, with a stated end goal of 50,000 total acres, or 39% of the Rural Service Area, to be protected. Fayette County has committed millions to pay for PDR easements, which protects soils for the future. According to Beth Overman, Director of the PDR Program, most of the PDR easements are equine farms. These famous soils in the Rural Service Area, with many acres protected by PDR, provide nutrients that grow vigorous crops, as well as healthy, strong horses, cattle, and other livestock.

Bluegrass soil produces quality racehorses, which result in big purchase prices. Keeneland sales in 2022 were just under $700 million and the strongest since before the 2008 recession While sales dipped in 2020 during the Covid-19 pandemic, total sales since 2018 remained strong, indicating a continued interest in the racing and breeding sectors of the equine industry. Continued interest in the equine industry is also reflected in the expansion of tours hosted by Horse County and the expansion of activities at the Kentucky Horse Park.

Another driver of the agricultural economy in Lexington is The Bluegrass Stockyards, founded in 1946. The Bluegrass Stockyards’ Lexington facility, located on Iron Works Pike, was built after the company’s original Lisle Industrial Avenue facility was destroyed by an accidental fire in January 2016. Bluegrass Stockyards employs about 50 people at the Lexington location; the company also currently operates seven live sale locations and an internet sale system, with a total employment of over 200.

The Lexington market “will handle $200-$250 million in business annually,” and sells 100,000- 125,000 heads of cattle a year, with the entire network of seven live sale locations and internet sales selling about 500,000 heads of cattle annually, collectively. The Bluegrass Stockyards will handle over $600 million in transactions overall, with a customer base from 90 counties in Kentucky and eight surrounding states. Hogs, goats, and sheep are sold at other locations outside of Lexington.

The Kentucky Commissioner of Agriculture, Ryan Quarles, supports expanding Kentucky’s diverse agricultural portfolio to include industrial hemp, hops, and other crops. Kentucky Department of Agriculture has an Industrial Hemp Licensing Program, which is authorized by state and federal law. The Agriculture Improvement Act of 2018 (2018 Farm Bill) authorized the production of hemp and removed hemp and hemp seeds from the Drug Enforcement Administration’s (DEA) schedule of Controlled Substances. Individuals and businesses that wished to be considered to join the Hemp program to grow, handle, process, or market hemp were required to apply for a license by established deadlines. In 2021, 140 processors/ handlers obtained licenses in the KDA Hemp Program, which began in 2014. In 2021, there were 1,800 acres planted, with 1,700 acres harvested. While hemp production spiked sharply in 2019, it just as quickly saw a swift decline as 48 states passed legislation regulating the crop as a

consumer product. The national rush on hemp products far outpaced demand and as analysis by UK’s Center for Business and Economic Research indicates, hemp is likely to remain only a minor factor in Kentucky’s overall agricultural economy.

Summary of Changes:

• Removed information about defunct programs

• Updated information on hemp production

PROSPERITY POLICY #4

ENCOURAGE INSTALLATION OF FIBER-OPTIC BROADBAND INFRASTRUCTURE FOR HIGH-TECH & OTHER INDUSTRIES.

Nearly every aspect of modern society is becoming increasingly web-dependent, and like the Interstate highway system connects communities, digital broadband infrastructure is essential for any 21st century community to thrive in areas of commerce, health, education, entertainment, and government. Broadband fiber, also known as fiber optic cables, transmit huge amounts of data, literally at the speed of light.

KyWired, a public-private partnership, is positioning Kentucky to be a national leader in high-capacity internet service connections and is in the process of providing the backbone of the service lines to all 120 counties. Improved internet service will promote economic development, enhance education and research capabilities, ensure public safety, improve healthcare delivery, and augment connectivity for libraries and communities across the Commonwealth. KyWired’s work is still in progress in Fayette County.

At the national level, the Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law, represents a historic step forward toward the goal of providing broadband access to the entire country. The IIJA sets forth a $65 billion investment into broadband, with an emphasis on unserved and underserved areas, as well as community anchor institutions including schools and libraries.

Lexington has quietly been building a fiber-optic network over the last 30 years to service its traffic operations and signal timing system, and that long-term investment has positioned the city to be ready for the next wave of smart technologies, generally referred to as the Intelligent Transportation Systems (ITS). As cities become smarter, and with a future of connected vehicles and self-driving cars, the digital infrastructure will allow streets to function more efficiently, such as traffic signals that adapt in real time to amount of congestion on the street. This is just the beginning of the potential benefits that high speed digital infrastructure will bring to Lexington.

MetroNet has a franchise agreement with the City to install fiber-optic network inside the Urban Service Area boundary, making gigabit speeds available to nearly all residences and businesses. Gigabit speeds move data at 1,000 megabits per second. MetroNet began its construction in Lexington in January of 2018 in the northeastern part of the city, and began providing service to its first customers in late summer of 2018. While the majority of the buildout has been completed, it is still imperative for the continued build out and potential expansion outside of the Urban Service Area. The needed shift to a more technologically connected community only became more apparent during the COVID-19 pandemic and will become more important as we seek to have a more robust and efficient agricultural industry.

Summary of Changes:

• Updated to add information on broadband infrastructure funding that is being provided through the Infrastructure Investment and Jobs Act.

• Updated to reflect advancements in the last five years

PROSPERITY POLICY #5

CONTINUE TO RAISE AWARENESS OF FARMS & FARM TOURS.

VisitLex’s 2018 Visitors Guide and the VisitLex website are packed with information about attractions, accommodations, dining, tours, events, and maps showing the locations of area horse farms. The VisitLex website includes horse farms in both Fayette and other counties, which is beneficial for regional tourism. Lexington benefits when visitors stop in from other destinations, and is generally the home base for people exploring the central Kentucky region, meaning the bulk of the travel dollars are spent in Lexington’s local economy. Horse Country, Inc. horse farm and horse business tours are getting very popular.

Marketing and advertising for horse farm tourism in Fayette County should be maximized and prioritized. With 59.2 square miles of equine farm land in the Rural Service Area, and another 42.23 square miles of farms with an equine and crop mix, that is a total of 101.4 square miles. In future printed visitor guides, adding more about the individual horse farm tours, corn mazes, etc. on farms located in Fayette County could help raise awareness of farms in Lexington. Additional partnerships between farms and VisitLex should be considered.

Summary of Changes:

• Eliminated specific information related to number of visits

PROSPERITY POLICY #6

PROMOTE KENTUCKY PROUD & LOCAL LEXINGTON PRODUCTS USING UNIFIED BRANDING.

The Kentucky Department of Agriculture’s Kentucky Proud program is funded by the 1998 Tobacco Settlement. Registered members receive marketing assistance, promotional materials at cost, grants opportunities, no-cost meat grading, international marketing materials, cost-share for wineries, veterans program, and restaurant reimbursements for using Kentucky Proud foods. The logo is wide-spread and has become quite recognizable throughout the Commonwealth.

Lexington/Fayette County should consider a logo program to identify locally grown/produced products and experiences. This logo could help identify products and tours specifically from Lexington.

Summary of Changes:

• No Change

PROSPERITY POLICY #7

SUPPORT & INCREASE NETWORKING OPPORTUNITIES FOR CAREER RELATED INSTITUTIONS, ORGANIZATIONS, & AGENCIES.

As part of the Imagine Lexington process, staff met with representatives from many of the agency-types listed above to help inform the Plan’s recommendations. At the time, multiple stakeholders indicated that they would like to have regular meetings together to network, discuss, and brainstorm.

There was a concern that career path introductions need to be incorporated into the high school education to help students understand the demand for employment and the day-to-day demands of full-time employment. An unmet demand for skilled trade/industrial maintenance jobs that usually require a vocational trade certificate/licensure or associate degree was also pointed out. Additionally, there was a concern that high school students felt they only had a binary choice of attending college or not, and that vocational trade and technical career paths were not considered. Education and outreach efforts should be increased to publicize the demand for technical positions and the pay for those jobs. Meetings between Planning, Commerce Lexington, LFUCG Economic Development and Purchasing, VisitLex, educational and training providers, and small business development agencies will continue to be beneficial for business recruitment, workforce development, and economic sustainability as Lexington’s economy grows.

Summary of Changes:

• No Change

PROSPERITY POLICY #8

PROVIDE EMPLOYMENT OPPORTUNITIES THAT MATCH THE GRADUATING MAJORS FROM LOCAL COLLEGES & VOCATIONAL TRAINING INSTITUTIONS.

Lexington has both public and private education institutions awarding thousands of degrees, diplomas and certificates each year. The four-year plus degrees conferred from University of Kentucky and Transylvania University from 2018 to 2022 total to over thirty-nine thousand college degrees. Furthermore, people got associate degrees offered by BCTC and degrees from other local colleges. Fayette County Public Schools reported a graduation rate of 89% which translated to about forty thousand students a year. Fayette County Public Schools also offers Career and Technical Education (CTE) programs at three centers, Eastside Technical Center, Locust Trace AgriScience Center and Southside Technical Center. All these academic achievements provided for a significant number of new skilled and qualified people entering the workforce annually.

With such a large number of qualified people entering the workforce, Lexington had only an increase of 16,454 jobs over that same time span. Some of those graduates found jobs in their career fields in Lexington, others were lured away for various reasons. The reasons for leaving Lexington for other job markets included: few job openings in their fields, the degrees do not match the job demand, and competitive compensation rates. According to the Bureau of Labor Statistics, of the twenty-three major occupational groups, Lexington ties or ranks better than the national average in only twelve categories. The pay gap followed the same trend, Lexington workers had an average hourly wage of about 14% below the national average with only one category, production, better than the national average.

The academic institutions are working on recruiting students and talent from across the state, nation and even the world. A good example of this is The James W. Stuckert Career Center at University of Kentucky. It has a main office and three satellite offices: Engineering College, Business School, and College of Agriculture, Food, and Environment. The career center is making efforts to recruit college students during junior and senior years of high school. It offers students advise to help them pick a major and finish a degree in a timely manner; provide student internships and co-op opportunities; and hold several large job fairs in the fall, plus several smaller ones throughout the year.

Working closely with academic institutions to match trends in college degrees to the job market trends reveals insights into the jobs that are available.These industries should be promoted to encourage more college graduates to remain in Lexington. In 2022, Forbes’ ranked The University of Kentucky fifth on the "Best Employers for New Graduates" list. As the largest employer in Lexington, collaborating with UK to work on ways to retain new graduates can expand the labor market that will have a positive overall effect on Fayette County.

Summary of Changes:

• Updated the numbers

• Included Fayette County Public schools graduation rate and program information

PROSPERITY POLICY #9

RECRUIT PROFESSIONAL SERVICES THAT UTILIZE VACANT OFFICE SPACE.

Several industry professionals in Lexington, have indicated a surplus of vacant professional office space. Reviewing NAI Isaac’s 2022 Market Report, the vacancy rate for office space in Lexington is around 12%.

Lexington has approximately 12.1 million square feet of office space, with almost 1.5 million square feet of available space throughout the urban service area. In addition to the existing office spaces, new construction of office space has slowed down. Only 343,000 square feet developed overall since 2017, including roughly 30,000 square feet delivered since the start of the pandemic in 2020. The pandemic emptied offices not just in Lexington but around the world. Many more office spaces will remain empty as more employees demand to work from home.

“For the past four years, we have seen a steady decline in the demand for office spaces, aggravated by Covid-19, and this trend is ongoing. While office vacancy rates started to rise before the pandemic, remote and hybrid work, layoffs, and higher interest rates further increased office space availability in the market. Overall, the office vacancy rate has risen by 3% since 2019 (National Association of Realtors).”

Despite the pandemic’s impacts on office usage, the citywide office vacancy rate has remained relatively stable over the course of the last five years, and office rents have decreased only slightly at a CAGR of5% from $17.50 per square foot in 2019 to $14.89 per square foot in 2022 (Imagine New Circle).

Utilizing these available office spaces will require moving away from the traditional ways we view office space, which will involve reviewing and updating the zoning ordinances. These spaces can be transformed or repurposed to more vibrant and welcoming spaces. Lexington should look to find new types of smart uses for these spaces that are both updated and competitive to boost the economy and workforce. Vacant offices can be programed as shared spaces, reimagined as community or recreational spaces, or even modify some of the square footage to other uses that might be complementary to the existing businesses. The options are endless and can be successfully accomplished by approaching the use of available space from a long-range plan and avoiding knee jerk reactions to the recent trends.

Summary of Changes:

• Updated to reference changes since the COVID-19 pandemic

• Referenced Imagine New Circle Road study

• Updated numbers

PROSPERITY POLICY #10 ENCOURAGE FLEXIBLE PARKING & SHARED PARKING ARRANGEMENTS.

Parking demands operate on a peak and off-peak schedule depending on related land use. While the recently adopted regulatory changes mitigate many of the environmental impacts of parking, next steps include making better use of the abundance of parking that is currently available. Shared parking is a development strategy that optimizes parking capacity by allowing complementary land uses to share spaces, rather than producing separate spaces for separate uses. By taking advantage of distinct but complementary land use patterns, such as office uses which do not traditionally utilize parking lots in the evenings and on weekends, and residential land uses, which are generally utilize parking during the evenings, Lexington can better satisfy the needs of residents and commuters without increasing parking supply.

Shared or flexible parking with adjacent users may offer opportunities to better streamline maintenance costs, provided that the operational challenges of sharing such a critical resource can be alleviated. Future changes in mobility decisions, including driverless cars and mass transit, may alleviate this problem altogether; but for now, shared and flexible parking should be encouraged. Continued development of autonomous vehicle policies throughout the next few years should lead to further zoning ordinance text changes to reflect the evolving market for that technology.

Summary of Changes:

• Updated to reflect recent regulatory changes

PROSPERITY POLICY #11

EXPAND JOB OPPORTUNITIES THROUGH EDUCATION & TRAINING TO RETAIN EXISTING BUSINESSES & ATTRACT NEW ONES.

One of Bluegrass Community and Technical College’s (BCTC) 53 programs of study is an Advanced Manufacturing Technician program, which prepares students for high-wage, high-demand manufacturing maintenance technician jobs. These students work part-time for their sponsoring employers, taking classes two days a week in mechanics, robotics, electricity, fabrication, and fluid power. Upon completion, they graduate with an Associate in Applied Science degree in less than two years. BCTC also has a Computerized Manufacturing and Machining program.

Some students may qualify for completely free tuition in the Work Ready Scholarship program, where they can receive training for a higher paying, in-demand job in four months or less, tuition-free. The Kentucky Community and Technical College System has over 80 such programs, and BCTC has Work Ready programs in Advanced Manufacturing (39 programs), Business and IT (31 programs), Construction (21 programs), Healthcare (22 programs), and Transportation and Logistics (3 programs), available for qualifying students. Educational and training opportunities like these should be expanded upon to maximize their impact New programs and ideas should be developed to continue to grow the talented workforce so many employers are seeking.

Summary of Changes:

• Updated data on number of programs

PROSPERITY POLICY #12

IMPLEMENT THE LEGACY BUSINESS PARK MASTER PLAN FOR THE 250 ACRES OF PUBLICLY-CONTROLLED ECONOMIC DEVELOPMENT LAND AT COLDSTREAM RESEARCH CAMPUS.

Ownership of the 200 acre Legacy Business Park site was transferred from the University of Kentucky (UK) to the LFUCG in July 2022 in accordance with a Memorandum of Understanding that provided a total of 250 acres of land to the City for economic development purposes. The site, located southeast of the intersection of I-64 and Georgetown Road, has been rezoned to a restricted I-1 zone and will support approximately 1 million square feet of industrial uses that will create more than 2,000 jobs. The master plan for Legacy Business Park is complete, and provides significant open space amenities and connections to the Legacy Trail, with approximately 135 net acres for industrial development. The City has invested $9.5 million in ARPA funds towards Phase I infrastructure installation, which is currently in the design phase. Groundbreaking for Phase I improvements is expected in late fall of 2023.

Summary of changes:

• Reflect the completion of the Legacy Business Park Master Plan and recommendations for next steps

PROSPERITY POLICY #13

PROMOTE INCREASING THE SUPPLY OF FARM WORKERS, & THE AVAILABILITY & AFFORDABILITY OF USING AGRICULTURAL TECHNOLOGY, & AGRICULTURAL EQUIPMENT.

According to a 2017 report by Lynn Roche Phillips, PhD., AICP, and Priyanka Ghosh, PhD., University of Kentucky, Department of Geography, titled “Rural Land Use Inventory, Fayette County, Kentucky,” Lexington is utilizing 108,248 acres, or 86% of its Rural Service Area for agriculture. Having adequately trained farm labor is crucial to continuing the success of this important part of Lexington’s overall economy. Nationwide there are two jobs in agriculture for every new agriculture job seeker. Hiring has become increasingly difficult, and while there is increasing reliance on new agricultural technology, there is both a need for skilled, trained workers to operate the equipment, and a need for skilled farm workers conducting manual farm labor. Larger operations are more likely to use agricultural technology due to the cost of the equipment, whereas smaller or specialized operations rely more on skilled manual farm labor.

Examples of efforts to increase the supply of farm workers that could be done locally (some presently undertaken), would be to recruit and retain seasonal/ temporary farmworkers from students enrolled or graduating from Locust Trace AgriScience Center, UK College of Agriculture, KYSU College of Agriculture, and other agriculture related education and training programs throughout the United States. The proximity of Kentucky’s land grant institutions, the University of Kentucky and Kentucky State University, provides the area with well trained and educated potential employees that can increase Lexington’s agricultural productivity.

Another possible source may be second-entry workers trying to re-establish their lives during or following rehabilitation from addiction There are also farm therapy programs for military veterans who have struggled with post-traumatic stress disorder from their service. Examples of such programs are the West Virginia Veterans and Heroes to Agriculture program through the WV state agriculture department, where veterans learn about Ag practices to harvest crops and grow food. Such a program in Lexington would be a positive, as it is the location of one of the two Veteran Centers in Kentucky.

Additionally, though not universally applicable due to costs, agricultural technology and equipment could be an answer to a shortage of farm workers for some types of farms. Programs and agencies that provide financial assistance to farms in acquiring technology and equipment should be promoted. Coordination with the Fayette County Extension Office, as well as various local non-profits, can introduce and train farmworkers in emerging agricultural technology and agricultural equipment which can increase productivity and provide for a more sustainable and resilient local food network.

In collaboration with and taking advantage of the trained professionals from Kentucky’s nearby Land Grant Universities, the City should look at ways to promote the development the continued development of agricultural technology or Agritech to become a hub or leader for both the State and the Country. Agritech is the use of technology in agriculture with the aim of improving yield, efficiency and profitability. It includes products, services, and applications that improve various input/output processes. It is innovations related to software/hardware, robotics, sensors, precision agriculture, big data, artificial intelligence, state-of-the-art equipment and related technologies that support the farms

of the future. Creating a designated program for the research and development of Agritech will put Lexington on the cutting edge and can further support local agricultural industry.

Summary of Changes:

• Updated information with a focus on new programs

PROSPERITY POLICY #14

CREATE AND IMPLEMENT MECHANISMS FOR LOW, MODERATE, AND MIDDLE INCOME RESIDENTS TO ACCESS AFFORDABLE AND EQUITABLE HOME FINANCING OPTIONS TO ENABLE THEM TO “GET ON THE PROPERTY LADDER” AND ACCUMULATE INTERGENERATIONAL WEALTH.

Homeownership within the United States has long been the gold standard of accessing intergenerational wealth, as well as access to safety and security over the course of an individual’s life. Multiyear research indicates that there is a correlation between homeownership and increased graduation rates, economic stability, and overall health benefits (Yun & Evangelou 2016) Over the course of the last five years, there has been a tremendous shift in the cost of home ownership, as well as rental housing throughout United States and more specifically in Fayette County. Since 2018, the average median sale price of a home in in Fayette County has increased by approximately $96,000 (Redfin 2023), and the monthly median gross rent between 2017 and 2021 increased by $196 The dual increases in cost have both burdened Lexington’s population, which has not experienced the same increase in wages. Additionally, the increase in rent prices make saving for homeownership difficult, while the simultaneous increase in median sales price can disqualify many from entering into the market all together.

The cost of housing has resulted in discussion and an oft utilized talking point that for those who cannot find housing opportunities in Lexington, due to the high cost of purchasing a home in Fayette County, will seek opportunities in nearby neighboring counties. Whereas that might have been true in the past, the data does not fully support such assumptions currently. The five year average median sale price for housing in neighboring Scott County and Woodford County are greater than that of Fayette County, and the median sale price for Jessamine County is less than 2% of the cost of housing in Fayette County (Redfin 2023). For those working in Fayette County and owning in neighboring counties, the annual transportation costs (fuel, maintenance, etc.) quickly diminishes many of cost savings that would be gained from moving to surrounding communities.

The realities of the rental and ownership market, which are the result of governmental and private restrictions on the market, the cost of construction and materials, and the lack of government oversight, results in the need to include new forms of housing, that offer smaller square footages and differing models of ownership. While the historical process of homeownership typically began with the purchase of small, single family detached homes, the competition for small residences is at an all-time high as those who have retired and have already secured equity are looking to downsize. The market competition coupled with the builder focus on larger homes, so to maximize profit during a turbulent construction market, forces new buyers to either over-burden themselves or stay out of the market. Through the inclusion of new housing types, like cottage houses and garden apartments, and the promotion of new ownership regimes, like land trusts and community ownership agreements, the costs for construction can be lessened and the land ownership costs can be relieved. Any addition of new housing types and ownership regimes will also take education and inclusion of the banking industry or other financial institutions.

Additionally, it is not enough to promote the development of new housing types and ownership regimes, it is also essential to review the restrictive regulations within Fayette County. Without modification of the regulations within Lexington, change will not be achievable. It is illegal to build anything other than single family detached homes in greater than 57% of the Urban Service Area. The

impact of this regulatory restriction is that those who are making less than $61,000 dollars are often unable to enter the housing market without being burdened and needing to make cuts to other essentials Changes to the regulations should include review of the current ADU ordinance, increased opportunities for missing middle housing, modification of lot sizes and setbacks, and density bonuses for affordable housing across all zones. In addition to local regulation changes, Lexington, in association with surrounding communities and development advocates, should advocate for a review of the state building codes to allow for more efficient construction methods and variable housing types.

Summary of Changes:

• New Policy

PROSPERITY POLICY #15 COLLABORATE WITH DEVELOPERS, COMMERCIAL ENTITIES, AND NON-PROFITS TO ELIMINATE FOOD DESERTS THROUGHOUT THE COUNTY AND ENSURE THAT ALL RESIDENTS HAVE EAST ACCESS TO AFFORDABLE AND NUTRITIOUS FOOD.

With the unanimous passing of the Market Garden ZOTA by the LFUCG City Council, it is now easier for community gardens to sell their produce on site. This has been a positive step towards combating food deserts. According to the USDA, food deserts are areas where people have limited access to a variety of healthy and affordable food. The issue of food deserts arises from the lack of grocery stores, farmers’ markets, and healthy food providers in certain areas. Lexington is not immune to growing populations suffering from food deserts. The U.S. Department of Agriculture’s website titled Food Access Research Atlas displays the food deserts.

Following a recommendation made in late 2020 by the Mayor’s Commission for Racial Justice and Equality, Fayette County has placed more emphasis on improving food access and healthy food options. As policymakers consider interventions to increase food access, it is important to understand the characteristics associated with these areas, such as income, vehicle availability, and access to public transportation.

Ongoing strategies to eliminate food deserts in Lexington is a collective effort. Different organizations are taking different approaches to this issue. Seedleaf is a nonprofit organization that serves its neighborhoods by developing a network of community gardens throughout Lexington especially in food deserts. Seedleaf is reconnecting people with their food, the soil, and each other. Currently Seedleaf's biggest garden is London Ferrill Community Garden located on Third Street. This space features both free u-pick areas and individual plots. Utilizing long term vacant lots for food is an idea that is easy to adopt as a policy.

God’s Pantry Food Bank has opened a pantry inside the Northside Branch of the Lexington Public Library, where people can look around and take home the food that they need. The food bank is open to the public Monday through Friday. According to God’s Pantry, one in six people in central and eastern Kentucky don’t know where their next meal will come from. Public buildings are considered community assets and setting up spaces like God’s Pantry did can expand this program to further reduce the distance to fresh food. This same idea can apply to parking lots on weekend or after hours.

In Louisville, The Kroger Company's "Zero Hunger Mobile Market" aims to make a difference for people who live in some Louisville neighborhoods. The Zero Hunger Mobile Market is a single-aisle grocery store on wheels. The Mobile Market visits neighborhoods that have limited or no access to fresh fruits, vegetables, and other nutritious foods. For the fiscal year 2022-2023, the mayor allotted $260,000 for a new mobile food grocery store for neighborhoods that have limited access to food. This is an example of how incentive programs for eligible groups to partner with other groups, including farmers’ markets, community-supported agriculture programs, or retail food stores participating in SNAP can help.

As Lexington’s population grows, finding smart ways to tackle food deserts should be a priority, including the creation of incentives, and infrastructure investments to connect neighborhoods to these necessities. As this is worked out, there are locations that can be used to set up farmers markets,

community gardens, or mobile markets. Guidelines and incentives on how to make these feasible should be considered for the long-term benefits.

Summary of Changes:

• New Policy

PROSPERITY POLICY #16 CREATE A CENTRAL COORDINATING FUNCTION FOR ALL SOCIAL SERVICES IN THE COUNTY, INCLUDING NON-PROFIT, FAITH-BASED, AND GOVERNMENTAL SERVICES

Recent economic, food, and housing insecurity has forced many communities throughout the United States to acknowledge a long history of social and economic inequities Social strife has an impact across all of Lexington and it is the responsibility of the City to plan the most for those with the least.

Lexington’s Department of Housing Advocacy and Community Development has worked to establish programs and assistance for residents throughout the community. Housed within this Department is the Divisions of Affordable Housing, Community and Resident Services, and Homelessness Prevention and Intervention. Each of these Divisions works to provide services to the community for those in need.

In addition to the programs housed within the Urban County Government, there are numerous nonprofit and faith-based services picking up where the government is unable. These organizations range in the target population and can be more direct in the aid that they provide at a person to person level. While the government and the non-governmental organizations overlap in the approach and interact routinely, for a robust response to the needs of community members, a central coordination of social services in the county can be beneficial.

Summary of Changes:

• New Policy