Commerce Lexington Roundtable Events

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 of Imagine Lexington 2045. These conversations were centered on different segments of the local economy and included the development sector, major employers, small businesses, signature industries, commercial property owners, the Commerce Lexington Board, and Minority Business Owners.

Methodology During the roundtable the participants were asked for their feedback on the business climate in Lexington and how city policies may be helping or impeding future jobs and prosperity. The sessions generally followed this agenda: 1. Welcome from the facilitator/host, Carla Blanton, Commerce Lexington’s 2022 Public Policy Chair. 2. Business Climate Questionnaire that included some personal/business demographic questions, as well as four feedback questions: a. What are the strengths to Lexington’s business climate and policies? Please list the top three strengths. b. What are the greatest challenges to your business? Please list the top three challenges. c. What city policies or other issues may be impeding your ability to grow jobs in Lexington? Please list up to three concerns or issues. d. What can local policy-makers do to help your business succeed in Lexington? Please list up to three suggestions. 3. An overview video prepared by the Division of Planning was shown that explained what the Comprehensive Plan is, why it is important, and why people should get involved. 4. Roundtable discussion based on the four survey prompts, led by Carla Blanton. Planning staff attended of all of the meetings, but did not participate in the discussion. 5. Wrap-up Comments

Commerce Lexington Events & Dates Development Sector – 4.6.22 Major Employers – 4.7.22 Major Employers, pt.2 – 4.7.22 Innovation/Small Business – 4.8.22 Hospitality, Tourism, Signature/Visitor Industries – 4.12.22 Commercial Property Assoc. of Lexington – 4.13.22 Innovation/Small Business – 4.13.22 Commerce Lexington Board – 4.25.22 Minority Business Owners – 5.2.22

Key Takeaways

Based on Planning staff’s observation of the roundtable conversations, the following common themes emerged:

POSITIVES

• Highly Educated Workforce – This was a common theme that was seen as a positive. • Good Location & Interstate Access – Many saw Lexington’s geographic positioning, location relative to other cities, and interstate access as beneficial to their business needs. • Downtown Revitalization/Tourism/Convention Center – Some participants were pleased with the new developments downtown and specifically the convention center as a facility to draw people to Lexington. • Strong Chamber/Business Relationships – Many were complimentary of Commerce

Lexington and their efforts to build relationships with local businesses, and also of the close relationships forged between business leadership within the community. • High Quality of Life – This was a common theme where participants lauded Lexington’s improvements in amenities, but also mentioned that there is a lot of room for improvement. They noted that this is a primary driver for attracting young talent to the area, and that Lexington is competing with other cities in this regard. • Healthcare & Higher Education – The healthcare industry and universities, which are primary employers in the city are noted to be strong and a benefit to the overall economy.

CHALLENGES / SOLUTIONS

• Employee Attraction/Retention – A very common theme during the roundtable discussion were staffing issues. Some of the issues noted were: • Difficulties with returning to the office after COVID. • Competing with large corporations based in other cities for employees that can work remote from anywhere. • A large percent of the workforce being retirement age and leaving the workforce • It is challenging to find reliable entry-level workers who can pass drug screen and will arrive on-time. • University students are largely leaving the market upon graduation and finding employment elsewhere. • Employers need more generally trained entry-level employees, and some find the recent graduates to be too specialized. • Transportation Barriers – Concerns about employees’ ability to get to work were mentioned, as well as a desire to have a walkable/bikeable city to help attract young talent. Some of the issues noted were: • Current public transportation is inadequate, so if employees do not have a car they cannot work. • Improve traffic on major roadways to assist with commute reliability. • Housing is Increasingly Expensive – Several were discussing how Lexington’s housing affordability has decreased recently, and the lack of housing options make it difficult for entry-level employees. Additionally, the low real estate inventory was discussed. • Childcare is Increasingly Expensive and Limited – Many participants noted that since

COVID, childcare options have decreased since those facilities have also faced significant staffing shortages. They remarked that this has led to a marked departure of employees from the workforce – a large number of them female. • Supply Chain Issues – Many participants had issues with supply chain reliability. • Crime and Safety are Quality of Life Issues – Several remarked that safety, particularly downtown has become more of an issue lately. • Concerns with Air Travel Availability – This was mentioned by a couple of participants, particularly with the small number of non-stop flights. • Difficulty for Minority Businesses to Access Capital/Loans – Several of the minority business representatives remarked that it is challenging for them to secure funding without the generational wealth, business history and relationships that some other non-minority businesses have. • More Trade School Training – Several participants mentioned a need for more trade and skilled workers.

• Land Availability – Primarily single-family home builders remarked that there is not enough available land for them to build on, and that they are increasingly constructing in other adjacent counties. They also said that the land that is available is too expensive. • Manufacturing and Warehousing Jobs Locating in Adjacent Counties – Participants mentioned that these facilities and jobs are locating in adjacent counties due to the cost of land. • Infill & Redevelopment Projects are Challenging – Neighborhood opposition, the City’s process, and costs for these projects were mentioned as reasons why. • Urban Service Boundary – The Urban Service Boundary was mentioned as an obstacle to some of the goals of the development community. Some suggested that it is being used to constrain population, and that it is the source of a number of issues faced by development professionals.