Theme C: Creating Jobs & Prosperity

THEME C

CREATING JOBS & PROSPERITY

INTRO 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 horse-related entertainment (Keeneland, Kentucky Horse Park, Horse Country Tours, etc.), 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. Retail

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Trade and Accommodations and Food Services follow with the second and third most jobs, while Wholesale Trade and Professional, Scientific, and Technical Services provide the second and third highest payroll tax revenue.

Maintaining that diversity in industries and occupations, while increasing opportunities for higher wages, will help provide longterm sustainability as markets and the global economy change.

Continuing to recruit employers, especially industries with higherpaying jobs, will be beneficial to Lexington’s revenue flow and should provide upward mobility opportunities for employees in industries with lesser paying jobs.

Recently, Lexington has been appearing on more and more “topranked city” lists for everything from, “Best City for New Grads” to “Best City to Retire.” It is important for Lexington to leverage this momentum and take the city to the next level as far as desirability is concerned.

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.

LEXINGTON AS A TOP-RANKED CITY...

• #2 - “Top 12 Global Destinations to Visit in 2018,” Newsday • #2 - “Best Mid-Size Cities for New Grads 2018,” The

Degree 360, 2017 • #3 - “Best Cities with the Highest Salaries, and Lowest Costs of Living,”GoBankingRates, 2018 • #10 - “Top 10 Destinations on the Rise - USA,” Trip Advisor, 2018 • #14 - “25 Best Places to Retire,” Forbes, 2018 • #21 - “Best Place to Live,” U.S. News & World Report, 2018 • #31 - “America’s 50 Best Cities to Live” 24/7 Wall St, 2017 • #50 - “Top 100 Best Places to Live,” Livability, 2018

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WHERE ARE WE NOW? AGRICULTURE Fayette County’s Rural Service Area (RSA) makes up 200 square miles of the 285.5 square mile county. In the recent 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.

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

and play a role in Lexington’s overall economy. The report is a wonderful resource for providing 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.

“CONTINUE TO FOCUS ON INITIATIVES

LIKE KENTUCKY PROUD & LOCAL

FARMERS MARKETS.” -LEXINGTON RESIDENT

output annually and $1.3 billion dollars in additional income, profits, and dividends.”

Obviously 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

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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

IMAGINE LEXINGTON

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 about 34 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

HORSE FARM ALONG VAN METER RD.

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 for economic, as well as historic, and cultural purposes.

GODOLPHIN AT JONABELL FARM, LEXINGTON, KY

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EMPLOYERS & INDUSTRIES Lexington has 29 companies, listed on the next page, employing 250 or more employees, totaling 62,111 employed. Approximately 32.3% of Lexington workers work for employers employing 250 or more. The University of Kentucky, combining the school’s employment and UK Healthcare’s employment, is the single largest employer in Fayette County.

of these smaller businesses grow into larger businesses, and further contribute to the overall economy.

Fifty percent of the small businesses with fewer than 250 employees in Fayette County have only one to four employees. The majority of businesses with fewer than 250 employees (83%) have fewer than 20 employees.

Retaining and growing these large employers is very important, as they are vital to Lexington’s economy, but retaining and growing the smaller businesses is also important.

The vast majority (67.7% of all Lexington’s workforce, or 130,294 workers) are employed in smaller businesses, which underscores the need to support these enterprises, and create an environment where entrepreneurs can thrive. While most of the workforce works resides at places employing fewer than 250 people, loss or layoff from one of the larger employers has a trickle-down effect on the medium and small businesses due to less disposable income and less business activity between businesses. The symbiotic relationship between all sizes and types of businesses needs to be supported and proliferated. Many

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IMAGINE LEXINGTON

REVENUE Lexington’s main source of revenue is the 2.25% payroll withholding tax, which made up 56.1%, or $194.1 million, of the total revenues for FY 2017. Combining the payroll tax revenue with the 2.25% tax on businesses’ net profits for FY 2017 at $39.2 million, or 11.3%, these two together equaled 67.4%, or $233.3 million, of the FY 2017 total revenues of about $346 million from which the city uses to operate. This revenue generated from employment and businesses located in Lexington 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.

on the local economy. Wholesale Trade brought in the second most payroll dollars, but was seventh in number of jobs. Professional, Scientific, and Technical Services jobs brought in the third highest payroll amount, and was fourth in number of people employed.

Wholesale Trade jobs are much higher-paying on average, but there are less than half as many

Wholesale jobs as Retail. Retail Trade had the second most jobs at 20,823, and Accommodations and Food Services had the third most at 19,999, but both of these categories have the lowest average pay. Finance and Insurance are the second-highest paid jobs on average, with only 4,830 jobs, and Construction jobs were third-highest payroll

on average, with 9,717 jobs. In the following chart, increasing employment in the industries labeled with a green dollar sign would have a larger impact on increasing revenues for the city than the other industry categories, since those industries have higher paying jobs on average.

The US Census Bureau supplies the County Business Patterns (CBP) data each year, reporting employment and payroll dollars by industry. For the year 2016, the CBP shows Healthcare and Social Assistance to be both the leading payroll contributor and the leading employment provider at 31,875 employees. Since CBP categories do not include government employment at any level, UK Healthcare and the Veterans Hospital are not counted, indicating an ever larger impact

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In looking at the gains and losses in employment and payroll by industry in Fayette County from 2011 and 2016, the county experienced the highest increase in payroll from Construction employment, followed by the second-highest payroll increase in Professional, Scientific, and Technical Services, with the third-highest payroll increase in Healthcare and Social Assistance.

As far as the highest increases in jobs by industry, Healthcare and Social Assistancegrew the most, with 4,437 jobs. Accommodation and Food Services had the second-highest increase in jobs at 3,432, and Professional, Scientific, and Technical Services experienced the third-highest.

In looking at CBPs for the time period 2007-2011, the effects of the recession are evident.

There were only four industries that had an increase: Wholesale, with the highest increase in jobs and payroll; then Healthcare and Social Assistance, and a slight increase in Educational Services and Transportation and Warehousing. Wholesale rocketed during this time period, with an increase in payroll of about $380 million and about 2700 new jobs. During 2007-2011,

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Manufacturing lost the most in payroll dollars, while Construction lost the most jobs and the second most in payroll dollars.

When looking at the overall time period 2007-2016, Manufacturing still has the highest payroll and job loss. Manufacturing has only gained back $30 million of the $300 million in payroll jobs lost during the recession, and has only recuperated about 900 of the 1,900 manufacturing jobs lost during that same time period.

Construction has gained back most of the jobs lost during the recession, and has increased the payroll dollars from Construction by about $65 million more than was lost during the recession.

NUMBERS OF EMPLOYEES VS. ANNUAL PAYROLL

BY INDUSTRY ($1,000) 2016 COUNTY BUSINESS PATTERNS, US CENSUS BUREAU, FAYETTE COUNTY, KY

GAINS & LOSSES IN EMPLOYMENT & PAYROLL $ BETWEEN 2011-2016

BY INDUSTRY CATEGORY

2016 COUNTY BUSINESS PATTERNS, US CENSUS BUREAU, FAYETTE COUNTY, KY

IMAGINE LEXINGTON

WORKFORCE CHARACTERISTICS In comparing Fayette County to its surrounding counties and Kentucky, Scott County has the highest median household income; while it is almost $14,000 higher than Fayette County, Fayette has 13% 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 more degrees each year than the number of new jobs in Fayette. Many of these graduates leave Lexington, the Bluegrass area, and the state to find employment, as there were 52,323 more degrees awarded than new jobs created in Fayette County.

on government aid and services. As the “Baby Boomer” generation finishes retiring, there will be a need for a younger workforce to replace them. This means the need to reduce barriers to employment, assist in childcare costs, and provide training becomes more important, along with the need to recruit and retain young professionals in Lexington.

FAYETTE COUNTY, KY POPULATION BY WORKFORCE STATUS 2016 CENSUS ACS 1 YEAR SURVEY

In Lexington, the percentage of people aged 16-64 not participating in the labor force in 2016 was about the same percentage as in 2000. However, because the population has grown by about 58,000 people since 2000, the number of people aged 16-64 not participating in the labor force is growing, indicating more people relying

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VISION FOR JOBS & PROSPERITY

livability

diversity

prosperity

PILLARS

&

POLICIES

PILLAR I

LIVABILITY There are a number of reasons why corporations may locate to a city, but according to an annual survey of corporate executives put out

by Area Development magazine in 2016, “quality of life” ranks third in the list of the top factors in determining where a new site should go, only behind “availability of skilled labor” and “highway accessibility”. Locating in a livable place where their employees will want to reside is key to employee satisfaction; corporate decisionmakers are also unlikely to select a location where would be unwilling to spend time. Additionally, recently 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. They consider livability through the lenses of housing, neighborhood, transportation,

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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.

IMAGINE LEXINGTON

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, and with recent developments like the creation of Horse Country, which has accounted for over 70,000 horse farm tours alone since its inception, and Boone Creek Outdoors zip line canopy tours, the timing is right to continue with that momentum.

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

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conditional uses closely scrutinized, using the Rural Land Management Plan 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 AgriculturalNatural Areas zones currently allow several accessory uses that are related to agritourism. Further, tourism-related 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.

“STOP FIGHTING AGRITOURISM! INSTEAD, WE SHOULD ENCOURAGE IT!”

-LEXINGTON RESIDENT

PERMITTED AGRITOURISM RELATED USES FOR A-R, A-B, & A-N ZONES

ACCESSORY USES: • Farm tours • Hayrides • Petting zoos • Parking areas • Tasting rooms for wine samples • Sale of drink or bottle of wine • Roadside stands or agricultural products or valueadded product sales

CONDITIONAL USES: • Horse race tracks with accessory restaurants, serving of alcohol, horse riding, and/or training • Horse Sales • Recreational facilities • Sportsman’s farms • Animal game preserves • Rodeos • Fishing lake • Hunting and trapping • Airports • Bed & Breakfast

• Special events, live entertainment at wineries • Historic home museum • Corn mazes • Farm gift shops • Agricultural educational classes • Horse shows with more than 70 participants • Equine trails • Botanical gardens, nature preserves • Youth camps

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RURAL GATEWAYS

SIGNIFICANT RURAL ROADS

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 remark about the scenic beauty observed while driving through

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the farmland on the way to a destination. Trips to horse farms, distilleries, breweries, or any of the other tourist hot spots become 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 to Lexington permanently. Foals frolicking in a pasture, great blue herons perched on the banks of the Elkhorn, green rolling hills of bluegrass and crops, and historic dry-laid stone fences all add to the

Bluegrass experience and make the case for preserving one of the world’s most iconic landscapes.

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.”

IMAGINE LEXINGTON

LIVABILITY POLICY #3 CREATE A LARGE REGIONAL ATHLETIC FIELD COMPLEX FOR ECONOMIC DEVELOPMENT & TO ENHANCE LEXINGTON’S EXISTING FACILITIES. According to the 2018 Parks and Recreation Master Plan: “The Bluegrass Sports Commission previously approached the city about a partnership for the development of a sports complex to promote economic development. They produced a feasibility study, Lexington Sports

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Complex Market and Feasibility Analysis, in 2015 outlining the benefits of such a facility.”

The proposed sports complex was to be at Cardinal Run North, owned by Lexington and managed by the Bluegrass Sports Commission. Similar arrangements in Elizabethtown have created a cottage industry around tournament sports, while also meeting the local needs for parks infrastructure. While traffic and access concerns regarding the Cardinal Run North complex brought progress to a halt on that site, unquestionably there is a need in the community, and the economic impacts could be significant.

The Parks Master Plan recommends a number of regional (regions of Fayette County) sports complexes to meet the needs of the residents. It also says “a potential Tournament Sports Complex should be evaluated based on its merits as a driver of economic development…A tournament complex may be advantageous to Lexington for its potential to promote tourism, benefit local businesses, and generate additional tax revenue.”

ACTION ITEM WORK WITH PARKS & RECREATION & PRIVATE ORGANIZATIONS TO FACILITATE THE CREATION OF A REGIONAL SPORTS COMPLEX

“IF LEXINGTON CAN INCREASE

CULTURAL ACTIVITIES & RECREATIONAL SPORTS ACTIVITIES WE CAN CREATE A MORE VIBRANT COMMUNITY THAT WILL ATTRACT MORE JOBS.”

-LEXINGTON RESIDENT

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LIVABILITY POLICY #4 CONTINUE TO COORDINATE TRANSPORTATION LOGISTICS & TRAFFIC CONTROL FOR RECURRING SPECIAL EVENTS, FESTIVALS, & PARADES. The Lexington Area MPO regularly meets with the Traffic Safety Coalition subcommittee, the Transportation Technical Coordinating Committee, Bicycle Pedestrian Advisory Committee, and the Transportation Coordination Committee to review security of the transportation systems. On-the-ground coordination with the Divisions of Police and Traffic Engineering for special events provides safety enhancements when roads are closed or traffic patterns are otherwise altered. The high point of these coordination efforts came during the World Equestrian Games, as the normal agencies added LexTran and private businesses to the mix to ensure that patrons were all efficiently ferried to and from the Kentucky Horse Park for events.

By any measurable standard, the traffic and transportation efforts

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during the games were successful, as many citizens utilized those services and the overall impact to Lexington traffic was minimal.

Longer term coordination through the Lexington MPO comes in the form of contributions roughly of $600k a year for operations, which goes to traffic engineering.

Use of those funds covers safety improvements, operations for events and infrastructure for traffic efficiency. The Lexington MPO was one of the first, and is still one of the few, MPOs to fund projects like this out of their annual budget. Staring in the late 1980s, this funding has covered everything from replacing aging traffic controllers to providing the startup budget for the Traffic Management Center.

IMAGINE LEXINGTON

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 millennials, as well as 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, and etc.

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LIVABILITY POLICY #6 ATTRACT & RETAIN YOUNG PROFESSIONALS BY IMPROVING AFFORDABLE HOUSING OPPORTUNITIES, AMENITIES, & ENTERTAINMENT OPTIONS THAT ARE ATTRACTIVE TO THEM. In 2017, a survey titled “The Experience Movement: How Millennials are Bridging Cultural & Political Divides Offline” was conducted by Eventbrite and Harris Poll. It revealed that most millennials would rather spend their money on experiences or events than on tangible things.

Millennials have a common fear of missing out on an enjoyable event or experience that others are having. Many of this age feel their best memories are from their shared experiences.

These young professionals make up much of the current workforce and, as the baby boomers retire, they will soon comprise the majority of the workforce.

Sixty-nine percent of millennials felt that attending events made them feel more connected to the community and the people in it.

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Lexington has tremendous restaurant options, while it also has the free events, music concerts, etc. aimed at keeping our young workforce in Lexington.

There are also the popular and free downtown events such as Thursday Night Live, free concerts at Moondance Amphitheater, a free Thriller Parade, and many other events that attract people of all ages.

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.

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. The study found 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.

“CREATE PUBLIC OR PRIVATE PARTNERSHIPS TO ENCOURAGE SMART, SUCCESSFUL YOUNG PROFESSIONALS TO STAY IN LEXINGTON & DEVELOP THEIR BUSINESS IDEAS.” -LEXINGTON RESIDENT

The study found that many relocated because they were able

IMAGINE LEXINGTON

LIVABILITY POLICY #7 CONTINUE TO CREATE A TRUE MULTIMODAL & MIXED-USE COMMUNITY WITH SAFE & QUALITY ACCESS TO COMMUNITY FACILITIES, GREENSPACE, EMPLOYMENT, NEIGHBORHOOD BUSINESSES, SHOPPING, & ENTERTAINMENT. Walkscore is a website that scores neighborhoods based on a formula that assesses a neighborhood’s walkability, bikeability, and multimodal service on a scale from 1 to 100. In reviewing local Lexington scores, some areas scored much higher in walk and bike scores than others. For example, Aylesford Place-Woodland Park has a walk score of 85 and a bike score of 90. Downtown has a walk score of 88 and a bike score of 83. Columbia Heights has a walk score of 85 with a bike score of 92.

University of Kentucky’s walk score is 80, and bike score was 89, and most errands can be accomplished on foot.

These are examples of neighborhoods in Lexington that are very walkable.

However, overall Lexington received a Walk Score of 34, a Transit Score of 25, and a Bike Score of 44. These numbers indicate that the city is cardependent and that most errands

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require a car. Though the website may have included the rural area, thereby skewing the results to the non-walkable side, it still indicates that there is plenty of room to improve in this area.

Walkability is important for many reasons.

Walking to amenities, employment, etc. from home is good for the environment, public health, and personal budgets, also, a walkable communities drive real estate values higher. Studies also indicate that millennials want to be able to 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 the better access to employment and lower transportation costs (no car expense) offset the higher costs of housing.

In addition to providing a walkable and bikeable environment, it is important to also increase the level of service for our transit operations. The best way to do this is to increase ridership and make land use decisions that put people near the areas that are most easily served by transit, and 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) referenced elsewhere in this plan.

Aylesford Place - Woodland Park

Downtown Lexington

University of Kentucky

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LIVABILITY POLICY #8 PROMOTE QUALITY OF LIFE ASPECTS, INCLUDING GREENSPACE, AS AN ATTRACTION TO NEW BUSINESSES & RESIDENTS. The design of a city, its public spaces, and public infrastructure have important correlations with quality of life, social development, and other key components of human wellbeing. Likewise, appealing cities are more likely to attract a creative, innovative, and skilled workforce, and the investments that are needed to drive the urban economy. The urban design practice in the modern world is not only for building layouts, but includes an additional focus on the goals of making urban areas functional, attractive, and sustainable.

One great example of city-wide amenities that improved the quality of life is the Legacy Trail system through Lexington.

Many new businesses and residents factor the trail systems in when making their company and home location decisions.

This type of regional greenspace is largely well-received by citizens. Another regional greenspace project underway is the Town Branch Commons, a world class greenway and park for downtown Lexington. It will be a 2.5-mile linear park that follows

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the historic route of the Town Branch Creek, currently located in a culvert under modern day Vine Street. This system will provide continuous bike and pedestrian connections, a lush green band through downtown, connections to new and existing parks, and improvements to water quality. Town Branch Commons will also connect the Legacy and Town Branch Trails, completing a 22-mile trail network that can be used for far more than just recreation. A project of this scale needs support from all community stakeholders with public and private partnership. The project is already energizing multiple facets of private developments along the corridors, with increasing interest among new businesses and residents.

During comprehensive plan community discussions, the general public indicated broad support for the overall concept of continuing to preserve the outlying horse farms that are widely represented as Lexington’s identity. As has been mentioned before, these farms are not only pretty to look at, but are vital in direct and indirect impacts to Lexington’s economy. In recent years, the horse farms have started to embrace connections with the urban population, opening up their doors with Horse Country tours. This creates a personal connection between the urban and rural areas and strengthens Lexington’s identity, which assists in bringing more people and businesses to Lexington.

TOWNBRANCHCOMMONS.ORG

IMAGINE LEXINGTON

LIVABILITY POLICY #9 PROMOTE ECONOMIC DEVELOPMENT THROUGH THE PRESERVATION OF STRATEGICALLY & APPROPRIATELY LOCATED INDUSTRIAL & PRODUCTION ZONED LAND. The creation 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.

While Imagine Lexington is in large part focused on designing

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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, however, are still very much a factor in future industrial and production growth. These areas should pay special attention to their design features as well.

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 it may not initially sound intuitive, full multimodal transit infrastructure is of the highest importance.

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.

ACTION ITEM INVENTORY & ANALYZE EXISTING INDUSTRY & PRODUCTION LAND, IDENTIFYING AREAS TO ENHANCE OR RE-PURPOSE BASED ON MARKET & LOCATIONAL FACTORS.

“WE NEED TO CONSIDER THE DEVELOPMENT OF A HIGH-WAGE, HIGH-TECH INDUSTRIAL PARK TO CREATE JOBS. THIS WOULD BE IMMENSELY BENEFICIAL, BUT ONLY IF DONE IN A THOUGHTFUL WAY.” -LEXINGTON RESIDENT

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PILLAR II

DIVERSITY There is strength in diversity.

Diversity in Lexington’s population and workforce affords citizens the opportunity to learn from different viewpoints, experience other cultures, and supplement their weaknesses with others’ strengths. Diversity in an investment portfolio provides safety and security, knowing that if one investment should falter, the others should be there to be the equalizing force to keep the overall performance meeting expectations. Similarly, diversity in Lexington’s employment opportunities and industry types offers a resiliency for the community that would not be there if the economy were singularly focused on one particular industry.

Examples abound of cities that were so heavily invested in a particular industry or corporation that they were dealt an unrecoverable blow when that company decided to relocate, or that particular industry was disrupted in such a way that the jobs dried up. Lexington

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is fortunate to not be in a situation where the economy is monopolized by such a situation; however, it is important to remember that the city’s economy is comprised of many parts, and it is incumbent on policy makers and economic development professionals to ensure they pursue all angles. Horse farms and the agricultural industry are significant, but so are the healthcare and education industries. The blossoming tech and research and development industries are becoming more significant, but the service sector jobs that support consumer spending habits of those fortunate to have more expendable income are important too.

It is also of note that, while Lexington has 29 companies that employ over 250 people, 68% of the workforce is still employed by smaller business. Diversity exists, therefore, not only in industry type, but also in company size. It is critical to have large employers that serve as the bedrock on which the economy is based,

such as University of Kentucky, which employs 15% of Lexington’s workforce, but also smaller businesses that provide a variety of options for employees to pursue.

Small business assistance should be a high priority as Lexington looks to encourage entrepreneurs and facilitate the growth of these smaller entities into the bedrock corporations of tomorrow.

The variety of jobs that accompany the diverse employment sectors create job opportunities across the board for all types of people. This diversity in workforce helps create a healthy and desirable community.

It is key to maintain these job opportunities, while continuing to focus on adding high-paying jobs. Providing the ability for all to have upward mobility, especially those in the retail sector positions that are among the lowest-paying, is a key component to increasing quality of life across the board.

Part of facilitating that upward mobility is providing training and educational opportunities for

those who need it, particularly vulnerable populations who may have grown up in impoverished situations, have disabilities, or may be re-entering the workforce after incarceration or rehabilitation from addiction. It is also important to provide not just training, but jobs for those individuals after they complete the training, hopefully in close proximity to where they live.

Concerted efforts to provide these services as a way make the most of every citizen’s potential should be a priority, and will help Lexington leverage its diversity to continue to strengthen the economy and the community as a whole.

“ENCOURAGE A DIVERSE RANGE OF JOBS AVAILABLE TO ALL CITIZENS

THAT HAVE HIGH

EARNING POTENTIAL.” -LEXINGTON RESIDENT

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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.

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LEXINGTON-BASED TECH COMPANY FOOJI EXPANDS HEADQUATERS.

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 oncampus business incubator, Advanced Science & Technology Commercialization Center (ASTeCC), houses new and rising technologybased 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, two-thirds of which are owned by UK faculty; the rest are from out-ofstate. Fifty-nine 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 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.

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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. Unemployment is low in Lexington, but many jobs are concentrated

in industries of less than average pay. 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 $49,229; for Retail Trade, the average income was $25,187; and for Accommodations and Food Services, average

income was $16,805. While there are opportunities within these industries to advance to higherpaying jobs, overall they have a higher percentage of lowerpaying jobs. These vital jobs should be retained, but those in higher-paying employment sectors should remain the focus of Lexington’s economic development strategy. These more lucrative jobs attract young professionals from surrounding areas, help retain local graduates,

or encourage movement from existing lower-paying positions.

Funding and supporting research and development campuses should also 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.

“ATTRACT EMPLOYERS THAT CAN OFFER A VARIETY OF POSITIONS FROM RECENT HIGH SCHOOL & COLLEGE GRADUATES TO THOSE WHO ARE CHANGING CAREERS & HAVE EXPERIENCE OR GRADUATE DEGREES.” -LEXINGTON RESIDENT

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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, & WOMENOWNED COMPANIES DOING BUSINESS WITH THE CITY. Minority, veteran, and womenowned businesses are underrepresented in Lexington, and the MBEP, as well as other agencies, are making efforts to help lessen this disproportion. From the Minority Business Enterprise Program (MBEP) webpage: “The Minority Business Enterprise Program is in place to help minority, women, and veteranowned businesses participate in the city’s procurement process. The success of minority-owned businesses is vital to the community because they contribute to the overall success and economic viability of Lexington.”

Lexington’s Central Purchasing processes millions of dollars of purchasing contracts for the city of Lexington. The city has established a “Ten Percent Goal Plan” to increase the number of minority, women, and veteranowned businesses participating in the procurement process. The MBEP exceeded its 10% goal for MBE and WBE combined in 2017; that percentage may increase further as the remaining 2017 contracts are awarded. The goal for Veteran participation is 3%, but that number cannot be tracked at this time. See the following chart from the MBEP:

PERCENTAGES OF MBE/WBE CONTRACTS AWARDED IN 2015-2017 SOURCE: SHERITA MILLER, MINORITY BUSINESS ENTERPRISE PROGRAM, LFUCG PURCHASING

The MBEP offers a long list of services to assist minority, womenowned, 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.

“WE NEED MORE MUNICIPAL SUPPORT FOR WOMEN & MINORITY BUSINESSES.” -LEXINGTON RESIDENT

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DIVERSITY POLICY #4 ENCOURAGE TRAINING, PROGRAMS, & WORKFORCE INCLUSION OPPORTUNITIES FOR PEOPLE WITH DISABILITIES OR JUDICIAL RECORDS, OR WHO HAVE UNDERGONE REHABILITATION FROM ADDICTION. The Opportunity for Work & Learning (OWL) is a non-profit organization that has helped 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.

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 should continue to be explored and expanded.

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

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DIVERSITY POLICY #5 MAXIMIZE CONTEXTSENSITIVE 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.

Communities that are eligible to become Opportunity Zones are in areas determined to be economically disadvantaged and must be nominated by the state.

The main 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

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distressed 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 downtown, north of downtown, to the southwest and northwest of downtown, and in older areas within New Circle Road.

There are some small to medium vacant properties within the areas, but the majority of the development potential will be adaptive reuse of existing buildings. This should provide ample opportunities for creative place making that will enhance the existing neighborhood while providing new employment prospects that are walkable, bikeable, or on a transit route.

Redevelopment should be context-sensitive by prioritizing businesses and employment that can be utilized by existing residents and respecting the vernacular architecture to enhance the surrounding neighborhood.

U.S. TREASURY DEPARTMENT CERTIFIED OPPORTUNITY ZONE TRACTS IN FAYETTE COUNTY U.S. TREASURY DEPT

ACTION ITEM EXPLORE RECOMMENDATIONS TO PROMOTE DEVELOPMENT AT SPECIFIC SITES WITHIN OPPORTUNITY ZONES, WHILE MINIMIZING DISPLACEMENT.

MORE LOW-INCOME HOUSING, ACCESS TO SERVICES & SHOPPING. PROMOTE JOBS CLOSER TO THESE NEIGHBORHOODS BY OFFERING TAX INCENTIVES & OTHER “PROVIDE

INCENTIVES FOR DEVELOPMENT IN THESE AREAS.” -LEXINGTON RESIDENT JOBS & PROSPERITY

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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.

The U.S. Census Bureau states in its report, Working at Home is on the Rise, that the number of home-based workers increased by 4.2 million between 1997 and 2010. In addition, the American Community Survey, by the U.S. Census Bureau, shows that, between 2010 and 2017, the number of home-based workers increased by another 2 million.

The report also states that there has been a 69% increase in homebased work in the computer,

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engineering, and science occupations. However, one in four home-based workers, which equals about 3.4 million workers in the United States, are employed in the management, business, and financial occupations. The U.S. Census Bureau defines “home-based worker” as a person who works exclusively or part of the time from home.

Lexington-Fayette County’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.

ACTION ITEM UPDATE ZONING ORDINANCE REGULATIONS RELATED TO HOME OCCUPATIONS AND HOME OFFICES

"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."

-LEXINGTON RESIDENT

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

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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 lesserskilled 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. It is important that there is available land to bring in higher-paying jobs that will benefit the community.

Attracting a young and enthusiastic workforce: Creating a livable city is an important part of attracting the millennial workforce. They crave experiences and place making and interesting, unique, and authentic cultures. Lexington does have a unique culture and one 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.

IMAGINE LEXINGTON

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 may also allow 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 TIF, have to meet certain conditions to qualify for the financing; those conditions include 40% of the households being of low-income. Residents of Opportunity Zones could benefit through jobs created by construction, but also from future employment in development projects.

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, Electrical, Carpentry, and Facility Maintenance.

Students in the HVAC, Plumbing, and Electrical programs will be eligible to take state licensure tests.

CONSTRUCTION AT CENTERPOINT, DOWNTOWN LEXINGTON

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POLICY #2

SUPPORT THE CONTINUED FUNDING FOR ECONOMIC DEVELOPMENT GRANTS & THE COMMONWEALTH INFRASTRUCTURE FUND, AS WELL AS LEXINGTON’S PUBLIC INFRASTRUCTURE FUND. The Lexington-Fayette Urban County Council started an Economic Development Grant to help with “funding projects that

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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.

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.

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

Six Kentucky banks have launched the $150 million Commonwealth Infrastructure Fund (CIF), which is a private fund to support publicprivate partnership (P3) projects in Kentucky. The P3 was passed

last year (HB309) to establish a process for local governments to partner with private firms to finance large capital projects that might not be otherwise possible.

The funds can be used to repair and replace roads and bridges, water and sewer systems, student housing, and treatment centers.

Further, funding for Lexington’s own Public Infrastructure Fund, which has been stalled recently, should also be strongly considered as a method to help promote the Comprehensive Plan’s infill and redevelopment priorities.

IMAGINE LEXINGTON

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, 23% of the Rural Service Area (28,953 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

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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 showed a rebound from the recession in 2011 and 2013 sales, but a leveling off between 2013 and 2017, with a slight upward turn in 2017. When adjusting the Keeneland sales for inflation over 17 years, the sales in 2017 were $374,900,540 lower than they were in the year 2000, or about half as much in Keeneland sales dollars in 2017 as there were in 2000. Sales appear to be holding steady, but have yet to approach pre-recession levels. Hopefully, initiatives like Horse Country tours, which are trying to build a new base of race fans, will help to bolster sales and increase interest in the sport.

Horse Country’s website states that their mission is to, “Connect guests to the horse, land, and people through experiences that inspire love of the animal and Kentucky.”

Over the past three years, Horse Country, Inc., has sold 72,222 tour

IMAGINE LEXINGTON

tickets to horse farms in Lexington and four other counties. There are a number of other tour companies, as well as individual horse farms that give tours. These tours should be publicized as much as possible, since they showcase a unique asset in Lexington that is not found anywhere else in the world.

Another driver of the agricultural economy in Lexington is The Bluegrass Stockyards, founded in 1946. The Bluegrass Stockyards’ new 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-

2000-2017 KEENELAND HORSE SALES SOURCE OF KEENELAND SALES $: 2003-2017 WWW.KEENELAND.COM, AND 2000-2002 KENNETH BURDINE, PHD., AG ECONOMICS, COLLEGE OF AGRICULTURE, UNIVERSITY OF KENTUCKY. SOURCE OF HORSES SOLD AT KEENELAND: WWW.KEENELAND.COM. SOURCE OF INFLATION CALCULATION: BUREAU OF LABOR STATISTICS, INFLATION CALCULATOR.

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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 Research Pilot Program, which is authorized by state and federal law. Industrial Hemp remains a Schedule I Controlled Substance under state and federal law. 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. To date, more than 50 processors/ handlers have obtained licenses in the KDA Hemp Program, which began in 2014. In 2017, there were 3,200 acres planted, with 2,300 acres harvested. Additionally,

opportunities may exist to build on the craft brewing trend and the distilleries close by, with the potential for growing hops for beer production and corn for bourbon.

Lexington is not only a popular destination for drinks, but also for the variety of restaurant offerings including ethnic, organic, and locally grown menu items.

Millennials are attracted to eating out more than at home,particularly to restaurants offering sustainable, locally-grown and organic food.

Locally-grown food should continue to be promoted in Lexington and sold in Lexington grocery stores and restaurants.

Ashton Wright, PhD., is Lexington’s first Local Food Coordinator. She manages the Bluegrass Farm to Table program, works with Fayette County Public Schools, and helps get local fruits and vegetables onto the plates of low-income residents with a program to provide SNAP vouchers to increase the amount of local produce benefits. Lexington farms can make value-added products from the produce items they raise; in addition, farm owners can apply for a conditional use to run a gift shop where they could sell their locally made products.

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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 fiberoptic cables, transmit huge amounts of data, literally at the speed of light. Even as wireless technologies improve, and the community prepares for the next generation of 5G wireless technologies, the backbone of that digital network is still going to need to have a landline.

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.

KyWired, a public-private partnership, is positioning Kentucky to be a national leader in high-

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. When complete, Lexington will be the largest city in the country with a citywide fiber-optic network.

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. Construction of the network is expected to be completed within three years.

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METRONET CONSTRUCTION PROGRESS MAP

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, and events of all kinds, plus great maps, with one of them showing the locations of 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

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horse business tours are getting very popular. Ticket sales data shows that from October 2015 to June 2018 there have been a total of 72,222 tickets sold, or an average of 21,688 ticketed tours per year by Horse Country, Inc. That number does not include other horse farm tours by other tour agencies’ sales.

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.

PROSPERITY

POLICY #6

PROMOTE KENTUCKY PROUD & LOCAL LEXINGTON PRODUCTS USING UNIFIED BRANDING.

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.

The Kentucky Department of Agriculture’s Kentucky Proud program is funded by the 1998 Tobacco Settlement. Registered members get marketing assistance, promotional materials at cost, grants opportunities, no-cost meat grading, international marketing, 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.

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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

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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.

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POLICY #8

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

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Lexington has public and private post-secondary education institutions awarding thousands of degrees and certificates each year.

Some of these graduates find jobs in their career fields in Lexington, some in other counties, some other states, etc. If a graduate desires to stay in Lexington but cannot find jobs in their desired field, it is either because there are not enough jobs in their field, or the degrees are not matching the job demand.

In looking at the degrees conferred from University of Kentucky and Bluegrass Community and Technical College over the years 2006-2016, a total of 68,777 college degrees were awarded, but only an increase of 16,454 jobs over that same time span. This did not take into consideration all the degrees awarded from private colleges in the area. Making sure there are degree programs for occupations with existing or

projected demand is important to fill the job openings in Lexington.

The James W. Stuckert Career Center at University of Kentucky 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 year of high school’ advise students

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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.

Comparing trends in college degrees to which industries students report working in after school reveals insights

into the jobs that are available, and which industries should be promoted to retain more college graduates in Lexington.

graduates work after completing some college or an Associate’s degree. Both of those industries have low wages on average.

The chart below (LEFT) from the Kentucky Education Cabinet shows that Retail Trade and Accommodation and Food Services industries are the top industries where the 2010 Fayette County high school

The following chart (RIGHT) shows where the 2010 Fayette County high school graduates work after completing a bachelor’s degree or higher degree. Retail trade is still prominent, but Educational Services is now the highest employer.

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Noteably Accommodation has fallen, and some of the higher paying professional industries have surpassed it.

ACTION ITEM PERFORM ANALYSIS OF EXISTING EMPLOYMENT OPPORTUNITIES & GRADUATE SUPPLY FROM AREA INSTITUTIONS

CERTIFICATE, DIPLOMA, SOME COLLEGE, OR ASSOCIATE EARNERS ONLY

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POLICY #9

RECRUIT PROFESSIONAL SERVICES THAT UTILIZE VACANT OFFICE SPACE. According to several industry professionals in Lexington, there is a surplus of vacant professional office space. Reviewing NAI Isaac’s 2017 Market Report, the vacancy rate for office space is around 12%, with over a million square feet of available space throughout the urban service area. This is a significantly higher vacant rate than either industrial or retail. Market trends indicate a change in the demands for office space that utilizes less square

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footage per employee. Many of Lexington’s existing office users are likely consolidating space faster than new businesses are being found to absorb that space.

This market correction is likely to continue for the next few years. In the meantime, Lexington should look to find new types of uses that can share some of that space, as well as seek to modify some of the square footage to other uses that might be complementary to the existing businesses.

ACTION ITEM

STUDY THE EFFICACY OF THE PROFESSIONAL OFFICE ZONE, LOOKING FOR ORDINANCE REVISIONS AIMED AT REDUCING VACANCY RATE

PROSPERITY

POLICY #10 ENCOURAGE FLEXIBLE PARKING & SHARED PARKING ARRANGEMENTS. Parking demands operate on a peak and off-peak schedule depending on related land use.

Taking advantage of distinct but complementary patterns, such as office parking that is generally empty in the evenings and on weekends, and residential parking that is generally utilized more in the evenings, offers an opportunity for Lexington to better satisfy residents and commuters without increasing parking supply.

Shared parking is a land use/

development strategy that optimizes parking capacity by allowing complementary land uses to share spaces, rather than producing separate spaces for separate uses.

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. On the horizon, driverless cars and mass transit options 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.

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PROSPERITY

POLICY #11

training for a higher paying, indemand 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, and new programs and ideas should be developed to continue to grow the talented workforce so many employers are seeking.

EXPAND JOB OPPORTUNITIES THROUGH EDUCATION & TRAINING TO RETAIN EXISTING BUSINESSES & ATTRACT NEW ONES. One of Bluegrass Community and Technical College’s (BCTC) 45 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

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POLICY #12 WORK WITH THE MAYOR’S OFFICE TO CREATE A LONGRANGE PLAN FOR THE 250 ACRES OF LEXINGTON’S PUBLICLY-CONTROLLED ECONOMIC DEVELOPMENT LAND AT COLDSTREAM RESEARCH CAMPUS. During the development of Imagine Lexington’s Goals

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& Objectives in 2017, amidst conversations with economic development professionals and a study of existing opportunities, a call was made for a publiclycontrolled business park. In response to Theme C Goal 3, city officials worked with the University of Kentucky (UK) to execute a land swap addressing Lexington’s need for employment land. The result was a transfer from UK of 50 acres that are “shovel ready” within the confines of the existing research park, as well as an additional 200 acres, currently

used as a dairy cow research farm directly adjoining the park. The site located between Georgetown Road and Newtown Pike offers a location near the interstate ideal for attracting high-wage jobs, creating employment options for Lexington and generating payroll revenue for the city.

existing Coldstream Master Plan and design criteria, and other opportunities for the site to maximize its potential.

ACTION ITEM CREATE A LONG RANGE PLAN FOR THE 250 ACRE ECONOMIC DEVELOPMENT SITE AT COLDSTREAM

Given this new vehicle for economic development, Imagine Lexington recommends a long-range plan to study the possible uses, infrastructure, layouts, synergies with the

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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 doing manual farm labor. Larger operations are more likely to use agricultural technology

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due to the cost of the equipment, while smaller operations or very specialized operations rely more on skilled manual farm labor.

Additionally, recently increased immigration enforcement compounds the concerns of the ongoing lack of farm labor. To legally bring farm workers from other countries to provide farm labor, the Federal H-2A program enables farm employers to recruit foreign nationals to the United States for temporary work.

However, some smaller operations don’t have enough work to go through the trouble of using the H-2A program. Larger operations, however, are using the H-2A program successfully. Many larger farms hire an H-2A broker to do the paperwork and process for them.

Kentucky is 7th of all the states for the number of farm workers that come under the H2A Visa program according to the Office of Foreign Labor Certification.

Examples of efforts to increase the supply of farm workers that could be done locally (some presently undertaken), would be to recruit or continue to recruit seasonal/ temporary farmworkers from students enrolled or graduating from Locust Trace AgriScience

Center, UK College of Agriculture, and other agriculture related education and training programs throughout the United States.

Another possible source may be second-entry workers trying to re-establish their lives after rehabilitation from addiction or from having judicial records.

There are also farm therapy programs for military veterans using agricultural therapy.

Examples of such programs are the West Virginia Veterans and Warriors to Agriculture program through the WV state agriculture department where veterans learn about Ag practices to harvest crops and grow food.

Also, 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. Educational and training programs that train farmworkers how to care for use agricultural technology and agricultural equipment should be maintained and increased.

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