Lexington Finalizes Master Plan for 2,800 Acres of Urban Development, First Since 1997

Lexington has finalized a master plan for the development of 2,800 acres that will soon be added to the city’s growth boundary. This decision follows over a year of discussions and debates, culminating in a vote by the Urban County Planning Commission on Thursday. This marks the first time since 1997 that land in the rural area is set for urban development.

The newly designated areas include land between Winchester Road and Interstate 64, portions around Interstate 75 and Athens Boonesboro Road, as well as locations near Parkers Mill Road and Man O’ War Boulevard. The plan envisions village-like neighborhoods featuring a blend of residential and commercial spaces, aiming to promote more walkable communities.

According to the projections in the master plan, the land could accommodate between 17,000 and 26,000 living units, addressing the city’s current housing shortfall. A recent housing study has shown that Lexington requires at least 22,549 housing units to meet its demand effectively.

The design is influenced by historic neighborhood models like Kenwick, which seamlessly integrates various housing types with retail and dining options. However, a significant element of the plan—dubbed “concurrency”—requires developers to construct retail and commercial spaces concurrently with residential units to foster vibrant neighborhoods. Critics raised concerns over potential hindrances to development resulting from this concurrency requirement, particularly regarding financing and bank loan approval processes.

During the commission meeting, several members expressed mixed feelings about the requirement. Planning Commissioner Bruce Nicol voiced apprehension, stating that it could impose significant barriers to financing. In contrast, Commissioner Robin Michler defended the stipulation, arguing that it was reasonable for the scale of development planned.

Acknowledging these concerns, the commission adjusted the concurrency requirement to mandate retail or commercial space after 40% of the residential units are completed, rather than the original 20%. This decision aims to strike a balance, allowing for necessary retail construction without unduly delaying housing development.

Planners estimate that the entire build-out of the 2,800 acres will take decades, and significant work remains to be done to explore the financial implications of this expansion. The city plans to invest $750,000 in a study to determine the cost-sharing approach for this project, building upon a preliminary estimate of $570 million in total expenses, with developers expected to shoulder approximately 90% of the costs.

This comprehensive master plan represents a crucial step towards accommodating Lexington’s growing population and advancing urban development thoughtfully while maintaining the essence of community-centric design.