Our City

Lexington has the potential to become one of the truly unique, human-scale, and vibrant cities in America.

Lexington Center | Photo by Jeff Rogers, www.jeffrogers.com

Lexington has a burgeoning downtown, along with remarkable historic and established neighborhoods, and some of the most productive and beautiful farmland in the world on the perimeter of the city.

Our history as the “Athens of the West” as well as our current identity as the horse capitol of the world are a great foundation for building a destination that can compete both aesthetically and culturally with the great urban centers of today.

Downtown design and character is essential to the “heart” of any city, and in turn, its economy.

For example, each year, 4 million visitors go to Charleston just to walk its historic streets—translating into billions in revenues, business development, and thousands of jobs in the community. These are impressive numbers, especially in light of today’s economic down-turn.

Design standards will help provide a structured system for new development, encouraging needed growth and investment inside our city.

Aerial View of Lexington

It is important to balance design standards with a clear path and incentives for development. The goal is not to impede new growth, but rather to streamline what is otherwise a daunting process for designers, planners, neighborhoods and developers alike. If a balance between these interests is accomplished, this system will result in development that is a “win-win” to both the developer and community.

The design and character of new development is a BIG deal—impacting surrounding property values, quality of life, and economic activity.

Lexington is currently in the process of evaluating and developing a set of design guidelines for our urban core.

In August 2010 LFUCG formed a Design Guideline Taskforce to assess and develop a set of standards for downtown design excellence. This taskforce was formed in part as a response to the controversial Centrepointe and downtown CVS development projects, both of which ultimately fell through. Learn more about the Downtown Design Taskforce. In the Spring of 2011 discussions of redeveloping or renovating Rupp Arena began. Since those early discussions, the project has grown into the emerging Rupp Arena Arts & Entertainment District. As Lexington continues to grow and redevelop its urban assets, the need for an innovative and creative way to ensure design excellence also grows. Learn more about Rupp and the Arts & Entertainment District project.

LFUCG Design Taskforce Page
“Rupp Arena Discussion Leads to Other Parts of Downtown Lexington” by Tom Eblen, The Lexington Herald-Leader, 12.13.11
“Mayor Appoints Task Force to Study Rupp Arena’s Future” by Cheryl Truman, The Lexington Herald-Leader, 12.13.11
“Rupp Concep Embraces Optimism” by Tom Eblen, The Lexington Herald-Leader, 12.4.11

Downtown Music Festival | Photo by Jeff Rogers, www.jeffrogers.com

The average household in Lexington has shifted more towards young adults and small units.

Our demographics are changing in Lexington. 72% of all new residents in Lexington are singles and childless couples under the age of 30. And, on average, only 2.3 persons live in Fayette County households. In fact, in 2010, nearly 75% of households did not have children at home.

Young professionals moving into our city have increased the demand for downtown living, entertainment, and alternative transportation.

Many Lexingtonians want to live in the urban core of our city because they don’t want to deal with traffic, and their families are getting smaller.  A Young Professional Recruitment Survey completed by Toyota and Lexmark in 2009 found that young professionals were most interested in the lifestyle and culture of an area. Scoring high on the list of amenities valued by young professionals were affordable and appropriate downtown housing, more music, art, and restaurants. As Lexington’s population continues to grow and change these demands will continue to increase.

Rupp Arena and Lexington Convention Center | Photo by Jeff Rogers, www.jeffrogers.com

Recruiting and retaining young professionals is crucial to our economic development efforts here in Lexington. Today, over 77% of workers pick city first, job second. Corporations locate where there is a high concentration of knowledge-based, educated workers.

If we can create a world-class city in our already remarkable rural landscape, Lexington is primed for economic success…as over 20% Lexingtonians over the age of 25 has a higher education degree or attended college.

Especially with the onset of “Gen Y” young professionals, demand for suburban housing has decreased as they prefer to live in an urban setting.

According to the New York Times ¾ of prospective home buyers are now more inclined to live in an urban area. This is due mostly to the increased cost of fuel. This trend has been confirmed by the NAHB which recently released data showing that smaller, lower maintenance homes are selling faster than any other type. Steve Melman, the NAHB’s director of economic services, notes that Generation Y is entering their prime home-buying years with far different budgets and tastes than their boomer parents.

For More Information:

“In the Region—Housing Inventories on the Rise”, The New York Times, December 2008
Detroit Creative Cities Conference, 2008.
“Hope for Housing” by Greg Flisram Planning October 2010
“Fuel Prices Sift Math for Life in Far Suburbs, The New York Times, June 25, 2008
“Limited Options, Limited Draw”, Business Lexington, January 9, 2009
LFUCG Downtown Masterplan, Zimmerman & Volk, 2004
2005-2009 American Community Survey 5-Yr Estimates, U.S. Census Bureau
Bluegrass Tomorrow, 2007

Downtown Arts Center | Photo by Jeff Rogers, www.jeffrogers.com

Lexington is a growing city with a changing demographic.

Best estimates say that an additional 60,000 people will call Lexington home by 2030.

One of the central questions facing our community is not if we grow, but how we grow—and can we do it in a way that positions our built, natural, and social environments for success in today’s rapidly changing world? National and local market studies shed light on this complex issue. Surprisingly, our demographics are changing along with our housing preferences—determining how our community will look and function in the future.

Today’s typical homebuyers want smaller, denser, and more interconnected living environments.

Recently, The New York Times reported that “75 percent of home buyers over the next 15 years will have childless households… There is a historic reversal of home-buying demand away from suburban and rural areas to cities and inner ring suburbs that are more walkable than driveable…[It] is projected [there will be] a nationwide surplus of 22 million suburban homes…by 2025.”

Nationally, the single-family detached home in the ‘burbs has become less and less the housing unit of choice, when other options are available and affordable.

New Development at Main and Rose

And locally, Lexington-Fayette County is experiencing a similar transformation.

In 2009, LFUCG completed—with the help of several national and local real estate planning firms—a Housing Market Study that identified our demographic trends, available land for development, and preferred housing types and needs over the next twenty years.

The findings of this study were as follows: 1. There is an immediate need of quality housing for those with moderate incomes. 2. Lexington’s longer-term growth model needs to include denser home development such as condominiums, town homes, and small-lot single family units.  3. There is a need for a regulatory environment that facilitates well-designed, higher density mixed-use development.

Gratz Park | Photo by Jeff Rogers, www.jeffrogers.com

In order to pursue an innovative growth model LFUCG needs to implement some key changes.

The 2009 Housing Market Study also identified several needed LFUCG initiatives. The study showed that there needs to be more support for local affordable housing programs and changes need to be made to local land-use and zoning regulations. Some of these changes include site design, streetscape standards, and exploration of mixed-use districts.

These are necessary changes as the potential redevelopment areas may accommodate at least 19,000 new residential units under current land-use plans, and yet we will likely need 30,000 new residential units by 2030.

Click Here to read a more detailed analysis of the 2009 Housing Market Study.

In addition, Lexington’s carbon footprint is the largest among the nation’s 200 major metropolitan areas in large part due to our current notions of capacity.

The Brookings Institution, recently named Lexington as having the largest carbon footprint among the nation’s 200 major metropolitan areas. This means that the average Lexingtonian emits 2.5 times more carbon dioxide from transportation and housing than the average resident in Honolulu-the city with the smallest carbon footprint in America.

The study analyzed several scientific factors, and listed Lexington’s suburban sprawl-like development patterns, weak mass transportation systems, and the use of cheap coal for energy as the culprits of our excessive greenhouse gas emission.  Essentially, the more spread-out we are, the more land and resources each one of us uses to live, travel, and function.

With a new, sustainable growth approach we can decrease the size of our carbon footprint and develop in an environmentally sustainable manner.

Downtown Lexington

In its analysis, the Brookings Institution determined that metropolitan areas with compact, high-density development and rail transit have smaller per capita carbon footprints than low density, automobile oriented cities. As such, New York and Los Angeles consume less energy and emit fewer greenhouse gases, per capita, than Oklahoma City and Lexington.

So what is the answer? The Brookings Institution recommends that Lexington promote more transportation choices and compact development options in its land use model. In addition, it suggests that local government enact housing policies and location efficient development decisions to reduce our carbon footprint and get cleaner air.

Our carbon footprint crisis presents a historic opportunity for Lexington and the Bluegrass Region. Clearly, it affirms our commitment to innovative planning, urban revitalization, rural preservation and regional sustainability. If accomplished, this vision will achieve Lexington’s full promise. If not, our environment, quality of life, and future hang in the balance.

Click Here to download a copy of the Brookings Institution report. Click Here to download a copy of the “Brookings Institution Editorial” by Knox van Nagell, Executive Director of The Fayette Alliance.

Can we meaningfully respond to what our market is telling us, and implement targeted affordable housing and infill policies that make it easier for developers to do the right thing, without compromising our cityscape and iconic Bluegrass brand?

Lexingtonians say “yes”. In the recently completed Destination 2040 Project, the community articulated its “Physical Growth” vision by stating:
“We will protect and promote the signature rural landscape…continue the momentum to bring about a truly vibrant downtown, and ensure that all urban and suburban neighborhoods flourish. Acknowledging that the future will bring growth in population…[W]e will use proactive, cooperative regional planning to address change…while appropriately balancing the community’s needs.”

This is a tall order but we must follow suit. Our future depends on it.

By redefining our notion of capacity Lexington can become a visionary city with a sustainable land use system.

Lexington | Photo by Jeff Rogers, www.jeffrogers.com

Our current notion of capacity is not environmentally responsible or feasible.

For example, from 2000 to 2005, Lexington’s population grew a little over 3%, and yet housing increased nearly 10%. The 2010 census found that there are 12,117 vacant housing units in Lexington. Yet, despite these vacancies there is still a shortage of affordable housing. According to the 2009 Housing Market Study, Lexingtonians earning a median income cannot afford up to 71% of houses on the market today. There is clearly a disparity here, and we need to address this challenge imaginatively so that we can make our city both dynamic and equitable for all Lexingtonians. Ultimately, we need to re-define our notion of capacity, and establish a visionary land use system by which we can responsibly grow up, not out.

Click Here to learn more about affordable housing in Lexington.

For More Information:

“LFUCG Housing Market Study Op-Ed” by Knox van Nagell, published in The  Lexington Herald Leader, October 25, 2009
“In the Region—Housing Inventories on the Rise”, The New York Times, December 2008
The LFUCG Housing Market Study, 2009
The LFUCG “Aging in Place” Initiative, 2008
The LFUCG Division of Planning, 2006
U.S. Census Bureau
“Kentucky 7th in rising CO2 Emissions”,The Lexington Herald-Leader, June 21, 2006.
“Shrinking the Carbon Footprint of Metropolitan American”, Brookings Institution, 2008
“Projections of Total Population: State, ADDs, and Counties” KY State Data Center
“Investment Niche or Necessity? Climate Change, Land Use, and Energy 2009″, Urban Land Institute, 2009

Urban Residences

There is a shortage of affordable housing in Lexington.

According to the U.S. Department of Housing and Urban Development, the cost of an “affordable” home—including taxes, maintenance and other costs—should not exceed 30% of a household’s monthly income. This is particularly alarming since 18.1% of all renter households in Lexington spend more than 50% of their gross income on housing.

If no action is taken to increase the availability of affordable housing in Lexington, this problem will only get worse.

Between 2001 and 2009 the fair market rent of a 2-bedroom apartment in Lexington increased 26.88%. Nearly one quarter of that jump occurred between 2008-2009, when the average cost of rent for a 2-bedroom apartment increased from $679/mo to $729/mo. These sharp hikes are occurring at a time when economic strains have made it imperative that Lexington have more affordable housing.

In addition, according to an affordable housing study released by HBAL in 2009, moderate-income households can afford only 15% of for-sale housing in Fayette County. In addition, important public service employees—such as policeman, firefighters, and teachers—can afford only 14%-20% of available housing for sale in Fayette County. This is a real problem.

Downtown Lexington

An expansion of the Urban Service Boundary will not necessarily increase affordable housing in Fayette County.

Expanding the Urban Service Boundary will incur additional construction costs such as the expansion of sewage lines—whose cost will result in increased home prices. In 2006, LFUCG estimated it would cost an average of $16,000 an acre to “sewer” new expansion areas in Fayette County.

Building housing away from the city center pushes low-wage workers further from job opportunities.

If pursued responsibly and imaginatively, development inside our current city limits can result in much needed affordable housing—because location matters. For people with tight budgets and limited transportation options, this is especially true.

According to the American Planning Association, up to 90% of welfare recipients do not own a car. In addition, it’s estimated that the cost of owning and operating a car is the equivalent of paying a $100,000 mortgage—an expense that many cannot afford on top of other living expenses.

Click Here to learn more about how transportation affects our city.

Local Neighborhood

Land availability does not necessarily translate into affordable housing.

Arguably, limiting the supply of “developable” land through farmland preservation efforts increases property values—translating into higher home prices and decreasing workforce-housing supplies. However, Lexington’s track record tells a different story.

During the last major expansion of the Urban Service Area in 1996, developers did not take advantage of any affordable housing incentives in the 5,000 acre expansion Area—as offered in the LFUCG Expansion Area Masterplan. Further, with an estimated 20 square miles of land available for growth inside the Urban Services Area, we still have a shortage of affordable housing.  According to a recent HBAL study, Lexingtonians earning a median income cannot afford up to 71% of houses on the market today. So land availability does not necessarily translate into affordable housing.

There is still plenty of room within our current Urban Service Boundary to build needed affordable housing.

Vacant and Underutilized Space

It’s estimated there are 20,000 acres or 20.66 square miles of vacant and underutilized land inside our current city limits. According to the 2009 LFUCG Housing Market Study, this land could be used to create 14,251 new housing units. If properly incentivized, developers could build these units at affordable price-points, and close distances to jobs, grocery stores, and amenities inside the city—addressing the need for more affordable housing.

In the interests of building a city for everyone, while also preserving what makes us unique—we must be proactive about incentivizing affordable housing. Faced with increasingly limited and expensive natural resources and complex real-estate markets—we can no longer rely on the simple solution of more land and sprawl development to provide housing for all.

For More Information:

National Housing Conference Rental Rankings 2008-2009
“How Much You Should Spend On a Home,” The Wall Street Journal
“LFUCG Housing Market Study”, LFUCG 2009.
“Housing Affordability in Lexington KY”, Dr. Ken Troske, June 2009.
“Lafayette Seminar”, by Dr. John Powell, Gaines Center for the Humanities, 2006
“Urban Growth Simmers Again,” The Lexington Herald Leader, May 29, 2006.
“In Housing, Smaller is Big”, Planning, APA, December 2006
Lexington-Bluegrass Association of Realtors, 2007
U.S. Bureau of Economic Analysis, 2005
“Affordable Housing is a Public Food” by Beth Connors-Manke, North of Center, May 20, 2009