Our Urban Core

Places that thrive in today’s knowledge based economy are distinctive, attractive, and rich in amenities. A strong Urban Core gives knowledge-based professionals the quality of life they prefer.– International Economic Development Council, 2007

50% of Americans prefer an urban model of living-walkable downtowns, smaller living spaces, and mixed-use development.
– Volk and Zimmerman

There are currently over $500 million dollars in downtown development projects under construction or on-line.
–Downtown Development Authority, 2007

These projects range from mixed-use, residential, and commercial developments.
–Downtown Development Authority, 2007

Since 2004, more than 250 new residential units have opened downtown, 384 are under construction and 276 are in the planning stage.
–Downtown Development Authority, 2006
–Lexington Herald-Leader Editorial, October 1, 2006

Over 27,000 people work downtown, there are over 80 places to eat and shop, there are 15 local and national historic neighborhoods, and numerous art galleries, theatres, and concert halls.
–Downtown Development Authority, 2006

The second favorite thing Lexingtonians like about their city is downtown.
– LFUCG Division of Planning, Comprehensive Update Library Survey, 2005

The UK Med Center has created over 2,000 direct jobs and added $215 million to local payroll and benefits.
– Business Lexington, July 11 2008

According to latest projections, hospital business in 2008 will approach $800 million, which equals $1.3 billion overall
– Business Lexington, July 11 2008

Since 2003, UK Med Center patient discharges have increased to 70%.
– Business Lexington, July 11 2008

Downtown and urban living create a quality of life attractive to knowledge based professionals.

Despite these trends, we still have work to do. Although Lexington-Fayette County is the 10th most college-educated city in the U.S., Forbes ranked Lexington 120th in job growth, 157th in culture and leisure, and 200th in income growth out of 200 U.S places for business careers. This is an alarming trend, considering Lexington relies on payroll taxes for 85% of its revenues.
– U.S. Census Bureau, 2007
– Forbes, 2007

In addition, KY ranks 45th in knowledge-based jobs and 49th in economic dynamism.
– The Information Technology and Innovation Foundation, 2007.

Lexington is ranked the 10th Brainiest city in America, in which 39.5% of people over 25 years of age have a bachelor’s degree. Yet, we are losing our young professionals at a steady rate. The proportion of 20-somethings in Lexington’s population was 19.9% in 2004, and 16.9% in 2006.
– Guide to the Bluegrass, Commerce Lexington, 2008; “Vitale Buford”, Business Lexington, November 30th 2007.

To expand the urban service area at this time will take needed markets and resources away from downtown during a critical stage of its rebirth-undermining our ability to recruit and retain knowledge-based professionals.

In Fall 2006, the Federal Reserve Bank of Cleveland, whose district includes this region, said signs are that “the bottom of the market has yet to be found.”
– Lexington Herald-Leader Editorial, October 1, 2006

In 2005, Fayette County had 13,086 vacant housing units, or 33.7.25% of total housing stock.
– U.S. Census Bureau, American Community Survey

In 2007, Fayette County had a 33.7% increase in foreclosures.
–Lexington Herald Leader, September 11th, 2007.

Construction of new homes in Fayette County is down 20% from 1997.
– U.S. Department of Commerce, 2007

Planning and growth models affect various aspects of our quality of life- including transportation, food prices, and affordability.

Fuel , Transporation and energy drive retail food prices. An expected increase of about 5% in retail food costs for 2008 breaks down like this:

• • 44% Fuel, Transporation & Energy
  • 29% Raw Farm Products
  • 19% Labor Costs
  • 8% Other Expenses

–Amercian Farm Bureau Federation

In addition, Many Lexingtonians want to live in the urban interior because they don’t want to deal with traffic and their families are getting smaller. In fact, the “cost of owning and operating one car is estimated to be $10,000 a year-which roughly translates to a $100,000 mortgage.”
–“In Housing, Smaller is Big”, Planning, the American Planning Association, December 2006.

Lexington’s peak travelers experience 38 annual hours of delay in 2005, while they only experienced 18 hours in 1995.

– Transportation for America, 2009

Research shows that a compact mixed-use development can reduce automobile use by 5-15%. 
– Duerksen, Chris. Saving the World through Zoning, Planning, The American Planning Association, January 2008.

Lextran has steadily been increasing its ridership since 2001.  Bus ridership in Lexington has increased 11.5% in Lexington from 2007-2008.

–Transportation for America, 2009

In 2007, the League of American Bicyclists named Lexington a Bronze Level Bicycle Friendly Community.
– Guide to the Bluegrass, Commerce Lexington, 2008.

Moreover, our demographics are changing in Lexington. 72% of all new residents in Lexington are singles and childless couples under the age of 30.
– Zimmerman & Volk, 2004

And, on average, only 2.3 persons live in Fayette County households.
– U.S. Census Bureau, American Community Survey

In fact, by 2010, nearly 75% of households will not have children at home.
– Bluegrass Tomorrow, 2007

There is a huge opportunity to accommodate needed affordable housing inside Lexington’s urban core.

34% of new jobs will pay less than $20,000/yr. Downtowns are the most affordable place to live because amenities and essential services are close to residential development-substantially cutting transportation costs.
– Bluegrass Tomorrow, 2007

Yet, up to 90% of welfare recipients do not own a car, and yet 2/3 of job growth in the United States occurs in the suburbs.
– The Right to Transportation, Planning, The American Planning Association, January 2008.

Unlike the National Average in which downtown property is 2 times the cost of suburban property, the average downtown property is 1 ½ times the cost of suburban property in Lexington-Fayette County.
– Business Lexington, October 5th 2007

Opportunities are there, and the need for affordable housing is even greater. An alarming 18.1% of all renter households in Lexington now pay more than 50% of their gross income for housing. Meanwhile, the federal commitment to affordable housing has shrunk more than 80% in the last 25 years.
– LFUCG Affordable Housing Trust Fund Report, 2008.

In addition, the Section 8 waiting list is closed and the application process for section 8 housing has been suspended.
– Lexington Housing Authority website, August 2009.

Lastly, for those earning Fayette County’s median income of $47,000 / year, 56-71% of houses in Lexington are out of their price range.
– HBAL & LBAR Affordable Housing Study, July 2009.

In light of these facts, it’s apparent that Fayette County is primed for an innovative growth model—one that incentivizes developers to build well-designed, mixed-use, and affordable housing units in our urban core and suburbs, while preserving our finite Bluegrass landscape on the perimeter for its branding, quality of life, and economic development value.