Will the City of Lexington sell some of its properties?
Why should I care?
City Government owns a significant amount of property and real estate across Lexington. While the City Government does use most of them for internal uses, many are public-facing, and some even house organizations or businesses outside of the City Government. With the City’s financial prospects still uncertain, selling some of the City’s properties could ease expenses and bring additional revenue. At the same time, this could cause dramatic shifts in services and, potentially, the displacement of organizations that rent from the City.
Update - February 1, 2021
This subcommittee is recommending the city sell or surplus three buildings:
ArtsPlace
The Morton House
Old Fire Station #2
During the meeting, we heard from the Committee’s Chair, District 10 Council member Amanda Bledsoe, that the sale or surplus of these buildings will be a long term process. She commented that the group is in talks with other parties, but that nothing will happen quickly. She said the subcommittee will be meeting again on February 11. The plan will be to move forward with conversations on these properties, but that Council would have to agree to move property to an outside jurisdiction, before beginning negotiations.
CAO Sally Hamilton added that the administration has looked at these properties, outlined a procedure to address them and that they are ready to report back to Council.
CM James Brown asked what criteria the group was using to determine buildings to sell or surplus.
Per CM Bledsoe, they are considering current use, community benefit, value, property ownership, occupancy, financial impact, and value to community as deciding criteria.
CM James Brown mentioned that he supports the motion, but wants the city’s intent to be more publicized. He wants to make sure the communities in which the buildings are located understand that the City is considering cultural significance in addition to the cash value.
CM Bledsoe then issued a Motion to instruct the administration to continue this process of transfer with ArtsPlace, with the possibility of exploring opportunities with LexArts, the Morton House, and Old Fire Station #2.
CM Plomin then asked if the properties were aware of these discussions. CM Bledsoe answered that the properties were.
CM Moloney asked if the Division of Purchasing could issue an RFP for bids on the Fire Station. CAO Hamilton answered that the administration intends to have a discussion and site visit with Fire to see what they are doing and what they want to do. At this time, it’s believed that the building is being used for storage and as a training facility. If that’s the case, they don’t want to displace operations without a suitable replacement lined up.
CM LeGris said she has been in conversation with some of the City’s arts partners. She stated that she supports the motion to being in conversation, but hopes there will be more opportunity for community input.
After this discussion, the Committee voted to pass the motion unanimously. Since this is an ongoing topic, we’ll continue to monitor the city’s plans for these buildings and keep you informed of any new decisions.
This week, we’re covering a presentation in the Budget, Finance, and Economic Development Committee on Tuesday, January 26. This presentation will focus on current plans for the uses of buildings the City owns.
Watch this meeting live on LexTV on Tuesday, January 26 at 1:00p
Properties recommended for sale
This subcommittee is recommending the City sell or surplus three buildings:
ArtsPlace, located downtown at 161 N Mill Street, is the current home of LexArts and many influential arts organizations, including the Central Kentucky Youth Orchestras, Lexington Ballet, Lexington Philharmonic, and more. The subcommittee is recommending that the City work with LexArts to see if they have an ownership interest. If they do not, then the City should sell the building. The subcommittee is also requesting that the City “...explore alternative space options for the existing organizations to avoid displacement...”
The Morton House, located in Duncan Park in Lexington’s MLK Neighborhood, houses the social service organization The Nest. The subcommittee is recommending that the City attempt to sell the Morton House to the Nest. If that does not work, they suggest that the issue come back to them for further review.
Old Fire Station #2, located on New Circle Road in Lexington’s northside, is also recommended by the subcommittee for sale.
Other City-owned properties fall into a few categories:
Properties that were never considered for sale at the beginning of this process.
Properties not currently recommended for sale.
Properties with specific recommendations.
Properties to be reviewed for “Best Uses of Space.”
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Properties that were never considered for sale at the beginning of this process:
The subcommittee excluded these properties from consideration for sale at the beginning of this process:
Fire facilities
Wastewater and stormwater treatment properties
The Fayette County Detention Center
Waste Management facilities
Parks and Recreation greenspaces
City-owned Golf Courses
City-owned Aquatic Centers
Properties not currently recommended for sale.
For a variety of reasons, the City is recommending that the following buildings not be considered for sale:
Downtown Buildings: Government Center, Government Center Annex, Phoenix Building, Switow, Police HQ
Red Mile Campus: Audrey Grevious Center, Family Care Center, Family Care Center Annex (HANDS), Safety City, PSOC, Coleman House
Streets & Roads Complex: Building 1, Building 2, Salt Barn, Storage Building
General Services Complex: General Services Building, Traffic Engineering Operational Center, Facilities Management Storage Building
Furrows Complex: Building 1, Building 2, Building 3
Coroner’s Office
Byrd Thurman Complex: Fleet Management Operation, Police Units Parking, Waste Management HQ, Waste Management Equipment Storage Barns, CNG Fueling Station, Police K9 Operations Center
Police West Sector Complex: Police West Roll Call, Police Training Center
Police Technical Campus: IT/Technical Operation, Fit-up Center for Police Units, Police Equipment Storage Center
Waste Management Recycling Center
Senior Citizens Center
Properties with specific recommendations.
While the subcommittee did not necessarily recommend these properties for sale, they did present unique circumstances that required individual recommendations for a path forward.
Carnegie Center: LFUCG currently leases this facility from the Lexington Public Library. The subcommittee recommends that the City initiate a conversation with the Lexington Public Library to identify options for the Carnegie Center. They also request that any discussion include Transylvania University because of their past interest in purchasing the property.
Downtown Arts Center: LFUCG leases this property from the Commonwealth of Kentucky. The subcommittee recommends that the City pursue ownership from the State.
Police Mounted Patrol Center: This property - where the city stores horses as part of its mounted patrol - is located in the middle of the residential Smithtown and Northside neighborhoods. The subcommittee recommends that the City consider relocation opportunities for the facility and get a general estimate for selling the property to private developers.
The Bell House: This facility, located in the Bell Court neighborhood, is under review and may later be recommended for sale.
The Kentucky Theatre: This beloved downtown institution is maintained by LFUCG and the Friends of the Kentucky Theatre. The City recommends that it pursue a public-private partnership for management and better use; if that doesn’t work, then consider this review again.
Properties to be reviewed for “Best Uses of Space”
The subcommittee recommends that several other properties remain in consideration by the subcommittee.
The Lyric Theater is recommended for the highest level of review. Specifically, “in recognition of maintaining the property as a community asset and LFUCG’s need to reduce its contribution, it is recommended that the Lyric Theatre explore how to better maximize revenue.”
Park Buildings and Neighborhood Centers should be reviewed by the City of Lexington and Parks Advisory Review Board for recommendations on if the City should sell them. These include:
Castlewood Community Center
Loudoun House
The following Neighborhood Centers: Coolavin, Douglas, Gainesway, Green Acres, Highlands, Lou Johnson, Marlboro, Martin Luther King, Meadowthorpe, Oakwood, Valley Park, Whitney Young, Woodhill, Picadome
All other City-owned buildings will be in review by this subcommittee. This includes: Artworks at Carver School, Aubrey Grevious Center, Black & Williams Center, Charles Young Center, Coleman House, Dunbar Community Center, Family Care Center, HANDS (FCC Annex), Kenwick Community Center, Operational Adjustment Center
Want to get involved? Here's how.
Reach out to relevant nonprofit organizations - LexArts and the Nest would be good places to start
Apply to be on a Board or Commission - good options with vacancies (as of 1/28) for this issue would be: Black & Williams Neighborhood Community Center Board, Charles Young Center Advisory Board, Dunbar Neighborhood Center Board, Greenspace Commission, Lyric Theatre and Cultural Arts Center Board of Directors, Masterson Station Park Advisory Board, Vacant Property Review Commission