Coldstream Land Swap MOU
This week, we're focusing on a presentation in Tuesday's Council Work Session on the Memorandum of Understanding between the Lexington-Fayette Urban County Government and the University of Kentucky on the "Land Swap" out in Coldstream.
Craig Bencz, Administrative Officer Senior, will give this presentation on Tuesday around 3:00pm - you can watch the presentation on LexTV.
Why is this important?
One of the primary debates at the heart of Lexington's civic landscape is how to grow our City sustainably.
The debate boils down to how we maintain the unique rural landscape preserved by our Urban Service Boundary while providing the needed land for residential and commercial development.
The presentation made by AOS Bencz will highlight the terms of this deal. It will likely also reveal council members' perspectives on this development's future and economic development in Fayette county more generally.
If this land swap does indeed lead to additional employment opportunities in Lexington, this could positively impact the City's struggling budget, though this is likely many years away.
What did Lexington-Fayette Urban County Government get out of the deal?
LFUCG is getting control of 250 acres of developable land in the Coldstream area. You can see those areas here.
These 250 acres are part of UK's total ownership of 735 acres in the Coldstream area. UK is planning to develop a research park that includes housing, office space, and hotels on the remaining land.
These 250 acres are in two large areas in different parts of the Coldstream site - one on Citation Boulevard (50 acres) and one near I75/64 on Georgetown Road (200 acres).
LFUCG will also receive revenue through the Payroll and Net Profit taxes from any new jobs created on-site. The nearby Bluegrass Business Park brings around $3M in revenue to the City annually on its 100-acre site.
Citation Blvd. Site
Lots on the 50 acre Citation Blvd. site are immediately available for purchase from the City. The revenue generated by the acquisition of lots in this area by private developers will be split 50/50 by LFUCG and UK.
The City plans to use these proceeds to add infrastructure (think roads, sewer, electric, etc.) to Georgetown Road's 200-acre area.
The UK will use its proceeds to improve its Coldstream property or move existing operations off the Georgetown Road area acreage.
Any new development will be subject to UK's Coldstream Design Guidelines.
A&W Root Beer has already purchased 3 acres of the Citation Blvd. area for a new National headquarters.
Georgetown Road Site
The ~200 acres on Georgetown Road haven't been transferred to the City yet - that process will happen between January and June of 2022.
Once LFUCG owns this site, they will begin selling lots to interested developers.
Unlike the Citation Blvd. area, LFUCG will keep 100% of proceeds from property sales.
What did the University of Kentucky get out of the deal?
UK got control of around 25 streets near the University's campus. You can find those streets here.
City services will continue on these streets, but UK will take responsibility for maintenance, including paving and pothole repairs.
UK will also have the authority to close some of the streets it receives to vehicular access, similar to what has happened on Rose Street.
UK is not able to restrict car access to these streets unless it owns all adjacent property. If UK does close a road, it must provide LFUCG with 90 days notice.
Transportation Safety Improvement Plan
UK, LFUCG, and other stakeholders will work to develop a Transportation Safety Improvement Plan for these streets, focusing on:
Safety and infrastructure improvements
Enhanced way finding
Traffic mitigation and calming devices
This plan will focus on three specific areas affected by the land swap:
Neighborhoods surrounding campus
South Limestone/Nicholasville Road
Avenue of Champions
What else do I need to know?
Coldstream's TIF District
This project is impacted directly by a Tax Increment Financing (TIF) District that spans the entire 735-acre site at Coldstream.
TIF Districts are controversial tools for Economic Development that provide tax benefits for developers in exchange for development viewed as taking place in an area with a higher risk for return.
Many scholars have labeled TIF Districts as ineffective solutions for Economic Development.
New developments at this site will receive partial rebates for the property, sales, and withholding taxes they pay over the next 20 years. The total will not exceed ~$4.6M to the state and potentially ~4.6M to the City over 20 years.
This TIF District, which was smaller than requested, potentially takes away some of the desperately needed positive budgetary impacts this project could have on LFUCG.
Relevance to the Comprehensive Plan
The Comprehensive Plan directly mentions the land acquired in the Coldstream swap - a rare reference to a specific location - and the swap directly achieves three Goals laid out in the plan.
The debate over whether or not to expand the Urban Service Boundary to allow for more developable land for economic and residential development in the 2018 Comprehensive Plan was contentious. The announcement of this swap came the day before a crucial vote on the Comp Plan.
With the narrow vote on approval, it is likely this swap swung the council in favor of approving the Comprehensive Plan.
Get Involved:
Want to listen to this meeting live?
Tune in on Tuesday at 1pm on LexTV.
Want to see the legislation?
Want to weigh in on this issue?