The Lexington Urban County Council approved Tuesday as much as $1 million in tax breaks for the Blue Grass Stockyards, part of an economic incentive package to help the stockyards move to a new location on Ironworks Pike.
The stockyards were destroyed in late January in one of the city’s largest fires in 30 years. The Fayette County business, which has been in Lexington since 1946, received final approval in March to move to a parcel off Ironworks Pike near Interstate 75, near the Fayette and Scott county line.
The agreement with the city would rebate certain taxes for as long as 10 years or as much as$1 million, whichever comes first. The agreement includes a rebate of the city’s 2.25 percent occupational tax on employee salaries. Other rebates include taxes on some net profits.
Kevin Atkins, the city’s chief development officer, said the tax rebates do not include school taxes. Stockyard officials have said the move to its new location will add 50 full-time and part-time jobs. In addition to the city tax breaks, the state has agreed to give the stockyards as much as $540,000 in state incentives.
The council on Tuesday also passed a resolution to allow the stockyards to hook into a sewer treatment facility at the Kentucky Horse Park. The stockyards will pay to tap into the sewer treatment system. There will be no cost to the city, Atkins said.
Stockyard officials have told the city they expect to break ground on the new building in late summer or early fall.
The stockyards on Lisle Industrial Avenue were destroyed Jan. 30 when a construction worker using a circular saw on a metal roof ignited a fire. More than 120 firefighters fought the blaze.