Lexington to spend $2.29 million to build, design its newest industrial park
The city of Lexington will pay two firms $2.29 million to help build initial infrastructure, oversee design and market a new 200-acre, city-owned industrial park off of Georgetown Road.
The Lexington-Fayette Urban County Council gave initial approval during a Tuesday council work session for the contract with Gresham Smith, an Atlanta-based design and planning firm, for $2.29 million for two years. Cushman & Wakefield, an international real estate brokerage group, will be paid 6% for the sale of parcels in the industrial park.
A final vote on the contract will happen in the coming weeks.
Gresham Smith and Cushman & Wakefield were selected after a competitive bid process.
The city council set aside $9.5 million from $121 million in American Rescue Plan Act money to build out the 200-acre campus the city acquired through a land swap with the University of Kentucky. UK gave the city the land and an additional 50-acre parcel connected to Coldstream Research Park in exchange for several roads around the university’s campus. The deal was first announced in 2018.
The city got the title to the 200-acre property from UK in July.
A prior study showed the city will need to invest at least $17.3 million to have the 200 acres ready for new businesses. Craig Bencz, a senior administrator with the city, said that number, due to increased costs, has now climbed to $23 million.
Bencz said the city will look for additional funding to make up for the gap.
Slow sales on 50 acres
In 2019, the city assumed control of the 50 acres that was once part of Coldstream Research Park. Under the deal, the city and UK would split the proceeds from the sale of the 50 acres. But three years later, only three parcels have sold. One of the first was A & W, which moved from another location in Coldstream.
Meanwhile developers and those in real estate have repeatedly argued the city must open its growth boundary due to lack of land for housing and new businesses.
Kevin Atkins, chief development officer for the city, said he hoped the contract with Cushman & Wakefield will help spur more interest in the 50-acre parcel.
Cushman & Wakefield will help market the property, Atkins said. It will also receive 6% of the sales of those 50 acres, he said.
“They know what doors are open and have access to information that we don’t,” Atkins said.
The city needs those parcels in the 50 acres to sell so it can generate more money to help offset costs on the 200 acres.
There are constraints on those 50 acres that will not apply to the 200-acre parcel, he said.
Businesses must comply with design standards for UK Coldstream Research Park. Those design standards include setbacks — how far back a building must be from property lines — which can be prohibitive for some uses, Atkins said.
The 50 acres is also zoned professional business, which means industrial uses aren’t allowed. That has caused some issues, Atkins said.
The new 200-acre business park, on Georgetown Road and Interstate 64 and Interstate 75, is zoned industrial, a zone that is much more broad, Atkins said.
