Why two Lexington nonprofits are returning $6 million in COVID relief money
The city has decided not to move forward on two projects funded with American Rescue Plan Act funding due to deadlines associated with the federal coronavirus relief money.
At a Tuesday Lexington-Fayette Urban County Council work session, the council gave initial approval to rescind a preliminary award of $2 million to the Salvation Army of Lexington for it to move to a different location.
The council also voted to rescind $4 million to the Lexington Farmers’ Market for it to build and re-locate in the Davis Park area, formerly known as Davis Bottom.
Instead, $2 million will go to the city’s affordable housing fund, $1 million will go to renovations needed at the Black and Williams Community Center on Georgetown Street, $1 million for a project that will help re-imagine Phoenix Park project and $2 million to the Community Land Trust for a new community building in Davis Park. The Community Land Trust owns the land in Davis Park.
The funding comes from $121 million in American Rescue Plan Act funding, or coronavirus relief money, the city allocated in 2022.
Those funds also have deadlines on when the funding has to be spent and projects completed.
All ARPA funds have to be spent by Dec. 31, 2026.
Maj. Andrew Miller of the Salvation Army said the city’s main homeless shelter for women and children ultimately decided it could not meet those deadlines.
The Salvation Army, on the corner of Main Street and Oliver Lewis Way, had considered buying a different property because it needs more space.
However, those plans didn’t come together in time to meet all the spending and construction requirements of the ARPA guidelines.
“There was no way we were going to meet those deadlines,” said Miller, who is serving as interim major for the Salvation Army.
Instead, the Salvation Army is going to look at expanding and or renovating its current downtown location.
“For right, now where we are in the best place for us. People know to come here for help,” Miller said. “The city has been fantastic to work with.”
Miller said the Salvation Army never received the money so it was not technically giving back money.
The Lexington Farmers’ Market had proposed moving from Tandy Park, in downtown Lexington, to a permanent location in the Davis area off of Oliver Lewis Way. The market has struggled to find enough space for all of its vendors. Parking and access issues have become tricky, said Josh England, market manager for the Farmers’ Market.
The Farmers’ Market was supposed to get matching funds, either through other grants or private fundraising, as part of the deal to build a permanent home for the market.
England said the market feels it could have met some of the deadlines if the project had been phased over time. The total project cost was more than $9 million.
“There was also some discussions with the city about what matching funds really meant,” England said.
England said in the near future the downtown Saturday market will remain in Tandy Park next to the former Fayette County courthouse. The market also has seasonal locations on Southland Drive, Maxwell and Broadway and in the Gardenside area.
“Without this critical piece of funding, we must stop the project and evaluate what the future looks like for a dedicated permanent facility,” he said.
