After decades of trying, Lexington is one step closer to a new city hall
Lexington is one step closer to a long-awaited new city hall.
The city government will enter exclusive negotiations with the Lexington Opportunity Fund to establish a new local government center, better known as a city hall, according to spokesperson Susan Straub. The location proposed is at Vine and Upper streets, in what used to be the BB&T Bank building.
That building could be renovated or torn down to construct a new one.
Lexington has been trying to get a new city government center for decades, and has spent more than $450,000 on studies to cement the need for a new city hall. Current Mayor Linda Gorton is the fifth mayor to pursue construction of a building.
For now, the main government building is in what used to be Lafayette Hotel, at 200 E. Main St. That building was finished in 1920, and became home to the local government in the 1980s. It was meant to be only a temporary location.
It was never meant to be an office building, Gorton said, and it’s time to return the building to its original use.
“At a time when we need more housing in our community, it needs to be returned to its first and best use as a hotel or apartments,” she said.
Councilmember James Brown said city hall needs more parking and better accessibility so it’s easier for Lexingtonians to come to public meetings.
“The overall conditions of the building haven’t really been that conducive to a public building. If we have the opportunity to create a better space, to better engage with the people that we represent, I think we should take that opportunity,” he said.
“We have been intentional about saving and saving resources to help us make that transition.”
The building has needed extensive renovation over the years, including fixing water damage and broken limestone on the buildings exterior, and will need more in the future — one study estimated $22 million. Ultimately the cost of moving to a new building will be cheaper than upkeep for the current, according to a study by Ernest & Young.
“We think ours is the best site that is available and that such a new facility at this prime location with available parking will not only better meet the wants and needs of the public, but also best serve the city as a long-term investment in its future,” said Dudley Webb, co-owner of the Lexington Opportunity Fund.
The Lexington Opportunity Fund is a joint partnership between Greer Companies and The Webb Companies, two local real estate firms.
The company proposed the former BB&T Bank Building for city hall in 2023, but the city did not move forward with negotiations, instead picking a different proposal that ultimately fell through.
Brown said previous attempts to secure a new government center will help council make a better informed decision.
Still, Lexington is several steps away from securing the new city hall, and few specifics are available yet.
Negotiations with the Lexington Opportunity Fund could take months. If a deal is not reached, the city could choose another company or close the bid and go back to square one.
When an agreement is made, the city council must approve the contract. Then, construction or renovations can start.
The council set aside $43 million to fund a new government center years ago, but that money can be used for other things if the city decides not to move forward with a new building.
Councilmember Tyler Morton, who represents the north side of downtown and some neighborhoods north of New Circle Road, said the government has to be strategic with funding allocation.
“Our local government has a responsibility to be fiscally sound while also investing in people, especially as looming federal budget cuts threaten the services and assistance many of our constituents rely on,” he said.
“At the same time, I recognize that we are spending significant funds each year on repairs to the existing city hall building. That too, raises valid questions about long-term fiscal responsibility and infrastructure priorities.”
Lexington Opportunity Fund owns the former BB&T Building and a parking garage at West High and South Mill streets. It also developed the $240 million mixed-use City Center in downtown Lexington, which took more than a decade to complete.
This story was originally published April 17, 2025 at 3:25 PM.