Will Lexington bank building be the new city hall? City in final negotiations
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- Lexington selects 200 W. Vine St. bank building for potential new city hall site.
- City eyes public-private partnership and up to $40 million in reserve funding.
- Current government center faces $55 million in deferred maintenance costs.
After decades of searching and multiple dead ends, Lexington is finalizing negotiations for a new city government center in downtown, city officials said Tuesday.
The city released a request for proposals for a new government center in late 2024. In April 2025, the city selected the Lexington Opportunity Fund, which owns 200 W. Vine St., the former BB&T and now Truist bank building, from three proposals.
The building, one of the few downtown buildings with gold reflective windows, could be torn down or renovated for a new city government center, according to the proposal.
The Lexington Opportunity Fund is overseen by the Webb and Greer companies, which built City Center, a long-delayed downtown development that includes hotels, an office building and multiple restaurants.
The city is in the late stages of negotiations with the owners, Commissioner of General Services Chris Ford told the Lexington-Fayette Urban County Council during a Tuesday council work session.
The proposal is to use a public-private partnership, or P3. The city and council have socked away up to $40 million in a capital reserve fund that could be used for a new government center. Ford said the city could also sell its main building on Main Street to generate more money to put toward a new city hall.
Ford did not say how much per year a new city government building would cost. That’s part of the ongoing negotiations. Many private-public partnerships for government buildings have per year costs and also include maintenance and operation fees.
The goal is to break ground or start the project in 2026, Ford said.
“We are making significant progress,” he said of negotiations. “We are hoping sooner rather than later,” Ford said when asked when a final agreement, with costs, will be made public and voted on by the council.
A temporary home for 40 years
Fayette County Property Value Administration records show the bank building has more than 91,000 square feet. It was built in 1972. It also has a parking garage, which was rebuilt in 2021 after part of the garage collapsed. That garage has more than 200 parking spots.
A parking garage makes the site more convenient for the public, Ford said.
The city’s main government building is the former Lafayette Hotel, at 200 E. Main St. That building was finished in 1920 and houses many of the city’s offices. The city has been there since 1984. It also uses other downtown buildings, including an adjoining building and the Phoenix building on Vine Street. It would keep the Phoenix building if it moved to the Vine Street location.
“This was always intended to be a temporary location,” Ford said.
The city has tried multiple times to move and combine its operations. It has spent millions in maintenance and upkeep on the 1920 hotel building in the past several years.
It’s also spent a lot of money trying to find a new, more suitable home.
Since 2016, the city has spent more than $475,000 on studies to cement the need for a new government building.
The former hotel building currently has $55 million in deferred maintenance costs, Ford said Tuesday. It is cumbersome for those with mobility issues to access. There are few public meeting rooms besides the council chamber, which only has 90 seats and is located on the second floor. People often have to view council meetings on televisions from outside the chambers due to lack of seating, he said.
“The council chamber no longer has the seating capacity we need,” Ford said.
In the new building, the city hopes to have the council chamber and other meeting rooms on the first floor, he said. The city also wants the new building to be open and accommodating to everyone.
Multiple efforts to move
Past efforts to find a new city government center have been fraught with problems.
In 2018, the city got close when it nearly signed a lease agreement with a developer for the former Lexington-Herald-Leader building on Midland Avenue, but that plan ultimately fell apart. Fayette County Public Schools eventually purchased the building and combined many of its technology schools to one location. The $65 million Hill opened in June.
Councilman James Brown said Tuesday the city has not moved forward on various proposals for multiple reasons. But the current city government center is obsolete. It does not work for the public or employees.
“This was never intended to be an office building,” Brown said.
