Will the loss of Zim’s hurt the former Fayette County courthouse’s bottom line?
Officials with a board that oversees the former Fayette County courthouse say the loss of a key tenant will not dramatically affect the group’s finances, thanks in part to healthy cash reserves.
Owners of Zim’s Cafe and The Thirsty Fox announced Dec. 16 they will be closing permanently at the end of business Dec. 31 after seven years.
The restaurant and bar from James Beard semifinalist restaurateurs Ouita Michel and her husband, Chris, were the original anchor tenants to the restored building, which opened with much fanfare in 2018.
The city of Lexington spent about $32 million, about $22 million in city money, to restore the courthouse, located at 215 W. Main St., built in the late 1890s. Because the building was fixed using historic tax credits, which governments cannot receive, a private board, Historic Courthouse LLLP, a limited liability limited partnership, was created so the city could leverage the historic tax credits.
The former courthouse receives no annual allocation from the city for its day-to-day operations.
Sally Hamilton, the city’s chief administrative officer and member of the board of Historic Courthouse LLLP, said the group has enough reserves to go without a tenant for several months.
“We have been very, very careful,” Hamilton said. “We have run surpluses every year.”
That means the group can take its time to make sure it can get the right tenant who can succeed in the Main Street space, which is in the heart of one of downtown’s busiest restaurant and bar districts.
Wes Holbrook, the city’s director of revenue who also helps with Historic Courthouse LLLP’s finances, said Zim’s and Thirsty Fox’s rent and a payment for maintenance of common areas spaces, such as bathrooms and the building’s lobby, was a combined $9,000 a month. The rent accounted for $6,000.
Historic Courthouse LLLP is already running a surplus for the year, however, he said. It also has roughly $800,000 in cash reserves, which the group has set aside to make sure the historic building remains well-maintained.
The board is meeting this week to discuss next steps, Hamilton said.
“We are in the financial position to take our time and think about what we really want to do with this space,” Hamilton said. “We don’t have to rush and grab something that may not fit the space or the area.”
Hamilton praised Michel for agreeing to move into the renovated building in 2018.
“We are in deep gratitude to her,” Hamilton said. “She brought her reputation and gave this space credibility.”
The other tenants in the building include VisitLEX, the Breeders’ Cup and Limestone Hall event space on the top floor, which is operated by Bayou Bluegrass Catering
This is not the first time a tenant has left. Bayou Bluegrass Catering took over the event space several years ago from a prior tenant. It only took two months to secure Bayou Bluegrass, Holbrook said.
This story was originally published December 17, 2025 at 10:55 AM.
