Overview

Assisting local and out-of-town
developers with planning and
implementation of development and redevelopment projects in urban Lexington is a primary focus of the Lexington Downtown Development Authority (LDDA). The LDDA accomplishes this objective by serving developers in the following areas:

Projects

By promoting and publicizing both existing and potential projects and by serving as an intermediary between developers and Lexington-Fayette Urban County Government agencies, the LDDA strives to help developers streamline the planning process.

Requests For Proposals (RFPs)

LDDA actively seeks development, redevelopment and infill projects; formulates Requests for Proposals (RFPs); and provides public notice of current RFPs.

Tax Increment Financing District

The Lexington Center Corporation and the Lexington Downtown Development Authority are requesting proposals to study a possible Tax Increment Financing District for downtown Lexington.

Download RFP (PDF)

Tue, Oct. 23, 2007
L exington Herald-Leader
By Michelle Ku

City planning for new arena

"City leaders are looking to build a new arena using money raised through a tax increment financing (TIF) district, which can be used by cities to redevelop depressed areas. The type of TIF the city is seeking requires a minimum public capital investment of $200 million."

"The Lexington Center Corp. and the Downtown Development Authority next week will issue a "request for proposal" for a consultant to identify the best boundaries for the district and to complete an economic analysis for the district." Read complete article

Programs & Opportunities

LDDA advises developers regarding potential funding, grant, and incentive opportunities.

Renaissance Kentucky

The Lexington Downtown Development Authority submitted an application for Renaissance Kentucky Designation in July 2002. Community incentives for Renaissance Kentucky Designation include the following:

1.		Renaissance representative resource development
2.		Main Street City designation
3.		Eligibility for priority funding through low income tax credits and T21 Transportation Enhancement Program and other state resources
4.		Direct allocation of state funds (depending on availability) and competitive state funding (depending on availability)

Tax Increment Financing (TIF)

The Kentucky General Assembly has clarified legislation outlining three (3) distinct Tax Increment Financing Programs (TIF) that include the following:

1.		Local Revenue Only Development Areas These areas are for development projects not utilizing state revenues and requiring no review or authorization from the state.
2.		Infrastructure Development Areas Infrastructure development includes acquisition of real estate within a development area and the construction or improvements within the area. Applications for approval of development areas are submitted to the Cabinet for Economic Development. The Cabinet determines whether the development area application should be assigned to Kentucky Economic Development Finance Authority (KEDFA) or the Tourism Development Finance Authority (TDFA) for further consideration and approval.
3.		Project Specific Development Areas Project specific areas are defined as property, assets, or improvements for public purpose and include development of facilities for residential, commercial, industrial, recreational, open space, or any combination that contributes to economic development.  Applications for approval of development areas are submitted to the Cabinet for Economic Development. The Cabinet determines whether the development area application should be assigned to Kentucky Economic Development Finance Authority (KEDFA) or the Tourism Development Finance Authority (TDFA) for further consideration and approval.

Tourism Development

The Kentucky Tourism Development Act provides a state sales tax incentive program for tourism development projects.  According to the Kentucky Tourism Cabinet, “the incentive for developers of approved new or expansion tourism projects is the ability to recover 25% of the cost of the project.  On an annual basis, the Kentucky Revenue Cabinet will return to developers of approved projects the state sales tax paid by visitors to the attraction on admission tickets, food and gift sales and lodging costs.  Developer has ten years to reach the 25% threshold.  An expanding attraction receives the incentive on increased sales tax due to the expansion.”

Lexington Downtown Housing Fund

The Lexington Downtown Housing Fund is a public/private investment partnership administered through a private, for-profit, limited liability corporation with the purpose of creating housing in downtown Lexington. The Kentucky League of Cities is providing $2 million toward the program and channeling these funds through Lexington-Fayette Urban County Government. The Lexington Downtown Development Authority (LDDA) is securing matching funds from nine area banks including the following:

• BB&T
• Bank of the Bluegrass
• Chase
• Central Bank
• Community Trust Bank
• Fifth Third Bank
• National City Bank
• Republic Bank
• US Bank

Creation of this housing fund affords the lending community a relatively low-risk opportunity to invest in the downtown housing market, provides real-time comparables, and reduces upfront capital and risk for developers.

A Lexington Downtown Housing Fund committee comprised of representatives from member banks and the LDDA administers the $4 million in loans. The committee reviews loan applications and makes recommendations regarding merits of each application based on guidelines developed by the committee. The Lexington Downtown Housing Fund lends up to 10% of total debt for approved projects with the loan secured in a secondary position to that of the primary lender. Developers are required to provide 10% of total project cost with remaining 80% financed through private lending institutions. Maximum term of each loan is l0 years with a balloon payment at the end, but average loan terms range from 5 to 7 years.

Developers should contact the Lexington Downtown Development Authority (859.425.2296) for additional information, copy of loan guidelines, and application

In an effort to increase homeownership opportunities among Lexington’s workforce, the Lexington-Fayette Urban County Government (LFUCG), University of Kentucky (UK), and Samaritan Hospital have announced the city’s first Employer-Assisted Housing (EAH) benefit plan for employees. This program is a joint venture between the Lexington Downtown Development Authority (LDDA), Fannie Mae, Lexington-Fayette Urban County Government, University of Kentucky, and Samaritan Hospital. Through the initiative called “Live Where You Work,” the employers will provide eligible employees with a forgivable loan of up to $15,000, housing information and education, and innovative financing options.  The initiative promotes urban revitalization by targeting homes in downtown Lexington and the UK area.

For more information contact the following:

University of Kentucky employees

Lexington-Fayette Urban County Government employees

Samaritan Hospital employees
Phone: 859.226.7001

Real Estate

LDDA promotes and advertises downtown real estate spaces (both residential and commercial) and works directly with urban real estate agents.

CURRENT LISTINGS