City officials are reviewing plans for a boutique hotel near Lexington’s Distillery District. A 125-room hotel is proposed at the east end of the commercially active site.
Developer Nik Feldman told City Council members it would serve the distillery district and the enlarged convention center now under construction. “I think this project fulfills a public vision for the city in growing this area. I think it will also ensure that the convention center rolls out successfully. We have tried to time this development with the opening of this $300 million investment when they expect to have the largest backlog of events,” said Feldman.
The project relies on an Industrial Revenue Bond concept not used in Lexington for more than two decades. The plan includes payment in lieu of property taxes to three entities, Lextran Mass Transit, Fayette Schools, and the Lexington Library. Library Board of Trustees Chair Larry Smith told Council more dialogue is needed. “We have not had sufficient time to vet any sort of proposal by Astana and New Circle Investments, let along one that would have a negative impact on our public library’s funding for 40 years,” noted Smith.
Vice Mayor Steve Kay said it’s important for the three public entities and the developer to come to an agreement on payment before a Council vote on June tenth. Development Attorney Bill Lear said that is the intent in their talks with the three groups. The Developer estimates tax revenues, including occupational and transient room levies, to total almost $53 million over 40 years.
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