LEXINGTON, Ky. — The Lexington-Fayette Urban County Council moved forward Tuesday with a ground lease for a 357-acre solar farm on the former Haley Pike Landfill, though several council members pressed for a better deal and voted to require a separate council approval of any community benefits agr eement tied to the project. The work session, held Feb. 24 at Council Chamber, also saw the council advance a rezoning on South Limestone Street that includes what members described as a first-of-its-kind community benefits agreement with direct cash investment in the historically Black Prall Town neighborhood. A University of Kentucky economist, meanwhile, warned that slowing job and wage growth will squeeze city revenues in the coming fiscal years. Solar lease draws scrutiny over price, precedent The proposed ground lease with Social Impact Solar LLC, a platform entity of Edelen Strategic Ventures LLC, would allow the company to develop, construct and operate a solar photovoltaic project on roughly 357 acres at the Haley Pike Landfill site. First-year lease revenue to the city is estimated at $30,345, according to agenda documents. Council Member Liz Sheehan said the per-acre rate of about $85 remains low, noting that two-thirds of the project footprint extends beyond the capped landfill itself. She acknowledged that solar development on brownfield sites is rare, however, and said the agreement will set a standard other communities look to when negotiating similar deals. Vice Mayor Dan Wu echoed that concern, saying the deal could be improved but that the city needs large-scale solar energy. He urged the administration to include a member of the council’s solar working group in future negotiations over a payment-in-lieu-of-taxes (PILOT) agreement and industrial revenue bonds tied to the project. Council Member Dave Sevigny said that while he wished the terms were stronger, the opportunity cost of an otherwise unusable landfill site justified moving ahead. Council Member Tyler Morton successfully moved to amend the item so that any community benefits agreement negotiated under the lease must return to the full council for a separate vote before the mayor can execute it. That amendment passed without opposition. The full new business package, including the solar lease, was then approved. Prall Town rezoning includes community investment pact A rezoning of roughly half an acre at 118 Mont Mullen Street, 121 and 123 Prall Street, and portions of South Limestone from residential to a neighborhood business zone advanced to the Feb. 26 council meeting after extended discussion about a voluntary community benefits agreement between the developer and Prall Town neighbors. A city law department official told the council that the ordinance includes a provision acknowledging the agreement and authorizing the city to withhold future permits if the developer fails to comply with its terms. Council Member Chuck Ellinger II noted the agreement includes a cash payment directed toward reinvesting in the neighborhood — a mechanism he said he had never seen in a Lexington rezoning. Council Member Morton praised the process, calling the agreement a model for how development pressures in historically Black neighborhoods can be addressed through direct investment. The developer attended community events in Prall Town and returned to the table after an earlier proposal was denied roughly a year ago, Morton said. Economist warns of tighter budgets ahead Dr. Michael Clark, director of UK’s Center for Business and Economic Research, told the council that Lexington added jobs at a 1.2 percent rate from 2024 to 2025 but that growth stalled in the final months of the year. He projected payroll tax collections of approximately $293 million in fiscal year 2026, representing 5.6 percent growth, with that rate dropping to about 3.6 percent in fiscal year 2027. Net profits tax revenue, which declined in 2025, is forecast to rebound modestly at 3.6 percent in FY26 before slowing to 1.2 percent the following year, though Clark cautioned the data is volatile and difficult to predict. Commissioner of Finance Sally Hamilton Hensley did not sugarcoat the implications. She told council members the budget picture has grown progressively tighter since the pandemic recovery boom, and that FY27 and FY28 look to continue that trend. The city will need to find efficiencies and manage expectations across departments, she said. HOAs cleared to hire snow removal contractors Council Member Hil Boone introduced a resolution allowing homeowners associations and neighborhood associations to hire private contractors for snow and ice removal on city streets, with a liability waiver releasing the government from responsibility. The measure passed and heads to the Feb. 26 meeting. Several members raised concerns the proposal does not yet address. Council Member Jennifer Reynolds asked whether contractors would be restricted in the chemicals or salt products they could use, and a city attorney acknowledged that environmental regulations on treatment materials are not currently part of the release. Council Member Sheehan pressed on the stormwater implications, and staff said those issues would be addressed in the final document. Ellinger asked whether neighborhoods that opt in would be removed from the city’s snow-clearing routes. Staff confirmed that if an association provides its own service and notifies the city, government crews would not duplicate the effort. Storm costs still being tallied Ellinger also asked about spending related to a recent winter storm. A city official said more than 3,000 tons of salt were used and that the city currently holds over 5,000 tons in reserve. Final costs are still being compiled, with the city working with emergency management on a potential reimbursement request. An RFP was issued this week to formalize contractor support for future storms, replacing the emergency contracts used during the recent event. The council recently approved an additional $800,000 budget amendment for snow operations on top of roughly $4 million already budgeted. In other business The council approved neighborhood development funds and capital project allocations, a rezoning on Clay’s Mill Road from single-family to mixed low-density residential, and routine procurements including a $66,000 captioning services contract for Lex TV broadcasts. Council Member Reynolds asked whether the captioning contract could be expanded to include language translation, noting that Louisville offers that capability; staff said the current vendor provides English-only service. The Budget, Finance and Economic Development Committee reported that city auditors issued a clean opinion on the FY25 financial review with no findings, material weaknesses or required adjustments. Council Member Reynolds also noted that a weekend apartment fire in her district led to four buildings being condemned due to utility damage, displacing a number of vulnerable residents. She thanked the multiple city divisions still working to rehouse those affected. The council’s next regular meeting is Thursday, Feb. 26, at 200 E. Main St. Items advanced Tuesday, including the solar lease, the Prall Town rezoning and the snow-removal resolution, are expected to come up for formal votes at that session. The post Lexington Council Advances 357-Acre Solar Farm on Closed Landfill, Approves Precedent-Setting Rezoning Deal appeared first on The Lexington Times. ...read more read less