Lexington hopes Opportunity Zones will attract development to 5 areas

LEXINGTON, Ky. (LEX NEWS) — Lexington leaders are hoping a state tax incentive program will encourage new investment in five areas of the city, turning vacant and underdeveloped properties into places for people to live, work and do business.

The five areas have been designated as "Opportunity Zones," part of a state program administered through the Internal Revenue Service that offers tax benefits tied to capital gains for qualifying investors.

In Lexington, the designated areas include Midland, downtown, the Red Mile, Cardinal Valley and Hamburg East, near the interstate.

The areas were selected based on federal income guidelines and their potential for redevelopment. City leaders say they hope the designations will help address Lexington's growing need for housing while creating new economic opportunities.

"We hope to see housing in all these areas, and we've all talked about the need for more housing in Lexington. So that was a focus of what we did," city leaders said.

Potential projects could include single-family homes, apartments, affordable and workforce housing, commercial space, entertainment developments and new businesses.

City of Lexington

The Red Mile area, for example, could become an entertainment district, bringing additional jobs to the city. Cardinal Valley could see more affordable and workforce housing.

City leaders say the Opportunity Zone designation is another tool to help make projects financially feasible and fill gaps that might otherwise prevent development.

"It's another way that we can work to help make these projects and fill kind of the gaps that are there in making the projects a reality," city leaders said.

The Red Mile and Midland areas are already positioned for development, according to city leaders, while Cardinal Valley will require additional planning.

The exact projects and number of jobs created will depend on the investors and developers who choose to pursue opportunities in the designated areas.

Developers interested in investing in Lexington's Opportunity Zones can contact the city's office to discuss potential projects.

The city is also updating its website with maps and an address lookup tool to help residents and developers determine whether a property falls within an Opportunity Zone.

The Opportunity Zones are scheduled to officially take effect Jan. 1.

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