Developer sought for High Street parking lot near Rupp Arena in downtown Lexington

Beth Musgrave
·2 min read

For the second time in five years, a developer is being sought for the 17-acre High Street parking lot across from Rupp Arena in downtown Lexington.

The Lexington Center Corporation, which oversees Central Bank Center, has issued a request for proposals to developers for possible ways to develop and generate income from the large surface parking lot that is bordered by High Street, Lexington Center Drive, Poplar Alley and Maxwell Street. Any project is expected to include a parking facility, according to the Lexington Center Corp. documents.

The proposals should include a development plan, financing and leasing information, previous experience and partners, and the proposals are due by Dec. 10, according to the Lexington Center Corp. documents.

The lot is part of a tax increment financing district, which uses taxes generated from the project to pay for infrastructure. The state approved the creation of the district, which includes the recently expanded Central Bank Center and Rupp Arena and LexGo Live, in 2019.

The Lexington Center asked for up to $90 million in state tax incentives but was approved for less than half that —$41 million over 30 years. To get any taxes back, Lexington Center must spend at least $200 million. The state can give up to 80 percent of the new taxes generated from the project. Instead, it only pledged 40 percent of those taxes for the Lexington Center, according to state documents.

State officials have curbed the amount of tax dollars the state is willing to give for tax increment financing districts. Lexington is no longer approving the creation of new tax increment districts. There are currently eight approved districts in Fayette County.

Lexington Center Corporation is looking into developing the nearly 20-acre High Street parking lot across from Rupp Arena and the convention center in downtown Lexington.
Lexington Center Corporation is looking into developing the nearly 20-acre High Street parking lot across from Rupp Arena and the convention center in downtown Lexington.

The development of the High Street parking lot has long been part of the overall redevelopment of the Central Bank Center and Rupp Arena plan, originally conceived in 2012.

In 2016, before construction began on the renovation of the Central Bank Center, Lexington Center issued a request for proposals. It received five, including a plan to turn the parking lot into a hotel and new baseball stadium. The group ultimately paused its hunt for a developer in 2017 as it waited for approval of the tax increment financing district. Lexington Center was also trying to push forward with its plans to renovate the convention center and Rupp Arena, which was delayed several times.

When the pandemic started in March 2020, Central Bank Center was hit with a wave of cancellations, drying up its cash flow. It refinanced its debt for the renovation and expansion in 2020.

The fully expanded convention center is expected to open in early 2022.