Lexington council green lights millions in incentives for Keeneland, soccer stadium

Beth Musgrave
·2 min read

Two Lexington sporting venues will each receive millions of dollars in local tax money.

The Lexington-Fayette Urban County Council voted unanimously Thursday to approve a local incentive packages for Lexington Sporting Club and Keeneland.

The Lexington Sporting Club, which is building a stadium and youth sports fields, will receive $1 million for infrastructure costs connected to building a more than 5,000-seat stadium near the Athens Boonesboro Road and Interstate 75 interchange.

In addition, the city has agreed to issue up to $50 million in bonds for the project. Under that agreement, Lexington Sporting Club will be responsible for repaying the bonds. As part of the agreement, the city will take control of the property and Lexington Sporting Club will not have to pay city property taxes. Lexington Sporting Club will have to come to agreements for property taxes from other taxing districts, including Fayette County Public Schools.

The bonds will have to be approved by the council at a later date.

Lexington Sporting Club’s new stadium on Athens Boonesboro Road will initially seat more than 5,000 fans with the ability to ultimately expand to as many as 11,000.
Lexington Sporting Club’s new stadium on Athens Boonesboro Road will initially seat more than 5,000 fans with the ability to ultimately expand to as many as 11,000.

The city has also agreed to rebate 1% of a 2.5% local tax on wages for the Lexington Sporting Club for jobs created at the site. It’s not clear how much money in rebates Lexington Sporting Club will receive.

Keeneland, which recently announced a $93 million expansion, will also receive a $1 million forgivable loan from a fund earmarked for infill and redevelopment projects. The $3 million fund was originally set up to help developers with tricky and often costly infill projects. The Lexington Sporting Club loan is from the same fund.

Both Keeneland and the Lexington Sporting Club are outside the city’s growth boundary.

Lexington Sporting Club previously received $1 million from a different city bank account to help build youth sports fields.

Despite Thursday’s unanimous vote, council members have previously questioned the use of the $3 million infill fund for the two projects.

Councilman James Brown has asked for a review of the infrastructure fund and recently referred the fund to a council committee for review.

David Barberie, a lawyer for the city, told the council during a Tuesday council work session that although the fund was originally designed to help pay infrastructure costs for infill projects, the criteria of the fund was later changed to include economic development projects, or projects that could create jobs. Both the Keeneland expansion and the new soccer stadium will create jobs and help drive tourism.

Lexington Mayor Linda Gorton said no developer applied for use of the funds prior to the applications by Keeneland and the Lexington professional soccer club.

“I talked to developers who said it was not enough money,” Gorton said during Tuesday’s work session.

A rendering of the paddock building entrance as it will appear after the $93 million renovation at Keeneland that will add a new dining, seating and venue area wrapping around the paddock and saddling stalls.
A rendering of the paddock building entrance as it will appear after the $93 million renovation at Keeneland that will add a new dining, seating and venue area wrapping around the paddock and saddling stalls.