City Council approves 80 room hotel development plan, new campground

LEXINGTON — It was all about lodging in town at the Lexington City Council meeting on Tuesday. The council approved the redevelopment plan for an 80 room hotel and a new campground south of town.

City Manager Joe Pepplitsch said the project site is just south of Goodwill and a new 80 room, four story hotel will be built on the site. Lex Lodging is the redeveloper for the project.

The project concept shows 80 parking stalls for the building, five guest rooms and meeting spaces on the first floor and 25 rooms on the next three floors.  The new location is expected to create 15 full time jobs and 10 part-time jobs, Pepplitsch said.

Pepplitsch noted this location will not feature a banquet hall space.

According to the redevelopment plan the site will need grading, extension of water, sewer and electrical utility improvements. Construction is anticipated to begin in the first quarter of 2020 and is estimated to take 14 months to complete.

Lex Lodging applied for a tax increment financing, TIF, for the project. TIF essentially reallocates funds from property taxes to encourage development within a district.

The total cost of the project will be approximately $12,701,373. Based on this valuation Lex Lodging has requested $1,800,000 in TIF funds.

Pepplitsch told the council both the Community Development Agency and the Planning Commission approved the project and forwarded their recommendations.

Mayor John Fagot said lodging tax will be collected from this new hotel and there have been tens of millions of dollars come back to the city’s tax rolls thanks to TIF assistance to projects like this.

The city council approved the project.

Development Services Director Bill Brecks presented the Groves by Riverside LLC conditional use permit for a campground at 3016 Plum Creek Parkway.

The proposed campground is just south of the Platte River bridge. Brecks spoke to the need for campground space in town and said his office receives frequent calls about campground availability.

Brecks said the campground meets the comprehensive plan and Groves by Riverside has agreed to meet any codes stipulated. There is currently no set layout yet. Brecks said they still need to talk with the Department of Environmental Quality first. There would need to be a minimum of 10 spots on the campground, Brecks said.

Groves by Riverside member Steve Fokken appeared before the council to answer any questions. Fokken said they would add a holding tank rather than using the existing septic tank for the sewer system.

The city council approved the campground use permit.

During the roundtable discussion Pepplitsch said his office is currently working through budgeting.

He also mentioned the coming annexation of the former Lehman property, the 114 acres just north of town, which was purchased by the city back in May. Current thought is to make the area one big subdivision.

Storm clean up continues from the July 9 flooding and Pepplitsch said he would present updates as they become available.

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