LEXINGTON — Two new speculative homes will be coming to Patriot Dr. after Lexington’s Community Development Agency approved a resolution to borrow funds to get the units built.
The CDA met on Monday, July 20, the first time since January 20, to discuss the construction of two new speculative homes and approving a resolution to acquire the funds to do so.
City Manager Joe Pepplitsch presented the housing plans to the CDA.
The speculative homes would be built on lots on Patriot Dr., north of 20th St. Pepplitsch said interest for homes in the area has been growing and City of Lexington staff worked with Mead Lumber to draw up floor plans for the two homes.
Pepplitsch said the building of additional homes will help to fill in the area around Patriot Dr.
One house, to be located at 2503 Patriot Dr., will be a four bedroom unit with a three car garage and partial basement with the rest being crawl space. According to the floor plan, the square footage of the main floor would be 1,673, the garage, 820 and the basement, 768.
The other house, directly south of the four bedroom home, to be located at 2601 Patriot Dr., will be slightly smaller with three bedrooms, two car garage, a deck and a great room area, Pepplitsch said. There would be two bedrooms in the basement, a family room, mechanical room and crawl space.
Pepplitsch said the homes are similar to the other speculative homes which were built in 2018, just with smaller basements.
The pricing for the houses would be in the $300,000 range, Pepplitsch said. He added there already have been people interested even before any dirt was moved.
“We want to get to the point where we can borrow the funds,” Pepplitsch told the CDA members, “we want to get the foundations in before the snow flies.”
The city has refined their process since the 2018 and expects this project to go more smoothly, said Pepplitsch.
Of both units, Pepplitsch said, “they meet the need,” for the demand in housing in Lexington.
The CDA then considered a resolution to authorize borrowing from the project.
According to the resolution, the maximum borrowed funds from Homestead Bank would be $480,000.00 on a term of one year. Upon learning the interest rate for the loan was .99 percent, CDA member Seth McFarland simply said, “Build it.”
CDA member Steve Smith asked Pepplitsch about the sales of the 2018 built homes. Pepplitsch said the city was, “just in the black,” after the homes were sold. Smith noted the city didn’t build the homes to make money, but to provide more housing units in the community.
“The timing is better this time around,” Pepplitsch said of the new project.
The CDA approved the resolution.
The last item of business was a second amendment to The Row Redevelopment Project.
On Aug. 10, 2017, the CDA, The Row and Stonyhill Ventures, LLC, entered into a redevelopment agreement.
The original agreement envisioned implementation of The Row Redevelopment Project, in the southwest area of the city, in three phases, including the development of 20 units in the first phase and 12 additional units between phase two and three.
The first amendment to the project was made on June 17, 2019, as Stonyhill sought to consolidate phases two and three into a single phase.
However, according to the new development agreement, delays in construction have made Stonyhill desire to go back to a phase two and three implementation.
The second amendment now will see eight market rate homes built in phase two, with an effective date of 2020. The third phase will see four market homes built by 2021.
The CDA approved the second amendment to the project.
During the roundtable discussion, Pepplitsch said discussion at the next meeting in August will include modular and speculative housing, as well as changes to the city’s approach as new opportunities have arisen. “We’re in a better place than we were before,” said Pepplitsch.
Pepplitsch said places where housing units could be located include the Northwest 5th Addition, Independence St., S. 20th and the recently acquired O’Donnell property, in the northeast area of the community. The St. Ann’s Second Addition will also see more housing units built there.
“There’s such a need for housing across all areas,” Pepplitsch told the CDA.