LEXINGTON — Lexington is on the road to getting a new 80 room hotel after the Community Development Agency approved redevelopment plan from Lex Lodging.
City Manager Joe Pepplitsch said Lex Lodging has proposed building a new hotel on the property between Goodwill and the Econo Lodge. The four story building would feature 80 rooms, he said. One CDA member noted this space would be larger than the existing Holiday Inn, which has 70 rooms.
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.
Mayor John Fagot, a member of the CDA, said a project like this will help the community’s lodging and sales tax. Fagot said developers will only build in locations which offer TIF assistance. “They will build elsewhere,” he said if a community doesn’t offer it. He added Cozad has been lobbying hard to get a new motel.
The CDA will utilize this to help with the payment of the project. 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.
Pepplitch said traffic flow in the area will remain consistent, the entrance to Goodwill from Plum Creek Parkway will be utilized to access the site.
The CDA members approved the plan and the development agreement. From here it will be presented to the Planning Commission and if approved there, a public hearing before the city council will be held.
The CDA also approved an amendment to the Row Development project. Pepplitsch said the original agreement from Stonyhill Ventures envisioned three phases for the development of 20 unit affordable housing projects and 12 market rate homes.
Stonyhill now wants to combine the last two phases of the project into one single phase, so all 12 market rate units will be built in 2019, Pepplitsch said.