Essential news and analysis from Kentucky’s state and local governments on housing, planning, and economic development.
City County Connector
Yesterday in Lexington, the Urban County Council adopted a pair of ordinances that will require installation of carbon monoxide detectors in all Lexington residences that are at an elevated risk for carbon monoxide poisoning: homes with gas fuel heat or appliances, and homes with attached garages. Set to take effect in six months, the City hopes to use the time until the ordinances are effective to educate the public on the dangers of carbon monoxide in residences and encourage voluntary compliance.
Lexington’s Council also adopted an ordinance incorporating a maintenance manual for post-construction stormwater controls as an engineering manual for infrastructure in Fayette County. This creates an additional manual that provides “the standards for design, review, construction and inspection of infrastructure in Lexington-Fayette County.”
At a sometimes contentious meeting of the LFUCG General Government & Planning Committee, Councilmembers received a draft of Article 31, an ordinance that will govern Solar Energy Systems in Fayette County. Considerable difference of opinion about the ordinance was evident, with friction primarily emerging over the proposed regulation of large-scale solar developments in the Agricultural Zone. The proposed ordinance passed out of committee on a 6-4 vote, and one would expect competing opinion and input as the matter now passes through environmental and planning review.
Finally, from Lexington, the long and winding road for Edelen Renewables to gain approval of its lease of 357 acres at Fayette County’s former Haley Pike Landfill for the installation of a large-scale solar farm will extend an additional two weeks. Concerns voiced by the Lexington Model Airplane Club, which currently leases the space identified for Edelen’s project, at the Council’s March 12 meeting pushed back final approval of the solar project back, tightening the timeline for the already delayed development.
The City of Richmond recently celebrated the Richmond Industrial Development Corp.’s receipt of a Kentucky Product Development Initiative (“KPDI”) in the amount of $249,019. The city plans to match the KPDI investment with local funds to design and build a new entrance to its 190-acre industrial park on Duncannon Lane. It is the third such KPDI investment that Richmond has received from Kentucky’s Cabinet for Economic Development.
Sadieville in Scott County is researching how other cities and towns deal with blighted and dilapidated properties as it considers enacting a maintenance and preservation ordinance to combat eyesores in the downtown corridor. Absentee owners are proving difficult to locate and work with to begin restoring the small-town charm to the rural community. The city is also seeking guidance from the Kentucky Heritage Council’s Main Street Program on a long-term solution that is likely years away from completion.
In Somerset, the Pulaski County Fiscal Court welcomed news that Pulaski County Clerk Tim Price will be returning $522,270.44 in excess fees to the County’s coffers, while Sheriff Bobby Jones’ office will be returning $222,376.83 in unspent funds.
Rotunda Roundup
At the state Capitol in Frankfort, Senate Bill 9, which would allow local municipalities to establish Residential Infrastructure Development Districts and/or Housing Development Districts, has received its first reading in the House chamber, as it continues a slow march towards passage by the Kentucky Legislature. The measure was returned to the House Local Government Committee for hearings and analysis.
What has been colloquially deemed the “Rocket Mortgage” bill, Senate Bill 157, which would exempt from loan fee limits the purchase of points to lower the interest rate for the life of the loan for a purchase money mortgage, passed the Senate Chamber unanimously and has now been assigned to the House Banking & Insurance Committee. The measure would make it easier for loan originators to get home purchasers into loans with lower interest rates that would otherwise run afoul of the KRS 286.8-125 prohibition against loan fees in excess of the greater of $2,000 or four percent (4%) of the total loan amount.
Just before the deadline for the introduction of new bills in the House, Majority Floor Leader Steven Rudy filed House Bill 911, which would prohibit planning (and zoning) units from regulating certain commercial uses and would make municipalities subject to their own planning and zoning provisions, eliminating the exemption from compliance for local government property. The measure specifically prevents local planning authorities from enacting or enforcing provisions limiting fuel and service stations, car sale or repair lots, mandating tree canopy and open space provisions in certain commercial zones, among other provisions. The bill has already received its first reading in the House Chamber.
While more than 1,200 total other House and Senate bills await their fate, with only 13 working days left in the 2026 Regular Session Calendar, the various revenue and appropriation measures that will ultimately become the Commonwealth’s budget will likely dominate much of the rest of the Assembly. Of particular note, Representative Jason Petrie’s revenue measure, House Bill 757, would sunset the Commonwealth’s Tax Increment Financing (“TIF”) programs, eliminating what has been a powerful, yet sometimes controversial, economic development tool for local governments. The measure has already passed out of the House and has been assigned to the Senate Appropriations and Revenue Committee.
Governor Andy Beshear announced a series additional KPDI investments in a dozen projects spread across 12 counties, including the aforementioned Richmond project. These investments realize the collaboration between the Cabinet for Economic Development and the Kentucky Association for Economic Development (KAED), which provides state support for upgrades to sites and buildings across all industry sectors of the Commonwealth’s economy. Terri Bradshaw, president and CEO of KAED, commented, “Strong communities are the foundation of Kentucky’s economic future. KAED is proud to partner with communities across the commonwealth, through KPDI, to support their development goals and empower their vision for growth.”
Last week, the Kentucky Secretary of State Michael Adams observed that most new voters are registering as Independents, rejecting the choice of affiliating with the Democratic or Republican parties. While registered Kentucky Republicans number 1.6 million voters and Kentucky Democrats count 1.34 million registrants, of those newly registering in February, nearly two-thirds registered under other political affiliations, mostly Independents.
According to Plan
In that same March 10 LFUCG GG&P Committee meeting heard a presentation from Commissioner Keith Horn highlighting the impact of House Bill 443 on the efficiency of the development process in Lexington. While the Commissioner was quick to point out the brevity of the “approval” process, the process for a developer to attain “certification” for their development application remains measured in hundreds of days. Councilmembers heard highlights of a presentation from Alicia LarMour, the Council Research Analyst, on recommendations for improving the development process, focusing specifically on the recommendation to establish a Development Liaison position at City Hall. It appears the working group has more convincing to do before securing the GG&P committee endorsement of the budget request for such a position.
The Danville-Boyle County Planning & Zoning Commission decided to pause a proposed zoning text amendment that would increase the minimum lot size in the agricultural zone from one acre to five acres. The proposal met resistance from stakeholders after being forward to the Boyle Fiscal Court, and had been returned to the planning body for further study and discussion. The matter remains on hold at the Planning & Zoning Commission after receiving input from agricultural interests, emergency services providers, and surveyors, among others.
The Harrodsburg-Mercer County Joint Planning & Zoning Commission announced that it will hold an official public hearing in May on a proposed data center to be located in rural Mercer County. A data center zoning ordinance is slated to be completed in April, and expected to be available for public review two weeks before the May hearing, the date for which is to be determined. This comes on the heels of a town hall where approximately 40 citizens spoke on the data center issue before a packed hall of almost 400 people. While the Harrodsburg-Mercer County Industrial Development Authority has not taken a public stance in favor or against the data center, Executive Director Greyson Evers has taken a lead role in trying to help separate fact from fiction for the public, distributing an informational pamphlet that addresses many citizens’ frequently asked questions.
Developing Situations
Governor Andy Beshear announced that Kentucky was nationally recognized again as a top choice for economic development projects. Site Selection magazine revealed its 2025 Governor’s Cup rankings, listing Kentucky as a Top 5 state for economic development projects per capita. Both the Louisville and Northern Kentucky/Cincinnati metros ranted in the top ten for per capita economic development projects last year. The greater Lexington and Bowling Green areas also secured top five rankings for economic development projects for cities of their respective sizes. Thirteen additional Kentucky cities placed highly in the rankings of top economic development projects for micropolitan areas. The aforementioned KPDI program, in part, has been a consistent driver of the recent surge of economic development projects in Kentucky, and should continue to attract top talent and firms as the program expands.
Thought Bubbles
“That Section 16-1(c)(19) of the Code of Ordinances of the Lexington-Fayette Urban County Government be and hereby is amended to read as follows:
(19) Engineering manuals. That set of documents used to provide the standards for the design, review, construction and inspection of infrastructure in Lexington-Fayette County. These are also known as the engineering manuals or as the manuals. The engineering manuals consist of the procedures manual for infrastructure development (also known as the procedures manual), the construction inspection manual (also known as the inspection manual), geotechnical manual, the Rd.way manual, structures manual, stormwater manual, the sanitary sewer and pumping station manual (also known as the sewer manual), and a maintenance manual for post-construction stormwater controls that outlines minimum maintenance requirements. These manuals, including the definitions therein, are hereby adopted and incorporated into this Code by reference. From time to time, the Urban County Government May revise, modify, or amend the manuals in conformance with the procedures established in the procedures manual.”
LFUCG Ordinance 0184-26, Adopted March 12, 2026.
Ask almost any professional in real estate development around Lexington and they will readily confess that the escalating war over development in Lexington between the powers of growth and preservation has intensified in conduct and expanded in theatre in recent years. Battles over individual projects and parcels continue to play out at the Planning Commission, and, to a lesser extent, the Urban County Council level, creating sensational headlines and drawing significant public scrutiny. Fights over massive apartment complex developments designed to house University of Kentucky students in the older neighborhoods adjacent to campus are ubiquitous both in the pages of the local newspapers and LFUCG meeting dockets. The tension between preserving neighborhood character and increased density through infill and redevelopment ensure that the planning and zoning attorneys will be busy for years to come.
A much more serious campaign to control growth policies at a macroeconomic level is occurring simultaneously between a decidedly pro-growth Kentucky Legislature and the preservation-minded administration currently occupying Lexington’s City Hall. For example, House Bill 443 attempted to streamline the development and subdivision process at the local level by requiring planning bodies provide ministerial approval of conforming development plans via state legislative fiat. Lexington local government countered by enacting and amending the Urban Growth Master Plan and the Preservation and Growth Management Plan to tighten its grip on the county’s vacant land and significantly increase both the time and cost of compliance to achieve certification of a development plan, usually by forcing applicants to seek a serious of waivers from compliance of various local mandates.
While the General Assembly is considering additional express lanes for both residential and commercial development, Lexington’s Planning & Zoning staff have signaled their intention to unveil a new weapon to deter and slow future development: the engineering manuals, sometimes colloquially referred to as the technical manuals.
As mentioned above, on Thursday, the Urban County Council approved inclusion of a new stormwater maintenance manual in the collection of engineering manuals that govern technical compliance of various development and subdivision plans. What will that manual contain? Could a member of the Urban County Council explain the contents of any of the technical manuals to one of their constituents with any significant detail? I think their attempts would be dubious, at best.
At a February Planning Commission Work Session, the Planning staff expressly stated that it is much easier to update and modify the technical manuals than to successfully shepherd a Zoning Ordinance Text Amendment through the legislative process. The Planning Commission and Staff have almost unfettered power over the contents of the engineering manuals, providing an ideal vehicle through which to achieve Mayoral prerogatives on growth and development outside of public scrutiny. It isn’t clear who or on what grounds a party subject to the engineering manuals could even sustain a legal challenge to their contents in the face of a finding of noncompliance.
These engineering manuals in the hands of a bureaucracy with no desire to advance real estate development may well be the nuclear submarine of the war over future development in Lexington: hidden from sight until it’s too late to comply with any semblance of time or cost efficiency.
Hill Strategic Advisors 