Council Economic Development COW

Summary

Meeting Overview

The Economic Development Committee met on October 11, 2011, at 1:00 p.m., with Beard presiding. The committee addressed three agenda items during the session. No votes were taken during the meeting. The committee heard three public comments from members of the public.

The committee considered the Affordable Housing Trust Fund Implementation, which was deferred for further discussion at a future meeting. Two informational presentations were provided: an update on the Arena & Arts District, and a report on items referred to the committee. Overall, the meeting focused on economic development initiatives, with one item requiring additional deliberation before action could be taken.

Attendance

The following individuals were present at the meeting on October 11, 2011:

• Beard
• Stinnett
• Gorton
• Ellinger
• Kay
• Ford
• Blues
• Lawless
• Farmer
• Crosbie
• Myers
• McChord
• Martin
• Henson
• Lane

No absences or late arrivals were recorded.

Public Comment

Three speakers addressed the council during the public comment period on October 11, 2011.

Affordable Housing Trust Fund

David Christensen, co-chair of the original commission, spoke at 1:00:04 about the Affordable Housing Trust Fund. He explained that the fund would be administered by an 11-member advisory board. Christensen outlined the funding mechanism, noting that a 1% insurance premium tax would generate approximately $3.8 million annually. He projected an 8-to-1 leverage ratio, meaning the fund's resources would attract additional federal and private funding. Christensen emphasized the importance of establishing a publicly dedicated funding source and stressed that community commitment would be essential to unlock federal and private investment in affordable housing.

Poverty and Housing in Fayette County

Kevin Atkins spoke at 1:32:30 about poverty and housing challenges in Fayette County. He cited recent census data indicating that 26.5% of children in Fayette County live in poverty, a significant increase from 14.7% in 2000. Atkins characterized this statistic as unacceptable and framed housing affordability as a community-wide failure requiring urgent action.

Arena Arts and Entertainment District

Stan Harvey provided an update at 1:34:43 on the Arena Arts and Entertainment District Task Force. He reported that preliminary reports had been completed and announced upcoming public workshops. Harvey noted that a design team had been hired to advance the project. He highlighted the district's potential to expand downtown Lexington by utilizing underutilized public land and integrating civic, cultural, and economic development initiatives.

Contested Items

The October 11, 2011 meeting included two significant areas of disagreement among council members.

Affordable Housing Trust Fund Funding Mechanism

Council members engaged in heated discussion over how to fund the Affordable Housing Trust Fund. The central point of contention was whether to implement a 1% insurance tax increase. Supporters of the tax increase argued it was essential for economic development and housing stability. Opponents rejected any tax increase given the current economic climate and instead advocated for putting the question to a public referendum. The council remained divided on this approach, with no clear resolution reached during the meeting.

Role of Government in Wealth Redistribution

A second area of dispute centered on the appropriate role of government in redistributing wealth through taxation. Council Member Myers questioned whether government-funded redistribution was the right approach, arguing instead that private sector job creation offered a more sustainable solution than tax-funded housing programs. This philosophical disagreement resulted in a split vote among council members, reflecting broader differences in perspective about the most effective way to address housing affordability and economic development.

Affordable Housing Trust Fund Implementation

The committee discussed the feasibility and funding mechanisms for an Affordable Housing Trust Fund during this agenda item 5:00.

Key Discussion Points

The primary focus centered on a proposed 1% increase in the insurance premium tax as a funding source for the trust fund. Committee members engaged in substantive debate regarding several interconnected issues:

• The economic impact of the proposed tax increase
• The necessity of establishing a publicly dedicated funding source
• The appropriate role of government in addressing housing affordability
• Whether to pursue a public referendum on the initiative

Speakers and Positions

Key speakers in this discussion included Henson, Ford, Blues, Myers, McChord, Martin, and David Christensen. Their contributions shaped the debate around both the financial and philosophical dimensions of the proposal.

Outcome

The committee deferred action on this item. Rather than reaching a final decision, the task force was encouraged to reconvene and develop a final recommendation for future consideration. This deferral allowed for additional deliberation on the complex questions raised during the discussion.

Update on Arena & Arts District

Stan Harvey presented an update on the Arena Arts and Entertainment District Task Force 1:33:36. The presentation outlined the work of four committees focused on the redevelopment of 46 acres of public land west of the Lexington Center.

Key Points Presented:

• The task force is working on a comprehensive plan to expand downtown Lexington through the Arena Arts and Entertainment District
• Four committees have been established to guide the redevelopment effort
• Preliminary reports from the committees were shared
• The district's development will emphasize economic development, connectivity, and public space

Next Steps:

Upcoming public workshops are planned to gather community input and feedback on the district's vision and development strategy.

Speakers:

Stan Harvey led the presentation, with Kevin Atkins also participating in the discussion.

Outcome:

This was an informational presentation to update the body on the task force's progress and upcoming community engagement activities.

Items Referred to Committee

This agenda item served as a procedural placeholder for the referral of matters related to the Office of Economic Development and partner agencies. No specific items were discussed during this portion of the meeting. The item functioned in an informational capacity, with an outcome classified as informational rather than action-oriented.