Council approves new process for determining Urban Service Area expansion

In its February 12th meeting, Council unanimously approved the Lexington Preservation and Growth Management Program, establishing a formal process for deciding whether and when to expand the Urban Service Area.

The new process is built to make expansion decisions more transparent and data-driven. Over the past several decades, USA expansion decisions were made during the five-year Comprehensive Plan update process, which has often become contentious and political on Council. The last USA expansion occurred in 2023, the first change to the boundary since 1998.

How will the new process work?

The process will include five major steps:

Step One: Growth Trend Report

Every five years, Planning staff will prepare a report calculating projected land needs in Fayette County for the next 20 years.

• The formula will use projected population growth from the Kentucky State Data Center, average household size, and dwelling unit density per acre
• The Planning Commission will review the report and recommend strategies to meet growth needs

Step Two: Council Review

Once Planning Commission has reviewed the recommended strategies to meet growth needs, Council will review the recommendation.

• Council can either accept, reject, or amend the recommendation
• Council must consider policy changes within the existing USA before considering expansion

Step Three: Vacant Land Review

Once Council has reviewed the recommendation, a nine-member subcommittee (three members each appointed by Planning Commission, Council, and Mayor) will review vacant land within the current USA

• Vacant land is defined as property inside the USA that is zoned agricultural, has no urbanized land use, and doesn't have a certificate of occupancy
• Exclusions include churches, schools, floodplains, common areas in subdivisions, and some government-owned land
• The subcommittee will recommend whether any parcels should be removed from the USA

Step Four: Expansion Proposals

Following Vacant Land Review, if expansion is needed, the Planning Commission will open a 60-day window for property owners to submit proposals

• Eligible land must be adjacent to the USA and able to connect to stormwater and sewer infrastructure
• The subcommittee will evaluate proposals and make recommendations to the Planning Commission
• The Planning Commission will vote on what areas to add to the Urban Service Area

Step Five: Master Planning

Once expansion areas are determined, Council will allocate funds for Master Plans for the newly added areas

• After the Master Plan is complete, the Planning Commission will vote to approve it as an amendment to the Comprehensive Plan

Special Economic Development Need

The ordinance allows property owners to submit proposals at any time for economic development projects, but not residential developments. Requirements include:

• Proposals must be under 250 acres
• Must include a development plan, data showing a unique employment benefit, and proof of infrastructure access
• A minimum of 10 council members must vote to initiate a zone change for any proposal