On November 18th at 3pm, Council will vote on whether to advance a public-private partnership with the Lexington Opportunity Fund that would build a new Government Center at 200 West Vine Street.
The city has been working to build or acquire a new city hall for decades. In recent years, Council has rejected multiple proposals for a new site, studied several downtown LFUCG-owned properties for viability, and created a Capital Reserve Fund for the primary purpose of eventually funding a new City Hall.
In 2024, LFUCG released an RFP for public private partnerships to finance and construct a new government center. The administration began negotiations with one of the respondents, Lexington Opportunity Fund, a joint partnership between the Greer Companies and the Webb Companies, in April 2025.
Under the proposed agreement, LFUCG would purchase the site and lease it back to the developer for construction. The developer would then renovate and build a new structure, totaling 104,000 square feet, which the city would lease from the developer for 35 years at a cost of $3.5 million per year. At the end of the lease term, the ownership of the building would transfer to the city. The total cost of the redevelopment including property acquisition, design, construction, and financing would be about $86 million.
The new Government Center would be a 104,000 square foot facility located at 200 West Vine Street (the current Truist Bank building, which has also housed BB&T and PNC Bank in past years). The site is about 1.7 acres and includes a 3-level parking garage with 286 spaces.
The total estimated project cost is $86.6 million, broken down as follows:
Site acquisition: $23.6 million (building and parking garage)
Construction and design: $54.6 million (includes construction, design fees, and contingency)
Financing and developer fees: $8.4 million
LFUCG would contribute $30 million up front from its capital reserve account to cover site acquisition and a portion of construction costs, and the remaining costs would be covered through the public-private partnership financing structure.
The city would take ownership of the site immediately upon approval and provide a ground lease to the Lexington Opportunity Fund for construction.
Annual lease payments of $3.5 million would begin when the city moves into the building, anticipated in FY 2028. After the 35-year facility lease ends, LFUCG would own the building and grounds.
Why does the city need a new Government Center?
The current City Hall at 200 East Main Street is in disrepair. It requires millions of dollars in maintenance annually and has an estimated $55 million in deferred maintenance needs. In recent years, LFUCG has spent $4.3 million on elevator replacements, HVAC improvements, parking garage renovations, and other repairs.
The administration has outlined a vision for the new Government Center that it hopes would be:
More financially efficient to operate
More accessible to the public
A better workplace environment for city employees
A community hub with welcoming spaces for dialogue and service
A downtown anchor connecting government and community
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How can you get involved? You can provide public comment during the Council Work Session at 3pm on November 18th in Council chambers. There will be additional public comment opportunities at future Council Meetings should this item advance.
