Lexington's payroll growth is expected to grow at a slower rate over the coming years, likely impacting the city's ability to create new positions and recurring programs.
The district would generate an estimated $2.1 million annually for tourism marketing and destination development via a 2% fee on hotel rooms in the district.
In this Tuesday's Budget, Finance, and Economic Development Committee, Council will hear a presentation from LexArts, Lexington's United Arts Fund, on their audit of Lexington's arts and culture economy.
Sound Diplomacy conducted the study, which was funded by a one-time $300,000 allocation from LFUCG to create a master plan for the arts in Lexington.
What did the audit find about the economic impact of the arts and culture ecosystem?
Sound Diplomacy's research shows that there are about 7,000 jobs in Lexington's arts and culture sector, representing about 4% of all employment. In total, the sector generates about $1 billion in economic activity. The audit also found that for every $1 of economic output from the arts and cultural ecosystem, an additional $0.62 is created locally across other industries.
However, the audit shows the sector has been declining in recent years. Between 2017 and 2021, the gross value added to the economy by the sector in the Lexington-Fayette Metropolitan Statistical Area (MSA) — which includes Fayette County and eight surrounding counties — declined 16%, from $771 million to $648 million. During this same period, the region's gross domestic product — or total economic output — rose 3.4%, from $29.5 billion to $30.5 billion.
The study also looked at arts and cultural assets in the Lexington-Fayette region. It identified that almost half of all arts and cultural assets in the region are located inside Lexington-Fayette County.
What gaps in the arts and culture ecosystem are identified in the report?
The report found that most artists and creatives in Lexington's arts and culture ecosystem can't make enough money from their craft to cover basic needs, including 85% of creatives and 70% of arts and cultural organizations. About one-third of all artists and arts organizations have considered moving away from Lexington because of the lack of economic opportunity in the sector.
The study also notes a significant gender pay gap, with men in the arts and cultural ecosystem earning on average 28.9% more than women.
Several other challenges were raised in the study, including limited professional development opportunities, inadequate city services for artists including licensing and permitting processes for cultural events, and more.
What are the recommendations?
The audit contains 24 recommendations across a wide range of categories, most of which appear to be targeted at LexArts itself, not the broader cultural ecosystem.
Creative Economy Development
Establish Oversight of the Implementation of the Arts and Cultural Economy Audit
Review, Update and Communicate the LexArts Strategic Governance Plan to the Public
Increase Cultural Funding Through Existing Revenue Streams
Review and Communicate the Standardized Scoring System to Assess LexArts Grant Applications, and Advocate for Other Funding Bodies to Follow Suit
Continue to Convene the DEI Committee at LexArts to Build Out the Sector-wide DEI Strategy
Professional Development, Talent Retention and Business Development
Organize Workshops, Lectures and Networking Sessions to Provide Professional Development Opportunities for the Creative Industries
Establish a Creative Economy Stimulus and Cultural Entrepreneurship Program
Advocate for a Job Creation Program and a Freelancer Support Group
Partner with Commerce Lexington to Recruit Businesses that Fill Gaps in the Arts Sector
Host an Annual Arts and Cultural Industries Conference
Create a Database of Lexington Arts Stakeholders and Spaces
Create Best Practice Guidelines to Make the Cultural Ecosystem more Equitable, Accessible and Sustainable
Licensing, Regulations and Zoning
Advocate for Arts Friendly Regulations and Licensing Processes
Create a One-stop Shop for Art and Cultural Permits, Licenses, Grants, and Guides
Ensure the Incorporation of the Arts as a Central Component of Downtown Master Plan
Cultural Infrastructure
Repurpose Vacant and Underutilized Spaces for the Arts and Cultural Sector
Advocate for Incentives to Retrofit and Upgrade Existing Cultural Infrastructure
Advocate for a Pilot Program that Offers Extended Public Transit during Major Events
Host Regular Workshops on Safety during Cultural Events
Arts Education
Foster Partnerships to Augment Public Arts Education
Marketing, Communication & Audience Development
Create a Centralized Calendar with Information for all Creative Events in the City, Including Events at Restaurants
Create an Audience Development Program Targeting the Student Population
Develop a Wider Evening and Weekend Events Offer
Cultural Tourism
Partner with VisitLEX to Create a Cultural Tourism Strategy and Marketing Campaign
📺
Watch the meeting: The Council Budget, Finance, and Economic Development Committee will meet at 1pm on Tuesday, February 24th, 2026 at 1:00pm in Council Chambers. You can attend in-person or watch live on LexTV.
Three musicians, born and raised states away, find themselves among family at a local bar every Monday night. They come for the music and stay for the community.
