Lexington, October 10, 2025
News Summary
The Lexington Planning Commission has approved The Railyard, a $6 million mixed-use project on Delaware Avenue that will feature 32 residential units, including affordable housing, and commercial spaces. The aim is to revitalize a vacant area and address the city’s housing shortage, with construction expected to start in summer 2025. The development will include 12 affordable units for households earning up to 80% of the Area Median Income, alongside support for local businesses.
Lexington’s Planning Commission has unanimously approved The Railyard, a $6 million mixed-use development on Delaware Avenue, set to provide both affordable housing and commercial spaces. The project is spearheaded by local developer Will Hanrahan and aims to revitalize a vacant and deteriorating one-acre site that has been underutilized for years.
The Railyard is designed to offer a total of 32 residential rental units, including 12 units reserved for households with incomes up to 80% of the Area Median Income (AMI), ensuring a portion of the development is affordable to those in need. The remaining 20 units will be rented out at market rates, aiming to cater to a diverse population.
Construction on the project is anticipated to begin in summer 2025, with an estimated completion time of approximately 12 months. Additionally, the development will house two commercial spaces, each spanning 1,500 square feet, which are intended to support locally owned businesses and foster entrepreneurial growth in the neighborhood.
The Railyard is not only a step toward addressing Lexington’s housing shortage but also represents a broader effort to transform underappreciated industrial areas into vibrant residential and commercial hubs. City leaders have emphasized the need for targeted public investment and collaboration with private developers to meet housing demands while avoiding expansion of the Urban Service Area, which would increase costs related to farmland and infrastructure.
Moreover, the Lexington Office of Affordable Housing is currently evaluating an application for funding support for the project, which aligns with the city’s ongoing initiatives to create more equitable housing opportunities. With the city facing a significant housing shortfall—projected to require more than 20,000 new homes within the next two decades—the importance of developments like The Railyard cannot be overstated.
Lexington’s affordable housing manager, Rick McQuady, reported that the city has allocated $5 million annually to support affordable housing projects, successfully financing nearly 3,700 units to date. In addition to The Railyard, another project is in development at the High Street site at Woodland Christian Church, which aims to create 38 safe, affordable housing units backed by a $3.2 million city loan.
As the city moves forward, a new Preservation and Growth Management Plan is under development, aimed at evaluating future housing requirements and determining when to adjust the city’s growth borders. Public feedback has underscored a community preference for infill development over expanding the city’s boundaries, signifying a collective desire to optimize the use of existing urban land.
The Railyard is viewed as a pivotal model as it encapsulates the potential for cooperation between private developers and city officials to tackle the pressing issue of affordable housing while adhering to smart growth principles.
Key Features of The Railyard Development
| Feature | Details |
|---|---|
| Location | Delaware Avenue |
| Total Investment | $6 million |
| Residential Units | 32 total: 20 market rate, 12 affordable |
| Affordable Housing Qualification | Households earning up to 80% of AMI |
| Commercial Space | Two 1,500-square-foot units |
| Construction Timeline | Begins summer 2025, 12 months to complete |
FAQ
What is The Railyard project?
The Railyard is a $6 million mixed-use development in Lexington that will provide 32 residential rental units and commercial spaces, aimed at reviving a vacant site on Delaware Avenue.
When will construction begin?
Construction is expected to begin in summer 2025, taking roughly 12 months to complete.
How many affordable units will The Railyard provide?
The development will include 12 units reserved for households earning up to 80% of the Area Median Income (AMI).
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Additional Resources
- LEX18: Affordable Housing Initiatives in Lexington
- Wikipedia: Affordable Housing
- Bloomberg: Lexington’s Greenbelt Debate
- Google Search: Lexington affordable housing news
- YieldPro: The Landing at Lakewood Harbour
- Encyclopedia Britannica: Urban Development
- Market Urbanism: Expanding Affordable Housing in Lexington
- Google News: Lexington urban development
Author: STAFF HERE LEXINGTON KY STAFF
The LEXINGTON STAFF WRITER represents the experienced team at HERELexingtonKY.com, your go-to source for actionable local news and information in Lexington, Fayette County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Woodland Art Fair, Crave Food and Music Festival, and Railbird Festival. Our coverage extends to key organizations like Commerce Lexington and Blue Grass Community Foundation, plus leading businesses in education, manufacturing, and technology that power the local economy such as University of Kentucky, Toyota Motor Manufacturing, and Lexmark. As part of the broader HERE network, including HEREBowlingGreen.com and HERELouisville.com, we provide comprehensive, credible insights into Kentucky's dynamic landscape.
