Lexington, Kentucky, December 4, 2025
Lexington officials have launched construction on The Railyard, a $6 million mixed-use project on Delaware Avenue, featuring 32 residential units and commercial spaces. This initiative aims to revitalize a vacant industrial site and address the city’s housing shortage while supporting local businesses. The project, expected to start in summer 2025 and complete by December 2026, is part of a broader effort to transform underutilized areas into vibrant community hubs.
Lexington, Kentucky
Lexington officials have initiated construction on The Railyard, a $6 million mixed-use development aimed at revitalizing a vacant industrial site on Delaware Avenue. The project is set to provide 32 residential units, including 12 affordable housing units, and two commercial spaces, addressing the city’s housing shortage and supporting local businesses.
Project Overview
The Railyard is a $6 million mixed-use development located on Delaware Avenue in Lexington, Kentucky. The project includes:
- 32 residential units, comprising 20 market-rate units and 12 affordable housing units reserved for households earning up to 80% of the Area Median Income (AMI).
- Two commercial spaces, each spanning 1,500 square feet, designed to support locally owned businesses and foster entrepreneurial growth in the neighborhood.
Construction Timeline
Construction on The Railyard is anticipated to begin in summer 2025, with an estimated completion time of approximately 12 months, aiming for a completion date by December 2026.
Site Background
The development is situated on a one-acre site on Delaware Avenue that has been underutilized for years. Historically, the land housed a C&O railroad maintenance facility in the 1800s, followed by various businesses, including an auto repair shop, a cement facility, and a stonework operation. Due to its industrial background, the land has sat vacant since 2021. Developers faced challenges related to potential contamination and cleanup expenses. However, through the state’s brownfield program, $20,000 was invested in professional environmental work to address these concerns, enabling the project’s progression.
Community Impact
The Railyard aims to address Lexington’s housing shortage by providing affordable housing options and supporting local businesses. The development is part of a broader effort to transform underutilized industrial areas into vibrant residential and commercial hubs, contributing to the city’s economic growth and community revitalization.
Funding and Support
The project has received financial assistance from the Lexington-Fayette Urban County Government and Kentucky state programs. Developer Will Hanraham secured grants and loans through the city’s economic development and water quality divisions. Additionally, the Lexington Office of Affordable Housing is reviewing an application for funding support, aligning with the city’s ongoing initiatives to create more equitable housing opportunities.
Related Developments
In June 2025, Lexington officials broke ground on the Legacy Business Park, a 200-acre development expected to generate approximately 1,700 jobs and close to $100 million in payroll. This project aims to enhance the city’s business infrastructure and diversify its economic landscape. The Legacy Business Park is located near the Coldstream Research Campus and features 19 lots for development, bike and pedestrian trails connecting to the city’s Legacy Trail, and extensive green spaces.
Conclusion
The Railyard development represents a significant step toward revitalizing underutilized industrial sites in Lexington, providing much-needed affordable housing, supporting local businesses, and contributing to the city’s economic and community development efforts.
FAQ
What is The Railyard project?
The Railyard is a $6 million mixed-use development located on Delaware Avenue in Lexington, Kentucky. The project includes 32 residential units, comprising 20 market-rate units and 12 affordable housing units reserved for households earning up to 80% of the Area Median Income (AMI), and two commercial spaces designed to support locally owned businesses and foster entrepreneurial growth in the neighborhood.
When will construction begin?
Construction on The Railyard is anticipated to begin in summer 2025, with an estimated completion time of approximately 12 months, aiming for a completion date by December 2026.
What is the background of the site?
The development is situated on a one-acre site on Delaware Avenue that has been underutilized for years. Historically, the land housed a C&O railroad maintenance facility in the 1800s, followed by various businesses, including an auto repair shop, a cement facility, and a stonework operation. Due to its industrial background, the land has sat vacant since 2021. Developers faced challenges related to potential contamination and cleanup expenses. However, through the state’s brownfield program, $20,000 was invested in professional environmental work to address these concerns, enabling the project’s progression.
How will The Railyard impact the community?
The Railyard aims to address Lexington’s housing shortage by providing affordable housing options and supporting local businesses. The development is part of a broader effort to transform underutilized industrial areas into vibrant residential and commercial hubs, contributing to the city’s economic growth and community revitalization.
Who is funding The Railyard project?
The project has received financial assistance from the Lexington-Fayette Urban County Government and Kentucky state programs. Developer Will Hanraham secured grants and loans through the city’s economic development and water quality divisions. Additionally, the Lexington Office of Affordable Housing is reviewing an application for funding support, aligning with the city’s ongoing initiatives to create more equitable housing opportunities.
Are there other similar developments in Lexington?
Yes, in June 2025, Lexington officials broke ground on the Legacy Business Park, a 200-acre development expected to generate approximately 1,700 jobs and close to $100 million in payroll. This project aims to enhance the city’s business infrastructure and diversify its economic landscape. The Legacy Business Park is located near the Coldstream Research Campus and features 19 lots for development, bike and pedestrian trails connecting to the city’s Legacy Trail, and extensive green spaces.
Key Features of The Railyard Development
| Feature | Details |
|---|---|
| Location | Delaware Avenue, Lexington, Kentucky |
| 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 |
| Site Background | Former industrial site with historical significance; vacant since 2021 |
| Community Impact | Addresses housing shortage, supports local businesses, contributes to economic growth |
| Funding and Support | Assistance from Lexington-Fayette Urban County Government, Kentucky state programs, and private developer |
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