Lexington, Kentucky, December 4, 2025
The Railyard development project in Lexington, Kentucky, will create 32 new apartments, including 12 affordable one-bedroom units, and two commercial spaces. With a budget of $7.5 million, the project aims for completion by December 2026 and will also enhance the neighborhood with improved infrastructure. This initiative is part of a broader effort to address Lexington’s housing shortage and revitalize underutilized land.
Lexington, Kentucky
Kentucky officials have initiated the Railyard development project in Lexington, aiming to construct 32 new apartments, including 12 affordable one-bedroom units, along with two ground-floor commercial spaces for local businesses.
Project Overview
The Railyard development is set to transform a vacant industrial site on Delaware Avenue into a mixed-income and mixed-use community. With an anticipated cost of $7.5 million, this project is expected to be completed by December 2026. Additionally, the development will enhance the surrounding area with improved sidewalks, upgraded lighting, and new bike facilities designed to better connect the neighborhood to its surrounding communities.
Affordable Housing Component
Among the 32 units being built, 12 will be reserved as affordable housing for residents earning up to 80% of the area median income. This component is part of Lexington’s crucial steps toward addressing a significant housing shortage, currently estimated at around 22,500 units, of which approximately 17,005 are classified as affordable housing units.
Historical Significance and Development Challenges
The location of the Railyard development has deep industrial roots, having previously served as a C&O railroad maintenance facility in the 1800s, as well as various other enterprises over the years, including an auto repair shop and a cement facility. The site has remained vacant since 2021, predominantly due to issues related to potential contamination and needed cleanup. Fortunately, the project has benefited from Kentucky’s brownfield program, which provided $20,000 to support professional environmental work to address these challenges.
Statewide Investment Momentum
The initiation of the Railyard development aligns with a broader trend of private sector investments throughout Kentucky. Since taking office, the state has welcomed $44 billion in private investments, culminating in the creation of approximately 64,000 jobs. This project emphasizes the revitalization of underutilized land while simultaneously providing necessary housing solutions for residents.
Background Context
Lexington’s commitment to economic growth through various development projects is evident. Initiatives like the Legacy Business Park, with its $22 million budget expected to generate 1,700 jobs, and the Town Branch Commons Trail, a $22 million green infrastructure project, both contribute to healthy community activity and local economic development.
FAQ
What is the Railyard development project in Lexington?
The Railyard development is a project in Lexington, Kentucky, aiming to construct 32 new apartments, including 12 affordable one-bedroom units, along with two ground-floor commercial spaces for local businesses. The project is expected to cost $7.5 million and is slated for completion by December 2026. The development will also feature improved sidewalks, upgraded lighting, and new bike facilities designed to better connect the neighborhood to surrounding communities.
How many affordable housing units are included in the Railyard development?
Out of the 32 units, 12 will be designated as affordable housing, reserved for residents earning up to 80% of the area median income. This initiative is part of Lexington’s ongoing efforts to address the city’s housing shortage, which currently stands at approximately 22,500 units, with 17,005 of those being affordable housing units.
What challenges did developers face with the Railyard site?
The site on Delaware Avenue has a rich industrial history, having once 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 remained vacant since 2021. Developers faced challenges related to potential contamination and cleanup expenses. However, through Kentucky’s brownfield program, the project received $20,000 in professional environmental work to address these concerns.
How does the Railyard development fit into Kentucky’s broader investment trends?
The Railyard development is part of a broader trend of private sector investments in Kentucky. Since Governor Andy Beshear took office, the state has seen $44 billion in private investments, leading to the creation of 64,000 jobs. This project contributes to that momentum, aiming to revitalize underutilized land and provide housing solutions for the community.
What other development projects are underway in Lexington?
Lexington has been actively pursuing various development projects to stimulate economic growth and address housing needs. Notable initiatives include the Legacy Business Park, a $22 million project expected to bring 1,700 jobs to the area, and the Town Branch Commons Trail, a $22 million green infrastructure project designed to encourage healthy activity and economic development.
Key Features of the Railyard Development
| Feature | Description |
|---|---|
| Number of Apartments | 32 new apartments, including 12 affordable one-bedroom units |
| Commercial Spaces | Two ground-floor commercial spaces for local businesses |
| Project Cost | $7.5 million |
| Completion Date | December 2026 |
| Site Location | Delaware Avenue, Lexington, Kentucky |
| Affordable Housing Component | 12 units reserved for residents earning up to 80% of the area median income |
| Infrastructure Improvements | Enhanced sidewalks, upgraded lighting, and new bike facilities |
| Historical Significance | Former industrial site with a history dating back to the 1800s |
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