LEXINGTON, Ky. — The Urban County Council approved a long-delayed lease agreement during its March 26 meeting for a massive solar energy project at the Haley Pike Landfill, clearing the way for construction to begin before expiring federal tax credits run out.

The city will lease approximately 357 acres to Edelen Renewables, a Lexington-based company specializing in renewable energy projects on former industrial sites, for $85 per acre. The company has indicated it needs to begin construction by July to qualify for federal tax incentives. The project is expected to generate enough electricity to power about 5,300 Kentucky homes.

The council voted 10-3 to approve the lease after three postponements in recent months, during which councilmembers raised concerns about pricing and a proposed Community Benefits Agreement. Edelen Renewables responded by doubling the Community Benefits Agreement fee from $125 per megawatt to $250, addressing councilmember concerns about ensuring local residents benefit from the project.

The approval, however, comes at a significant cost to the Lexington Model Airplane Club, which has operated at the landfill for more than 20 years for just $1 annually. The club, with a 67-year history in Lexington, will be forced to relocate once its current lease expires in April.

Club members filled the council chambers Thursday night, appealing for a compromise. "For over 65 years, we have taught generations of Lexingtonians about the laws of physics, the thrill of flight, and the value of mentorship," James Newberry, a board member, told the council. The club operates a 650-foot paved runway and holds special Federal Aviation Administration clearance that members say will be difficult or impossible to obtain at a new location.

Chief Administrative Officer Sally Hamilton was tasked with finding an alternative site but determined that "both projects are good" but "they just can't coexist with each other." A site near the West Hickman Wastewater Treatment Plant was explored but would require $600,000 in grading to construct proper facilities. Edelen Renewables' CEO has agreed to allow the club to remain at the current site until May, providing additional time to relocate.

The decision marks a victory for Edelen Renewables, which specializes in socially impactful renewable energy projects and has become a major player in converting former industrial sites like coal mines and brownfields into solar installations across the country. The project is expected to move forward with approval of industrial revenue bonds and the final Community Benefits Agreement later this summer.