LEXINGTON, Ky. — The Lexington-Fayette Urban County Council approved multiple development initiatives during a work session on July 1, including zoning changes intended to spur mixed-use development in an industrial area near Chair and Heyman avenues.

The council approved an ordinance to change zoning from light industrial and wholesale warehouse classifications to Corridor Node zone for approximately 4.4 acres on Chair Avenue, Heyman Avenue, and South Broadway. The Corridor Node designation is intended to spur mixed-use development in the area.

The council also approved budget amendments and appropriations for fiscal year 2027, moving pending purchase orders from the current fiscal year to cover ongoing construction and professional service projects. Council members further approved amendments to add grant budget allocations for several programs, including the Motor Carrier Safety Program, Victim of Crime Act, and a Kentucky Overdose Response Effort quick response team.

In other business, the council amended a tax incentive agreement related to the Lexington Center Development Area, allowing state sales and use tax exemptions on approved construction materials retroactive to June 24. The agreement carries no additional cost to the urban county government.

The council removed from consideration an agenda item related to a survivors assistance agreement following the withdrawal of the selected service organization.

Separately, the council reviewed proposed artificial intelligence policies aimed at ensuring responsible use and maintaining public accountability. Staff also presented a proposal to establish long-term performance standards for government buildings to support the city's climate goals.

During the meeting, resident Rick Day raised concerns about inconsistent handling of employee misconduct at different city facilities, comparing procedures at Bird Thurman Drive with those at 200 East Main.