# Where does Lexington's new Government Center stand? Council gets an update this week **Published:** 2026-06-15T10:00:46.000Z **Source:** [CivicLex](https://news.civiclex.org/where-does-lexingtons-new-government-center-stand-council-gets-an-update-this-week/) **Republished from:** [CivicLex](https://news.civiclex.org/where-does-lexingtons-new-government-center-stand-council-gets-an-update-this-week/) (CC BY-NC-ND 4.0) **Canonical:** https://news.civiclex.org/where-does-lexingtons-new-government-center-stand-council-gets-an-update-this-week/ By Aaron Mudd, [CivicLex](https://news.civiclex.org) · June 15, 2026  This week, Council will get an update on plans for Lexington's new downtown Government Center, including the public-private partnership the city wants to use to build and finance the project. In December, [Council narrowly advanced the public-private partnership](https://news.civiclex.org/council-advances-new-city-hall-proposal/) (P3) proposal for the new Government Center by an 8-7 vote. At the time, opponents questioned whether the city could commit to $152.5 million over 35 years, particularly given uncertainty at the federal level and local needs. Supporters, however, noted that a new Government Center had been postponed for decades and that further delays would only drive up project costs. During its Tuesday Work Session, Council will hear a presentation from General Services Commissioner Chris Ford about the project's progress. 💼**Download:****Review the packet for this meeting [here](https://drive.google.com/file/d/14tr6fD06MZ1LdQ8ivd6Ml64ehOP7NUBE/view?ref=news.civiclex.org), including the presentation beginning on page 70 of the PDF. ### What's the scope of the project? In a June 10th letter to state officials included in the meeting materials, Mayor Linda Gorton makes the case for the public-private partnership agreement with the Lexington Opportunity Fund, the project's developer. The [Lexington Opportunity Fund](https://www.kentucky.com/news/local/counties/fayette-county/article304421951.html?ref=news.civiclex.org) is a partnership between Greer Companies and the Webb Companies, as the Lexington Herald-Leader has previously reported. Located at 200 West Vine Street, the downtown site includes an existing office building and recently remodeled 286-space parking garage. Gorton notes the site was selected through an RFP (request for proposal) process.The project involves acquiring and remodeling the existing building at 200 West Vine Street, with a total estimated project cost of $86.7 million. That cost includes: - $23.6 million for site acquisition. - $47.5 million for construction and design. - $7.1 million for contingency or rainy day funding - $8.4 million in "soft costs" that cover financing, additional contingency and developer fees. ### How does the public-private partnership work? The partnership with the Lexington Opportunity Fund, the project's developer, is for the design, building and financing of the new Government Center.It would use a "design-build-finance" model that works like this: 1. Lexington-Fayette Urban County Government pays $30 million from its existing capital reserve fund to purchase the site and cover initial construction costs. 2. The developer gets a private construction loan to finance the rest of the construction. Its team will deliver the project under a "guaranteed maximum price" that still needs to be negotiated. 3. After the construction is complete, LFUCG leases the facility for an estimated $3.4 million each year over 35 years. The money would be used to help cover the project's long-term financing. The agreement also allows LFUCG to purchase the completed facility and issue bonds (borrow money) to cover the debt at any time. Citing a third-party study, Gorton notes in her letter that this approach would deliver the project 12 months faster, save roughly $2.2 million, and protect against cost overruns that the city would otherwise be responsible for. ### What's next? While it's years in the making, the project still has several major milestones ahead.Those include negotiating a guaranteed maximum price under which the developer will complete the project, community engagement, and approval before a state board in the fall. Then there's the closing/site acquisition, design and groundbreaking for the project. Given all that, it's likely years down the road before Lexington's new downtown Government Center opens its doors to the public.  🫵How can you get involved?****Review the presentation and the Mayor's letter in this [meeting packet.](https://drive.google.com/file/d/14tr6fD06MZ1LdQ8ivd6Ml64ehOP7NUBE/view?ref=news.civiclex.org)📺Watch the meeting:** The presentation will take place during Council's Work Session on Tuesday, June 16th at 3 p.m. in the Government Center's Council Chamber. You can attend in-person or watch [live on LexTV.](https://www.lexingtonky.gov/government/departments-programs/chief-administrative-officer/lex-tv?mc_cid=c50b8d4040&mc_eid=bf5625796d&ref=news.civiclex.org) ## Sources - [CivicLex](https://news.civiclex.org/where-does-lexingtons-new-government-center-stand-council-gets-an-update-this-week/)