Developers withdraw downtown mixed-use site plan after commission seeks binding parking commitments

Developer Indigo Design Build and the property owner asked the Lexington planning commission on Feb. 19 to withdraw a proposed three-story mixed-use site plan after commissioners said they needed binding commitments to meet parking requirements for the project’s retail, a private sports club and an event space.

David Everson, the planning commission’s contract attorney, handled the staff report after a commissioner recused from the item. Staff told the commission the project proposes two retail spaces on the ground floor totaling 10,654 square feet, a private sports club on the second floor of 9,837 square feet and an event space on the third floor of 4,389 square feet with a 4,651-square-foot rooftop terrace. The project includes 12 on-site parking spaces; staff said the ordinance’s overlay district contemplates reduced on-site parking if shared public parking is available.

"The proposed development is required to provide 50 parking spaces. Currently, 12 on-site parking spaces are provided," the staff report said. The applicant said it has letters of intent from two adjacent properties but did not present executed leases or binding agreements at the meeting.

Sean Mosteller, the property owner, described the design intent: "We're trying to make something that fits into the downtown context that occupies most of the site and therefore most of the required parking is happening in other locations off the site," he said. Architect Dale Marshall said the building was designed to "define the street edge" and to step back sidewalks to create an urban frontage.

Several commissioners said 11–12 on-site spaces were insufficient for employee and patron parking and requested a firm, written commitment for off-site parking. Commissioner Jamie Fite suggested withdrawal so the applicant could obtain contracts and return. One commissioner noted prior instances of "promises made not kept" and said the commission needed written assurances before approving the site plan.

Members of the public spoke in favor and against aspects of the project. Angele Laborde, president of the Lexington Chamber and Visitors Center, supported the project as a downtown placemaking investment and said the event space would be "a significant community asset." Ashley Heil, owner of StrongHer and a tenant in one of the currently occupied spaces on the site, described being displaced but urged the commission to support a local developer: "If that's the only thing keeping you guys from moving this thing forward, find a way. Work with him and his team to problem solve it," Heil said.

After discussion, the applicant formally requested to withdraw the application and return with signed contracts or leases sufficient to demonstrate the off-site parking needed to meet the ordinance standard (staff and commissioners discussed a target of roughly 50 spaces). The commission agreed to consider a resubmitted application after the applicant provides the requested documentation.

The commission also discussed traffic concerns for Church Street and asked staff and the applicant to coordinate on curb cuts and shared drive access to reduce potential conflict points. The application was not approved at this meeting; the applicant will return after obtaining binding parking commitments.