Lexington — The Town of Lexington Council on Monday, Jan. 6, 2025, voted unanimously to ratify an executive-session report and authorized the town administrator to sign a settlement agreement connected to a planning commission dispute; approved the final reading of an annexation on East Main Street; advanced first-reading budget and ordinance items; and approved two 50-year ground leases to allow municipal parking lots. The council deferred a final decision on a development impact fee update to a special meeting for further review.

The council began the meeting by reporting it had met in executive session to discuss negotiations related to proposed contractual agreements, settlement of legal claims tied to a planning commission dispute, and personnel matters. Mayor Pro Tem Ron Williams moved to ratify the executive-session report; the motion was seconded and carried unanimously. The council then voted, also unanimously, to “allow the town administrator to sign the settlement agreement related to legal claims relating to the planning commission dispute,” as recorded by the clerk; no vote detail by individual council member names was recorded in the meeting transcript.

Why it matters: The council’s authorization to execute a settlement closes a matter that was handled in executive session and places responsibility for final execution with the town administrator. The annexation and the parking leases expand the town’s ability to manage growth and provide public parking; the impact-fee update will determine how new development helps pay for infrastructure.

Key actions and outcomes
- Executive-session ratification and settlement authorization: Motion to ratify the executive-session report passed unanimously by voice/hand raise. Motion to allow the town administrator to sign the settlement agreement also passed unanimously. (Motion text and action appear in the executive-session report portion of the transcript.)

- Annexation — final reading approved: The council approved final reading to annex 4.7 acres owned by Clinton Ray Carpenter on the 800 block of East Main Street; the planning commission had recommended protected residential zoning. The council’s vote was unanimous on final reading.

- Midyear FY2025 budget adjustment — first reading approved: Council approved first reading of an ordinance to amend the FY2025 budget to reflect departmental reorganizations and staffing adjustments. The motion passed unanimously.

- Landscape and tree ordinance amendments (first reading) and application of the pending-ordinance doctrine — approved: Council voted to approve first reading of redlined amendments to Ordinance No. 156 (landscaping and trees) and to apply the pending ordinance doctrine; the measure passed unanimously. The ordinance will return to the planning commission for further review and public hearing before any second reading.

- Ground leases for municipal parking — approved: The council authorized a 50-year ground lease with Old Mill LLC for a municipal parking lot on East Main Street (no lease payment) to allow construction of a parking lot and enclosed dumpster corral; it also authorized a separate 50-year ground lease with Old Mill LLC for a 15-space lot on South Lake Drive. Both motions passed unanimously.

- Project management contract for East Main parking lot — approved: Council authorized the town administrator to enter a project management agreement with LCK (exhibit in meeting packet) and to authorize expenditure from the streets and infrastructure fund to cover the manager’s fee. The motion passed unanimously.

What the council did not finalize: The development impact fee update (phase 1) — staff and a planning consultant presented an update on parks/recreation and municipal facilities/equipment impact-fee calculations and the required five-year review under state law. Council members asked detailed questions about discount rates, which categories pay which fees (parks fees apply only to residential, municipal facilities to both residential and nonresidential and transportation to all land uses), and examples of how the fee affects single-family and retail development. The council chose to meet again at a special meeting (scheduled for Jan. 12) to consider a first reading vote after additional review.

Details and next steps
- Annexation: The property (4.7 acres) will be annexed into the town with protected residential zoning as recommended by the planning commission; further development will be subject to town zoning and permitting.
- Leases: Both ground leases are 50-year terms and include town responsibility for operations and maintenance of the parking facilities; no lease payments were described in the transcript.
- Impact fees: Staff indicated the current single-family out-the-door impact fee was roughly $2,500; the presenter said parks/recreation accounted for about half of that in the current schedule, with transportation and municipal facilities making up the remainder. The transportation fee remains to be updated pending a separate transportation plan. Council asked for additional detail and scheduled a special meeting to act on the ordinance first reading.

The meeting adjourned after brief announcements; a recording of the session will be available on the town’s YouTube channel.