Neighbors, including Shadwell Farm, oppose short‑term rental near horse operations; board approves hosted STR with conditions

The Lexington‑Fayette Board of Adjustment on May 20 approved a conditional use permit for a hosted short‑term rental at 3921 Military Pike despite opposition from nearby agricultural operators, who asked the board to deny the application or attach strict limits to prevent event use.

Attorney Jessica Winters spoke for Shadwell Farm and neighboring owners, saying the property’s context is sensitive because adjoining parcels contain thoroughbred breeding and training operations. Winters told the board that the applicant had been operating short‑term rentals without required licensure and that recent development on the site—most notably demolition of an historic barn and construction of a large new structure—suggested a plan to operate an event venue. “A massive costly event venue has been constructed on the subject property…Based on its appearance and materials, here is the event venue,” Winters said, adding she had learned at least one wedding was planned there. She urged that approval be denied or limited so “no events exceeding the requested occupancy of the short term rental…shall be held on the subject property.”

Applicant representatives responded that the short‑term rental is a hosted operation and that the cottage historically served guests for decades. One speaker with an engineering background said the cottage had been used for short stays for many years and argued the present application was consistent with prior use; another applicant speaker said she manages agricultural activities on the property (beekeeper, honey processing) and that guests are older adults seeking quiet farm stays, not events. The applicant disputed claims that the site was intended as an event venue and said processing rooms referenced in permit filings (a cooling or storage room for agricultural products) are not party spaces.

Planning staff recommended approval with amended findings to reflect required health‑department verification for septic adequacy on agricultural properties, and with six standard conditions for an agricultural hosted STR, including occupancy limits and proof of septic sufficiency. Board members moved to approve the conditional use permit on the staff‑recommended terms and amendments; the motion passed.

The board’s action allows a hosted short‑term rental on the agricultural parcel with conditions. Opponents said they would monitor the site, and staff noted separate building‑inspection and development‑plan matters (including a commercial HVAC permit the staff found mentioning a “cake room”) may trigger further review outside the STR application.