View the current boundary of the Management District here.
View a Presentation about the Management District here.
About us
FAQs
1. What is a Management District?
A MD is a public/private partnership in which property and business owners elect to make a collective investment in their commercial district. Examples include promotion, beautification and advocacy.
A MD is based upon the “benefit district concept,” which allows for an assessment on property within a defined area. Revenues from this assessment are directed back to the defined area to finance services approved by its Board of Directors.
2. Why are Management Districts created?
The purpose of a MD is to improve conditions for business in a specific area, attract and retain businesses, generate jobs and improve the quality of life for those who use the district. A MD enables stakeholders to decide which services to provide to meet the districts unique needs.
MDs represent a concerted effort by business leaders to establish well-funded, professional organizations that can work to change perceptions of their district, to surmount the limits of public resources, and to respond to challenges from regional malls or other competitive developments.
3. What motivated the formation of Management Districts?
The formations of most MD’s are in response to development trends that have generally shaped metropolitan regions since 1960. For example: the movement of people out of cities, the proliferation of suburban shopping centers, office campuses, theme parks, and entertainment centers, the steady erosion of downtown’s and main street’s share of shoppers and workers.
4. Why does Downtown Lexington need a Management District?
-There is not a consistent wide-range marketing plan, nor funds to implement one, for Downtown Lexington. (The DLMD would market the central downtown district as a whole shopping, dining, service and entertainment destination.
-Downtown Lexington is not comparable to other cities in their beautification efforts (The DLMD would enhance beautification efforts).
-Competition between Downtown, Hamburg and the Fayette Mall area.
5. How would the DLMD improve Downtown Lexington?
Maximizing Marketing: To promote the benefits of the district as an important community asset and a unique place to shop, dine and play for residents and visitors throughout the greater Lexington/Fayette County area.
Welcoming environment: Maintain a friendly, welcoming, accessible and unique environment within the DLMD.
Enhancing Beautification: DLMD would enhance plantings and amenities in downtown to further the quality
of life experiences of our residents, workers and visitors.
6. What could the DLMD do for Downtown Lexington?
Ongoing comprehensive marketing, cooperative advertising, general advertising, public relations and media coverage, holiday campaign, promotions, enhance streetscapes, creating an aesthetically pleasing and welcoming environment, street ambassadors.
7. How will the DLMD be funded?
The DLMD will be funded through assessments on all taxable properties within the District at a rate of $.10 per $100 of assessed value. Annual operating budget would be approximately $436,000. Average contribution is $300, and the average contribution range is $50-$23,000. Total number of property owners is 398 businesses and individuals.
8. How will the management district be administered?
The Downtown Lexington Management District will be administered by the Downtown Lexington Corporation. Management Districts can be managed by an organization that is either quasi-public agency or a nonprofit corporation.
KRS 91.752 Authority for establishment of district
A city of the first class, consolidated local government, or urban-county government may establish one (1) or more management districts pursuant to KRS 91.750 to 91.762, for the purpose of providing and financing economic improvements that specially benefit property within the management district.
KRS 91.754 Petition proceedings to request establishment of district
(1) A city, consolidated local government, or urban-country government may initiate proceedings to establish a management district upon receipt by the executive authority of a written petition requesting the formation of a management district. A petition requesting the formation of a management district shall contain:
(a) The signatures and address of at least thirty-three percent (33%) of the owners of real property within the proposed management district and a number of real property owners, who together are the owners of real property equal to at least fifty-one percent (51%) of the assessed value of property within the proposed management district;
(b) An accurate description of the boundaries of the proposed management district;
(c) An economic improvement plan that shall provide:
A description of the economic improvements to be provided within the district;
A preliminary estimate of the annual costs of the proposed economic improvements;
The proposed method of assessing the costs of the economic improvements against the properties; and
(d) The proposed makeup of the board of directors of the management district, its powers and duties.
(2) When a petition satisfying the requirements of subsection (1) of this section is received by the executive authority, he or she shall forward it to the legislative body which my proceed to enact an ordinance establishing a management district as provided in KRS 91.756
What is the Downtown Lexington Corporation (DLC)?
The Downtown Lexington Corporation (DLC) has a unique position as a membership and non-profit organization. The work is an ongoing process and the momentum has been focused on new growth and change.
DLC, with more than 350 members who represent the largest businesses, the smallest proprietors and entrepreneurs, neighborhood associations, churches, educational institutions, and individuals, is a community and business advocacy group founded in 1988. DLC encourages responsible economic development in the downtown business core and in the various neighborhoods surrounding this central area. DLC advocates diversity, communication and leadership in assisting property owners, businesses, employees and residents in making Downtown Lexington a location for retail businesses, restaurants, offices, arts and cultural activities as well as a wonderful place to live and work. For more information please visit www.downtownlex.com.
Please note that the DLC and the DLMD will operate jointly, but independently meaning that the DLC and the DLMD will be separate entities, with separate funds, and separate board of directors. We the DLC believe this will be a beneficial partnership. By utilizing existing staff, infrastructure and resources of DLC the DLMD can be an even better steward of available funds. Together the DLC Board of Directors and the DLMD Board of Directors will represent 350 DLC members and 350+ downtown property owners, who will have a powerful voice to advocate for the needs of downtown.
Who will comprise the DLMD Board of Directors?
Oversight of the Downtown Lexington Management District is the responsibility of a board of directors that may reflect the diversity of the community but whose membership is dominated by the business and property interests who are responsible for paying the lion’s share of the assessment rate.
(A) The District shall constitute a body corporate, with the power to contract and be contracted with. The affairs of the District shall be managed and controlled by a Board of Directors composed of not more than fifteen (15) members, who shall be appointed for three (3) year terms, except as otherwise provided for the initial appointees, and who shall be eligible for reappointment to one additional term. At least ten (10) of the total number of Board members shall be assessed property owners and/or representatives or designees of assessed property owners within the District (excluding ex officio members who otherwise may be assessed property owners).
Members of the Board shall be appointed as stated by the ordinance:
(1) The Executive Committee of the Board shall nominate individuals for membership on the Board and submit such names to the Mayor and the Urban County Council. The Mayor, with approval of the Urban County Council, shall appoint the members of the board.
(a) At least one board member shall be an owner or designee of a retail business;
(b) At least one board member shall be an owner or designee of a residential property;
(c) At least four board members shall be an office building owner or designee of the owner;
(d) At least one board member shall be a parking facility owner or designee; and
(e) At least one board member shall be an owner or operator of a restaurant, food service or hotel/lodging facility; and
(f) At least one board member shall be a tenant of an office building.
(2) Ex officio members of the Board shall be as follows:
(a) The Mayor, or his or her designee;
(b) A representative or designee of the DLMD
(c) The 3rd District Urban County Council member.
(3) All members appointed to the Board of Directors, including ex-officio members, shall have the right to vote.
(B) Notwithstanding the provisions of Section 0.01 (B) above, the initial Board of Directors shall be comprised of one-third of such members serving a one-year term, one-third of such members serving a two-year term, and one-third of such members serving a three-year term. Which members serve which terms shall be determined by lot.
(C) Any member of the Board of Directors appointed by the Mayor may be removed by the Mayor for cause. Any member of the Board of Directors may be removed by the Mayor for violation of the rules, regulations or operating procedures adopted by the Board of Directors if the removal is recommended by a majority of the members of the Board of Directors. A vacancy shall be filled in the same manner as the original appointment for the unexpired term.
9. How long will the management district last?
KRS 97.762 Change of boundaries-Dissolution-Disposition of excess funds:
The management district shall be dissolved by the legislative body upon the receipt of a petition requesting dissolution that is signed by a number of real property owners who together are the owners of real property within the management district equal to at least fifty and one-tenth percent (50.1%) of the assessed value of the property owners within the management district, except that a management district shall not be dissolved if the district has any outstanding indebtedness.
10. What controls are in place so that the money will not go to other uses, and how might you have a say in who administers it?
Per the ordinance:
There is established pursuant to KRS 91.750 through 91.762 a management district to be known as the Downtown Lexington Management District (hereinafter referred to as “District”) for the purpose of providing and financing economic improvements that specially benefit property within the District. The boundaries of the District are designated by the map in attachment A which is incorporated by reference hereto and made a part of this chapter as if set out fully herein. It is understood that, pursuant to KRS 91.756 (5), the Urban County Council may not decrease the level of publicly funded services within the District unless such services are simultaneously decreased throughout Fayette County.
KRS 91.756 Ordinance—Requirements to be included
After the establishment of a management district, the legislative body shall not decrease the level of publicly funded services in the management district existing prior to the creation of the district or transfer the burden of providing the services, unless the services at the same time decreased throughout the city, consolidated local government, or urban county.
KRS 97.760 Memberships, Powers, and responsibilities of board
-The board of directors shall manage the fiscal affairs of the management district and shall adopt rules and regulations governing investment and disbursement of funds.
-All members of the board shall be property owners, representatives of property owners, or tenants within the district, except for specified ex officio members designated in the local ordinance. At least two-thirds(2/3) of the total number of board members, including ex officio members must be property owners or the representatives of property owners within the district. The board members shall be appointed by the executive authority of the city.
-Money derived from the assessments imposed pursuant KRS 91.750 to 91.762 shall be used only for economic improvements and the cost of administration of the management district and shall be used for no other purposes. As soon as practicable after the close of the fiscal year, the board of directors shall cause an audit to be performed of all funds of the management district by a certified public accountant.
11. As a property owner how will I be informed of where and what my money is being used for?
KRS 91.758 Economic Improvement plan – Annual Budget – Levy and collections of assessments –Appeal—Lien
(2) Upon approval of the annual budget, the board of directors shall publish both the economic improvement plan and the annual budget pursuant to KRS Chapter 424 and shall mail by first class to each affected property owner a description of the plan, the fair basis of assessment to be utilized, the estimated cost to the property owner, and the ratio that the cost to each property owner bears to the total cost of the economic improvements.
12. How will I know if the DLMD is successful once it has been established?
The DLMD will collect satisfaction surveys, compare data between pre-MD vs. post-MD for real estate improvements, vacancy rates, attendance at events, pedestrian counts, and conducting a community wide follow up survey from our 2008 survey.
13. Are there Management Districts in other cities?
Nationwide, there are more than 1,200 MDs, and they can be found in every state. Currently there is 1 in Kentucky, 7 in Ohio, 2 in Tennessee, 11 in Illinois, 3 in Missouri, 2 in Indiana and 10 in Virginia. Since 1999 there has been a 34% increase in the formation of MDs around the county.
14. Why is a strong Downtown important to our community?
“If new businesses, innovative businesses, and creative businesses are going to be fostered and encouraged, a community will need a downtown where that can take place.”
“If the community is going to compete in economic globalization without being swallowed by cultural globalization, downtown revitalization has to be central to the strategy.”
“If we are to have buildings with meaning, buildings with value, buildings with values, they will be downtown.”
“If we are to have public places of public expression, we need a downtown.”
“If we are to have an effective transportation policy, downtowns are important.”
“If we are to have meaningful historic preservation, downtowns are important.”
“If we want Smart Growth, downtowns are not only important but irreplaceable.”
“If a local official wants to claim the treasured mantle of fiscal responsibility, downtown revitalization is imperative.”
“If we want to avoid Generica, downtown is essential to establish differentiation.”
“If a community is going to embrace diversity instead of hide from it, celebrate diversity instead of deny it, then that has to take place downtown, it ain't gonna happen anywhere else...."
The Importance of Downtown in the 21st Century, Donovan Rypkema, Journal of the American Planning Association, Winter 2003, pg 14
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