Business Coalition Raises Concerns About City of Lexington's HB 443 Zoning Ordinance Text Amendment

A coalition of business associations has raised concerns about the current 50-plus page draft of the HB 443 Zoning Ordinance Text Amendment (PLN-ZOTA-25-00001).  The proposal far exceeds the legislative intent of HB 443, enacted during the 2024 Regular Session of the Kentucky General Assembly.  HB 443 aimed to streamline local development processes by removing subjective standards, thereby simplifying compliance for employers and developers.
 
Rather than enhancing efficiency, the HB 443 ZOTA imposes new regulations that increase costs, add bureaucratic obstacles, and hinder economic progress. These changes threaten to delay infill business development projects, stifle job creation, and potentially limit residents’ access to essential services like banks and pharmacies — outcomes that harm businesses, developers, and the broader community.

Lexington’s existing 360+ page regulatory framework already poses significant challenges. A 2023 Planning and Development Approval Process Study revealed that it takes over twice as long to navigate the development process here compared to the national average. For example, subdivision plan approvals in Lexington average 523 days, while our peer city, Greenville, S.C., completes the same process in just 45 days. Far from addressing these inefficiencies, the HB 443 ZOTA exacerbates delays and extends timelines.
 
The Coalition is particularly concerned about the following provisions:

• New regulatory requirements for commercial access standards, vehicular use areas, pedestrian facilities, bike parking, private roads, and parking lots (Article 16).
• Revised standards for waivers, including eligibility, filing requirements, and notice obligations, while explicitly excluding development cost considerations (Article 21).
• Stricter regulations on drive-up windows and drive-thru facilities, jeopardizing their feasibility (Article 16).
• Additional restrictions targeting larger retail businesses (Article 12, Sec. 12-9).
• Increased procedural and approval requirements for development plans (Article 21).

 
The coalition has urged the Planning Commission to revise the HB 443 ZOTA, limiting it to non-controversial policy updates that align with HB 443’s intent to improve efficiency. We support starting with the attached 11-page ZOTA, which achieves the intent of HB 443. Major regulatory changes, such as those listed above, warrant separate consideration by the Planning Commission and Urban County Council, with robust input from the business and development community to assess impacts and prevent unintended consequences.

Fayette County residents who are concerned about this proposed ordinance should contact the Planning Commission members at [email protected] or their Urban County Councilmember.