Council approves Hailey Pike solar lease after amendment tying community benefit review to IRB; 10-3 vote

The Lexington-Fayette Urban County Council on March 26 approved a resolution to lease approximately 357 acres of the Hailey Pike landfill for a photovoltaic solar project, but added language requiring the community benefits agreement to return to the council for approval in conjunction with any industrial revenue bond.

The vote followed a lengthy period of public comment from members of the Lexington Model Airplane Club (LMAC), education partners and industry representatives who urged the council to preserve the club’s FAA‑recognized flying field or to require a funded, permanent relocation plan if the project proceeds. Council passed the amended resolution on a roll call, 10 in favor to 3 opposed, with two absences.

Why it matters: The amendment responds to strong community concern that construction could proceed before the council ever reviews or approves the CBA — the document that would identify direct benefits and mitigation steps for the community. Developers said delaying the start of certain project activities could imperil their financing and investment‑tax‑credit timelines; supporters of the club warned that losing the site could cost millions and could not be easily replaced.

CAO Sally Hamilton summarized staff outreach and constraints. She said she and staff met with the developer, Edelon Renewables, and with the model airplane club and that the developer told staff it "needed that 54 acres" both to make the project "financially feasible" and "structurally feasible because there's like a power station that hooks up right there in that area." Hamilton added staff had explored alternative sites and estimated that preparing an alternative at the West Hickman treatment plant — including grading and electric service — would be “in that ballpark of $600,000.”

Club members and partners pressed a different calculus. Michael Brunig, LMAC president, said the club has "served this community for decades" and described repeated outreach to council and staff. He urged the council to "reconsider" and "recognize that value and choose a path that preserves it." Several speakers — including a retired FAA inspector — cautioned that the club’s FAA remote‑ID ‘free’ status is difficult to replicate and that relocating the field risks losing that federal designation.

Developer and financing concerns: Representatives for the developer said the project must demonstrate it is "under construction" before federal safe‑harbor deadlines to qualify for certain tax credits and financing. A developer representative told council the amendment as originally written (tying CBA approval to a broad definition of construction) "would kill the project," because postponing all on‑site activity would make financing impossible. David Apcher, identified as chief development officer for the renewables team, said some preparatory on‑site work would be required to meet federal definitions of being under construction and that the project team did not intend to install panels or order long‑lead equipment until the council and taxing authorities had finalized required approvals.

Council response and compromise: Council members debated compromise language. Councilmember Morton proposed that no construction commence until the CBA was approved by council; councilmembers Brown and Sheehan worked on alternative language to limit the restriction to panel installation or to tie CBA approval to the IRB review. Ultimately the council approved an amendment that requires the community benefits agreement referenced in the lease to return to council for separate approval coinciding with the industrial revenue bond and pilot (payment‑in‑lieu) package, while allowing the developer to complete certain early steps necessary to meet federal definitions of being "under construction." Councilmember Brown framed the amendment as ensuring the council would get a joined package (IRB + CBA) to evaluate the economic and community tradeoffs together.

Vote and next steps: The amended resolution passed by roll call, 10–3 with two absences. The resolution authorizes the mayor or designee to execute the ground lease and related documents (except the CBA), and specifies the CBA must return for council approval at the same time as the industrial revenue bond package. Council and the developer said they expect the IRB and CBA package to return to council this summer. If the developer proceeds, the city attorney and the developer indicated they could include safeguards to pause demolition of existing club infrastructure until design and permitting milestones are satisfied.

The council’s action resolves a major threshold question of land control for the Hailey Pike project while preserving council oversight of the community benefits package and related tax‑abatement instruments.

Provenance: Council debate and amendment from the reading of the resolution through vote (topic intro SEG 2460; topic finish SEG 3391).