Lexington City Council approves economic development grant for potential $25 million investment
Sharon Myers
The Lexington City Council approved an economic grant for a manufacturing company that plans to invest $25 million in the area and create more jobs.
Following a public hearing, the Lexington City Council approved a $83,850 economic development grant for Project Yacht. The unidentified company plans to invest $25.8 million over the next three years and create at least 50 jobs.
According to the economic development grant agreement, the company will make $800,000 in upgrades and improvements to a property housing its manufacturing facility, and the rest of the investment will be for equipment and machinery.
“This incentive grant would stimulate the local economy but also accommodate our desire for economic growth and increase our tax base and revenues and result in the creation of new full-time jobs in the city and promote the welfare of the city and its residents,” said Lexington City Manager Johnnie Taylor.
When asked Taylor said he was not at liberty to disclose any further information but stated the manufacturing company provides materials for other manufacturing companies.
It is customary for companies to be identified under a project name to maintain confidentiality and anonymity for the potential businesses to protect sensitive information until they finalize their plans and make a public announcement.
City and county governments often offer economic development incentives, or grants, to entice companies to locate to their communities. The city of Lexington will make these grant payments in payments over a three-year period.
The grant payments for Project Yacht are $41,275 in 2026; $26,000 in 2027 and $16,575 in 2028.
Taylor said the yearly grant payments would only occur if the company met investment, job creation and other requirements as specified in the economic grant development agreement.
Prior to the adoption of the agenda, the city council removed a public hearing for another proposed economic development grant titled Project Blue Thunder. There was no date determined for when the public hearing for this economic grant would be rescheduled.
If approved, the economic development grant for Project Blue Thunder would be for $82,063 to be paid over three years. The company has stated it would invest a minimum of $25.2 million and create at least 63 full-time jobs in Lexington, according to the grant application.
