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Lexington City Council last Thursday unanimously voted to move forward with selling the city-owned property at 626 Waddell St., which previously belonged to the Virginia Department of Transportation, to Echelon Resources Inc. for development.
Council also approved amendments to the development agreement for the Spotswood property to align the development periods for both properties so Echelon can plan them as one large project.
The city put out a request for proposals for the Waddell Street property in January. While several developers expressed interest, Echelon and its partner UrbanCore were the only ones to submit a proposal to the city.
The developers met with the Lexington City Council in a work session in June to present a preliminary design for the site and to answer questions. The preliminary design at that point was for two four-story buildings with a combined total of just under 200 one- and two-bedroom apartments.
They also plan to have the property rezoned under the city’s new Planned Development- Mixed Use zoning ordinance and use a minimum of 3,000 square feet in one of the buildings fronting Waddell Street for retail space.
Most of the apartments will be market-rate apartments, but 20 percent of the units will be set aside for individuals making 80 percent or less of Lexington’s Area Median Income. In 2022, the AMI in Lexington for a two-person household was $43,800 according to the U.S. Department of Housing and Urban Development.
“I think this project checks a lot of boxes,” said Council member Nicholas Betts. “It’ll have 20 percent of units set aside for 80 percent AMI, so that will help address affordable housing. Additionally, it will add more units to the city which should help stabilize rent prices in years to come. It will generate tax revenue and help us broaden our tax base. I think this is a good project.”
“We’ve been talking about this since I can remember, getting VDOT developed as an asset to the city. It’s been a curvy and bumpy road, but we’ve made it. It’s not quite a finish line, but it’s a good benchmark in the road,” added Council member Chuck Smith.
Council member Leslie Straughan made the motion to move forward with the sale and Vice Mayor Marilyn Alexander provided the second.
Council also voted on amendments to the purchase agreement for the Spotswood property that Echelon plans to develop, specifically to bring the end of the study period for that property in line with the end of the study period for the VDOT property. The goal is for Echelon to develop both properties in tandem as one large project. The new deadline for both properties will be 18 months after the sale of the VDOT property to Echelon. The Spotswood property was sold to Echelon on July 11, 2022, with the study period ending on Jan. 11, 2024.
Additionally, instead of waiving the water and sewer fees for the Spotswood property, Echelon would pay the fees, which would then be reimbursed as a grant from the city’s Industrial Development Authority.
Council member David Sigler made that motion, with Betts providing the second.
