Blue Grass Stockyards, which suffered a devastating fire Jan. 30 at its Forbes Road property near downtown Lexington, is rising from the ashes north of the city as it builds a new, improved $11.9 million facility in northern Fayette County off Ironworks Pike and Interstate Highway 75.
“This is a special day for all of us, a day that is the culmination of a lot of hard work and tough decisions and emotions over time,” Jim Akers, chief operating officer for the stockyards, said at the recent groundbreaking ceremony. “We undertook the cleanup from the fi re at the site downtown as an opportunity to show the community our commitment to how we would operate in the future and what kind of people and company we are.”
Akers said contractors have a very aggressive construction schedule for the new facility but did not offer a completion date. He said farmers need to get the new stockyards open since they are currently splitting up their sales efforts at locations throughout the region.
The fire, which officials later determined was sparked accidentally during work on a roof, consumed seven acres of the 70-year old company’s old property and took everything 120 firefighters and personnel could muster to extinguish it. There were no injuries.
From the start stockyard and government officials said they were committed to keeping the $600 million a year business in Fayette County. In February, the Kentucky Economic Development Finance Authority approved $540,000 in tax incentives, which was based on Blue Grass Stockyards investing $11.9 million in a new facility. The report said the stockyards was to create 20 jobs paying $20 an hour, including benefits.
Lexington Mayor Jim Gray and others say Blue Grass Stockyards is the largest cattle market east of the Mississippi River. Because of its volume, it essentially sets the sales prices for other markets in much of the eastern United States.
“Everyone was determined to make this happen, and that’s why we’re here today,” said Gray. “In the end, sound decisions were made, the right facility, high-tech, in the right place to best serve the farmers, near the interstate.”
Emphasizing the importance of the industry, the state Department of Agriculture estimates that there is one cow for every four people living in the commonwealth. The stockyards serve not just Fayette County but also the entire region. In 2015, 106,000 animals were sold at the Lexington market as well as another 50,000 sold online. Last year, farmers received about $200 million in the sale of their livestock.
“The community has been a strong supporter of the stockyards, and many partners in Lexington and the region have been involved to make this day a reality,” said Bob Quick, president and CEO of Commerce Lexington, which considered that effort to be a major business retention project.
The stockyards’ owners briefly considered whether to rebuild on the old site, which is located not far from downtown Lexington, but decided the stockyards needed to be outside the city core with easier highway access. In the early 2000s, the stockyards’ owners had considered moving to the Ironworks Pike property site but postponed their plans.
Overall, the new facility will have a slightly smaller footprint. The cattle arena and adjacent spaces will total about 190,000 square feet. The front end of the facility will be about 40,000 square feet and offer retail, leasing and other business opportunities. Akers called it a one-stop service center.
Special events and educational and demonstration activities are expected to be held there for school children and college students. Food services and a marketplace will be offered onsite. Akers noted the renewed importance on local food and the farm-to-table movement. He also wants a strong Kentucky Proud influence on the property. In addition, the stockyards operators are asking the community to come up with historic artifacts from the old stockyards’ to display in a small museum at the new site.
Akers also mentioned the stockyards’ close ties to the equine industry and its new proximity to the Kentucky Horse Park and the possibility that Lexington might again host the World Equestrian Games.
“The commitment that is in place from our owners to make a move like this, to re-establish a business of this size in Fayette County shows how much confidence in the cattle and livestock industries they’re putting out there,” said Akers. “It’s been very rewarding to have the loyalty of our customers and for them to stick with us. We know we need to be here.”