A slate of high-ranking state and local officials gathered Dec. 3 to break ground on The Railyard, a new $7.5 million residential and retail development located at 1000 Delaware Ave.
The project is spearheaded by developer Will Hanrahan, a former corporate marketing professional, and financer Paul Metzler. The development will transform a one-acre brownfield site — previously home to a railway maintenance station and stone cutting facility — into a mixed-use complex. Plans call for three buildings housing 32 rental units and two 1,500-foot retail spaces.
Addressing the city’s need for workforce housing, 12 of the residential units will be income-restricted for residents earning 80 percent or lower of the area median income.
The groundbreaking drew a significant crowd of policymakers, including Lt. Gov. Jacqueline Coleman, Rocky Adkins, Mayor Linda Gorton, Vice Mayor Dan Wu, and several council members. Commerce Lexington CEO Bob Quick noted that the project represents the type of infill and infrastructure usage that the business community and city leaders have prioritized to aid recruitment and retention.
The project utilized a capital stack that relies heavily on public-private partnership. The city contributed approximately $1.6 million in public funding, including grants from the public infrastructure and stormwater quality funds. Additionally, the project secured two loans from Lexington’s affordable housing fund — an $800,000 forgivable loan with no interest and a $200,000 low-interest loan — which subsidize the cost of the affordable units. The Kentucky Brownfield Program also contributed resources to assess the site’s suitability for construction.
The Railyard is the latest investment in the Delaware Avenue corridor, which sits adjacent to the popular National Avenue and Kenwick areas. The project is slated for completion in late 2026.