June 2015

Lextran Real Properties, Inc

THE PROJECT

In June 2015, AMCREF Community Capital provided $5.1 million in Kentucky New Markets Development Program Tax Credits to Lexington Real Properties, Inc., an affiliate of The Transit Authority of Lexington-Fayette Urban County Government (Lextran).  Lextran plans to consolidate its operational and administration services into one location to include a new LEED silver certified 55,000 square foot corporate headquarters in addition to storage and service facilities for its fleet of 73 public buses.  The NMTC funds will be directed to the bus fuel/wash/service and parking/storage facilities.   The new facility will consolidate all operations into one location versus the multiple locations currently utilized, provide seven bus maintenance bays instead of the current two and will be equipped with a compressed natural gas (CNG) fueling station.  The Project is located in a severely distressed metro census tract within the city of Lexington, KY.  More than 40% of the census tract residents live in poverty and median family incomes are only 38% of the statewide median income. The Project will result in approximately 195 created/maintained FTEs at full capacity and provide more efficient public transportation services to almost 5 million riders per year, approximately 68% of whom have yearly household income of less than $20,000.  Additionally, the new facility and its lower operating costs will hasten the conversion of Lextran’s bus fleet from diesel to natural gas, reducing harmful emissions in the low income community.

 

COMMUNITY IMPACT

  • Job Creation: 195 direct FTEs created/maintained and 480 construction jobs. Lextran provides full benefits, training and pays average wages well above the local living wage.
  • Environmental Benefits: New facility is expected to be LEED Silver Certified and is located at a brownfield site. The efficiencies created by the new facility will facilitate an expedited scheduled of replacing Lextran’s outdated bus fleet with new CNG fueled buses and include a CNG fueling station accessible to the public. CNG is cheaper and cleaner and CNG powered buses have lower maintenance costs than its existing diesel buses. Annual fuel savings resulting from using CNG rather than diesel are estimated at $5,179 per bus.
  • Community Impacts: Lextran’s mission is to serve riders of need, including low-income persons (LIPs) and people with disabilities. Lextran completes about 15,000 trips per day and approximately 68% of passengers are LIPs. For large segment of the Fayette County population, Lextran is the only mode of transportation. The cost savings from the new project will allow Lextran to expand its existing routes, thereby expanding passengers’ access to employment, healthcare, and education, etc. Almost 60% of people who ride pubic transit are commuting to and from work.
  • Economic / Catalytic Effects: The project is strongly supported by regional economic development, and the location is included in the City of Lexington’s Central City Small Area Plan, which is intended to draw public improvement and steer private investments in order to promote neighborhood stabilization and revitalization. The new facility will help anchor further investment in the region.