A partnership announced today by Mayor Linda Gorton and William Sisson, president of Baptist Health Lexington, will bring a new medical campus, 600-700 new, good-paying jobs, a $1 billion construction project, and land for a new fire/emergency medical station to Lexington.
“It’s exciting to announce a huge construction project and plans for jobs … new jobs, good jobs, home-grown jobs … at a time when our economy is just starting to recover from the fallout from COVID-19,” Gorton said. “These are jobs with a future for hundreds of citizens. And for the City, this will create new revenue to continue to maintain a high quality of life that grows our economy and serves our citizens.”
Sisson said, “Our goal in the development of this ambulatory campus is to envision the healthcare delivery system of the future, while maintaining the caring and quality Baptist Health Lexington is known for. We are proud to be able to re-invest back into this community and region to support health and wellness.”
Earlier this month, the Urban County Council gave initial approval to the plan. Construction is expected to begin in 2020.
The new campus will be located in the Hamburg area, off Polo Club Boulevard. Long-term plans call for a multi-story hospital, a surgery center, 12 other buildings containing a combination of retail and medical office space and two parking garages.
In addition to the new jobs, for its part of the partnership, Baptist is giving the city three acres of land for the construction of a fire station. The land is valued at approximately $2 million.
Baptist will also provide annual flu shots to City employees for 20 years. Flu shots for city employees cost about $40,000 a year.
For a 20-year period beginning in 2023, the City is providing incentives for the new Baptist jobs, which are expected to pay about $89,000 a year. The total annual payroll is about $55 million a year.
In the first five years of the 20-year agreement, the City will rebate 1.25% of the new payroll taxes created by the new jobs. In years 6 to 20, the City will rebate 1.125% of the new payroll tax created.
“These are tax rebates on new jobs … jobs and tax money we would not have without this project,” Gorton said. Even with the rebate, the new jobs will create approximately over a $500,000 a year in new payroll taxes for the City.