Closely watched Lexington beer garden project now called off. Why Navy Yard won’t open
After months of fighting to open — and winning a court battle with a church — it appears the Navy Yard on Main Biergarten and Restaurant won’t happen in downtown Lexington, after all.
Gavin Smith, who was part of the Vision Ventures group that was planning the beer garden and eatery, said Monday morning that the group has “permanently suspended” the project. The Navy Yard on Main concept was initially announced in February 2021 and had been targeting an opening date this year.
But Smith said a number of obstacles, including inflation, have brought an end to the Navy Yard plans.
“What has led us to this point is that there is a near 35% increase in the overall costs of our project,” Smith told The State Monday. “When you pair that with record inflation, unprecedented supply chain shortages and economic indicators that are signaling a potential recession in the near future, the project has become financially unviable.”
Smith also added the project had been looking at a “six to seven month wait” on being able to get certain equipment.
Efforts to develop the Navy Yard on Main faced hurdles since nearly the moment the project was announced.
St. Stephen’s Lutheran Church, which is right next door to the where the beer garden would have been, filed a protest in 2021 to the Navy Yard’s applications to sell alcohol. An at-times bitter standoff ensued, and the two parties ended up arguing the matter in state administrative law court.
Judge Shirley Robinson eventually ruled the beer garden could get its alcohol licenses. The church appealed that decision, but the the two sides had agreed to a settlement that would have allowed the beer garden to move forward.
Smith said the protest process was hard, but his group eventually had good conversations with the church.
“It was a very trying time for us,” Smith said of the alcohol license battle with the church. “It was a very difficult process for both parties. But through it all, we were able to come to common grounds, and we have built a positive relationship with the church to date. We wish them many successes in the future.”
Plans for the Navy Yard had called for 11,000 square feet of outdoor dining space and around 8,000 square feet of indoor dining, and the ownership group had said they hoped to have the town’s largest selection of craft beer.
While he was disappointed that his group is walking away from the Main Street beer garden plan, Smith said he appreciates the excitement many in the community had shown about the project.
“We are just immeasurably grateful to the community for all the support they gave us,” Smith said. “This has been a very difficult decision for us to make and even harder for us to share. But we love and respect our community enough to be honest with them. At this point it has just become a financially unviable project for us, and it is time for us to walk away.”
The property at 102 Main St. in Lexington is back on the market for lease, according to a listing from commercial real estate firm Trinity Partners.
The ending of the Navy Yard plans is a rare setback for a downtown Lexington area that has been on fire. A number of restaurants and bars — such as Alodia’s, Nicky’s Pizza, Craft Axe Throwing and Keg Cowboy — have set up shop along the corridor, and the nearby Icehouse Amphitheater has been a hub for concerts, movies, festivals and other activities. The town of Lexington also recently broke ground on the Icehouse on Main, a facility that will have restaurant, retail and office space.
This story was originally published April 18, 2022 at 10:34 AM.
