City Buys Tyson Utility Assets, Land

LINCOLN, Neb. (DTN) -- City officials in Lexington, Nebraska, this week ratified the purchase of property from the now-closed Tyson Foods beef processing plant, although Tyson continues to own the plant itself.

The terms of the deal have not been publicly disclosed.

The Lexington City Council this week approved a resolution to buy a wastewater treatment plant, sewer lines, easements and related personal property associated with the system, according to the resolution. The resolution also authorizes the city manager to transfer all environmental permits associated with the wastewater treatment plant.

In addition, the city is buying about 160 acres that includes a drainage ditch area and part of a county road.

Tyson announced the closing of the 5,000-head-per-day plant in November 2025, and 3,000 people lost their jobs at a facility that accounted for about 4.8% of the daily U.S. beef slaughter.

Although the terms of the city's purchase have not been publicly released, the information eventually will become public record under the Nebraska Open Meetings Act and when the property deeds are legally transferred to the city.

The city of Lexington in April 2026 agreed to purchase Tyson properties surrounding the former plant.

The decision came after an April 28, 2026, public city council hearing during which local media reports said at least 100 people attended.

The day after the public hearing, the city issued a news release in response to questions about the purchase.

The city said the purchase was Tyson Foods' collaborating with the city on "strategic initiatives" aimed at attracting private investment, fostering job creation and driving long-term economic development.

"Together, Tyson and the City are working to position key assets for redevelopment and economic opportunity," according to the news release.

"Under this collaborative framework, the City of Lexington will acquire and manage certain Tyson-owned assets to facilitate future development aligned with state and regional growth objectives. The proposed transaction includes the transfer of Tyson's wastewater treatment facility and ancillary farmland to the city. In addition, both parties will continue to collaborate in identifying potential redevelopment pathways and end users for the processing plant."

Since the Tyson announcement, federal lawmakers from Nebraska, the state's governor and the city of Lexington have started the pursuit of other potential uses for the plant facility.

In September 2026, U.S. Sen. Pete Ricketts, R-Neb., announced during the Nebraska State Fair in Grand Island that his staff was working with Tyson officials and Lexington city leaders to identify a new employer for the site, including potentially a dairy processor.

Just ahead of the plant's closure in January 2026, Nebraska Republican Gov. Jim Pillen said Tyson officials were considering other potential uses for the plant, including converting it into a case-ready meat packing plant that would prepare finely butchered, pre-packaged meats directly for grocery store shelves.

In August 2026, the city of Lexington passed a city ordinance that created the Lexington NewTrack Industrial Campus, designed to recruit private manufacturers and industrial companies.

Read more on DTN:

"Nebraska Beef Plant to Close," https://www.dtnpf.com/…

"Beef Plant Closing Impacts Industry," https://www.dtnpf.com/…

Todd Neeley can be reached at todd.neeley@dtn.com

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