In 1971, outgoing Governor Nunn handpicked Tom Emberton to be the Republican candidate for governor and Host to run for lieutenant governor. At that time, the two offices were elected separately, so the two men were not on the same ticket. Emberton lost to Democrat Wendell Ford, and Host lost to Democrat Julian Carroll. After his defeat, Host decided to return to the private sector and established Jim Host & Associates. The Lexington Tourist and Convention Commission also hired him to serve as its executive director and tasked him with obtaining an urban renewal grant for downtown Lexington that would include the construction of a convention center, arena, hotel, and retail shopping mall. Host became the executive director of the Lexington Center Board, which developed plans for the new complex. He convinced University of Kentucky president Otis Singletary to move UK basketball games downtown to the new arena, oversaw the bidding process to construct the site, convinced Hyatt to build a hotel at the location, and oversaw the building of Rupp Arena, the mall, and the Heritage Hall convention center.