Since it was announced that the City of Richmond would be joining the Kentucky Product Development Initiative, residents in several counties have expressed concerns about what the project is and why Madison County government is sending money to participate in the project.
But several members of the Richmond committee believe the regional project would bring many benefits to the local area.
“The city of Richmond has earmarked a $500,000 investment and we’re also expecting a $500,000 grant from the state,” said Tyler Glick, a communications consultant working with community partners.
The project is a state-run grant program focused on encouraging local governments to invest in economic development, specifically to attract businesses to buy real estate.
Glick said for every dollar donated, the city of Richmond will receive a matching amount from the state as part of the project.
“Madison County is participating in a regional joint application with partners including Scott County, the City of Georgetown, the Lexington-Fayette Metropolitan Government, the City of Berea and the City of Richmond to develop a business park in Scott County,” Glick said.
Glick likened investing in the project to investing in the stock market, a description echoed by Commissioner Tammy Cole, who voted in favor of the measure at the June 11 commission meeting, saying, “It’s like buying a stock.”
“This is no different than other financial investments that local governments frequently make – such as the stock market or certificates of deposit (CDs) – but this investment has the added benefit that it will be matched dollar for dollar by the state’s KPDI program and Richmond will also get a share of the business tax revenues and other revenues generated by the park,” he said.
A common objection from some people is that the $500,000 could be better used at an industrial park on Duncannon Lane in Richmond.
However, Cole said the existence of one option does not preclude the implementation of the other option or the possibility of implementing both options using some of the unappropriated funds in the budget.
Currently, according to the City of Richmond’s next fiscal year budget, the city has $65,062,700 in total appropriable funds and only $51,822,499 has been appropriated, meaning the city has $13,240,201 unappropriated.
“Through this program, Governor Beshear and the Department of Economic Development have encouraged communities to collaborate on applying for local projects. These collaborations enable Kentucky to compete with other states to attract quality businesses and provide high income potential for our employees,” Glick told the Register.
Glick and many others hope this will be a springboard for the future.
“We hope this is the start of a long-term partnership with multiple locations in other counties within the partnership. Through commuting patterns, we can see this is a true regional economy where everyone benefits from attracting additional economic activity to Central Kentucky,” he said.
According to the Governor’s office, the project is the latest in a long line of projects that have taken advantage of the KPDI grant program.
Both Glick and the governor’s office said the effort is being overseen by the state’s Department of Economic Development.
One example of a PDI project undertaken in the state is the Cincinnati/Northern Kentucky International Airport in Covington.
“The Boone County Fiscal Court will work with the Kenton County Airport Commission to develop CVG Site 7 at the Cincinnati/Northern Kentucky International Airport, an ideal location to attract and house future industrial and manufacturing businesses,” the governor’s office said in a June 27 email.
Earlier this year, the province approved a $3 million project to renovate Lanes Run Business Park, which will help enhance the business park.
Glick said the partnership is in better shape with the involvement of these counties in the Bluegrass region.
“The regional nature of this partnership puts it in a stronger position to receive additional state and federal grant funding to contribute to the project,” Glick said.
Glick and those backing the project hope this will be the start of a long-term partnership that will add multiple sites in other counties within the partnership.
The comments echoed those made by Scott County Judge Joe Pat Covington in March, who said the partnership could be a “twin” of the Scott County project here in Madison County.
