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| This map was published in March 2019, when the city annexed the property that EDA had an option to buy. |
University of Kentucky School of Journalism and Media
The Woodford County Economic Development Authority board spent much of its Friday meeting discussing the best way to replace longtime chairman and executive John Soper.
The board also began the process of turning over the green space around the edge of Midway Station, awarded a contract for marketing the industrial and commercial park, and discussed relations with the adjoining landowner who has been its main collaborator recently.
Adjoining property: The EDA had an option to buy 104 acres next to Midway Station from Michael Freeny, but Soper said Freeny doesn't want to renew the option until he has a better idea of its worth.
Soper noted that the property hadn't been annexed and zoned industrial when EDA obtained the option in 2017, and that Freeny has since sold part of it to Lakeshore Learning Materials for its second building. He said Freeny wants to know the cost of building a road through a narrow strip that connects the two sections of the property and would provide access to South Elkhorn Creek.
"I expect that road will cost every bit as much as what he paid for that lot or more," because it will have to be built to city specifications so the city can accept it for maintenance, Soper said. "As far as I know Mr. Freeny is still willing to honor his commitment for access though that property to the creek," which the city wants for recreational purposes. He also said that Freeny knows EDA and the city are his conduits to state economic-development officials.
Midway board member Michael Michalsin said he expects "good dialogue" with Freeny because "He's very easy to work with. . . . I'm happy to stay in close touch to him as is useful for the board."
Transition: Soper, who's been on the board for about 20 years and has been its paid chairman for the last few, will be stepping down after his term ends June 30, leaving the EDA in need of a game plan for leadership.
The board agreed that the "most desirable option" would be to hire a full-time director, but concluded from research that option would likely be beyond its budget. Soper gets $60,000 a year, funded pro-rata by Midway, Versailles and Woodford County.
The board is considering four other options, according to a document distributed by Treasurer Maria Bohanan after the meeting:
● Part-time independent contractor (hired by the three governments, with duties directed by them): This option would “more than likely” be less than the cost of Soper’s contract but raises concerns about the contractor not being readily available as a full-time employee would, and that there could be potential for conflicts of interest.
● Full-time independent contractor (hired by the governments, with duties directed by them): This option offers more consistency in the EDA's messaging and relationship-building, and would establish a “go-to person for all stakeholders in the community, including planning and zoning,” but may be too expensive and could lead to a difficult recruitment and evaluation process. The document also questions whether a full-time person is needed, since a real-estate agent has been hired, but a big “variable” is possible development of the Edgewood property at Versailles, which is tied up in court.
● Third-party entity (hire a firm to handle EDA's needs): This option offers “administrative staff and a strong Rolodex,” would probably cost less than Soper’s contract, and could attract competitive bids from firms “likely eager for business in this environment,” the document says.
● Creating a position as a public employee: This option could make it easier to provide direction but “is problematic due to which entity and whom the individual would answer to,”and would require extra taxpayer funding for retirement benefits and health insurance.
In another element of the transition, the board discussed Soper’s suggestion that the treasurer receive some compensation, which could require a change in the EDA by-laws, which say members will serve without compensation except expense reimbursements but say the “secretary-treasurer,” a position that is now split, can be paid.
The board directed Bohanan to include in the budget for the upcoming fiscal year $4,500 for compensation of the treasurer and/or secretary and a Dropbox subscription to facilitate electronic communication. Soper said he would ask attorney Bill Moore about the need for a by-laws change.
Midway Station agent: The board approved SVN/Stone Commercial Real Estate Advisors to serve as its agent for Midway Station, part of the transition from Soper’s impending departure.
The board and Matt Stone of SVN agreed that selling land in Midway Station is not just about creating jobs but maintaining Midway's character.
Soper said, "The EDA is about jobs and about representing what the taxpayers want, and it's not just about selling land." Stone responded that SVN is not about "pushing a deal through to get some sales done."
Stone said SVN will boost Midway Station’s web presence and advertising, with aerial photos. He said that unlike many commercial firms, it splits commissions with agents for buyers, meaning “We’re employing the entire brokerage community, locally and nationally.”
Asked by Soper how Midway Station’s $65,000-an-acre price compares with other ready-to-use industrial property in the region, he said “It works very well” because the range is $35,000 to $85,000, “but in Lexington you’re dealing with prices that are six figures.” He said he has seen transactions of $75,000 to $85,000 in Georgetown, which some buyers prefer because it is on Interstate 75. “I think we compare well to Georgetown.”
Land transactions: The board authorized Moore to prepare a deed to the City of Midway for the Midway Station tract on which the city’s functioning water tower stands, and to prepare an option for the city to take ownership the 38 acres of greenspace that surround Midway Station, in return for the city agreeing to forgive $500,000 to $750,000 of debt owed by the EDA, not all of which is considered collectible. Both moves have been anticipated for many months.
The EDA also owes the county money, and Magistrate Mary Ann Gill asked if there would be “any effort to compensate Woodford County.” Soper said, “If there was money there, I think that we could,” but “If we can get out of this with paying off the debt … and putting the finishing cap of surface on those roads … I cannot conceive that there’s any cheese left in this trap.”
Midway Mayor Grayson Vandegrift reminded Gill that the county did not participate in the $450,000 financing of a larger natural-gas line for Midway Station, which constitutes most of the debt and “really improved the park’s chance of selling land.”
Soper said the legal instrument from EDA to the city needs to be an option, not a deed, because releasing the mortgage on that part of the property without any direct monetary compensation might be a problem for the banks that hold the mortgages. He said that would “give Midway control of the land without going to the bank and asking them to release it … until after land sale,” which he said would be “A better time to release without any consideration.”
Soper said the city’s “intent to make some or all of it a park” will enhance the value of Midway Station. Vandegrift said it won’t be a park as such, “but a greenspace. Midway is such a picturesque city, we want our industrial park to be as picturesque as an industrial park can be.”
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