EDA to develop strategy for marketing commercial land at interchange; City Council to take up greenspace deal

Zoning map adapted by Midway Messenger shows most of Midway Station; for a larger version, click on it.

With all the industrial-zoned land in Midway Station under some sort of formal process leading to sales, the Woodford County Economic Development Authority will be focusing on how to market the commercially zoned land along Georgetown Road and Interstate 64.

The "sticker price" for the tracts zoned B-5, highway interchange service, is $2 million, so it's "a big deal," EDA Chair Michael Michalisin said. "That's our next real item we need to address . . . how to make that more salable." Sales are needed to retire the debt on the property.

Michalisin said board member Paul Schieffler had suggested that EDA needs to develop a marketing strategy for the property, and would "take a leadership role moving forward" on the topic.

Midway Mayor Grayson Vandegrift said the City Council would discuss on Sept. 8 acceptance of a deed from EDA giving it 38 acres, more or less, along I-64. The land, which is not platted for development, has been intended to remain a greenspace buffer.

Vandegrift reported that county Planning Director Pattie Wilson recently found 1991 City Council minutes that say the city was supposed to get "a scenic and conservation easement around the perimeter of the property prohibiting construction within 150 feet of I-64," plus additional easements to total 39 acres.

The mayor and EDA have agreed that the city would get ownership of the property in return for forgiving $500,000 to $750,000 of the debt owed to it by the EDA, most of which is for the natural-gas line built to serve Lakeshore Learning Materials, but not all of which is considered collectible. Vandegrift said he intends to ask the council to vote on the deal Sept. 21.

Wilson reported that Creech Inc. has filed a revised development plan for the lot it is planning to buy for a horse-muck processing facility, in time for the Planning Commission meeting at 6:30 p.m. Sept. 10, and will submit site construction plans Sept. 8. Tom Creech told the board, "I'm ready to go."

Lucas Witt, EDA's new acting executive director, said he met with Barnhill Chimney, which has optioned 2.49 acres for a facility to manufacture chimney caps but has been off and on about going through with it. Witt said the company "fully intends to exercise the option," but hasn't said when. Michalsin said the company has been making its option payments and would bring "a fair amount of jobs . . . I think it's in the dozens." Barnhill has been quoted as saying that it plans to have seven to 10 employees at opening, 10 to 15 in a year and could have 30 in five years.

In the public comment period, Vandegrift said making the transition from former Chair John Soper, who had also been executive director, was "a tough task" but "everybody really did a good job pulling together." He added, "This was a time we couldn't lose steam, and we haven't. I'm as optimistic as ever about Midway Station's outcome."

EDA board lines up sales of four large Midway Station lots that are supposed to produce 70 new jobs

Lots 24, 25, 26 and 27 were prepared for sale by EDA at its meeting Tuesday. (For a larger image, click on it.)

Seventy more jobs would come to Midway Station under instruments approved Tuesday by the board of the Woodford County Economic Development Authority. 

The EDA board approved a letter of intent to sell two lots to CSI, which makes auto parts robotics for the auto industry, and a purchase contract for two with Dever Inc., which sells and rents golf-cart fleets.

"CSI is a hi-tech manufacturer for the automobile industry which will bring 40 high-paying jobs and will take Lots 24 and 25," Mayor Grayson Vandegrift said in an email to the City Council after the meeting. He said Dever will buy Lots 26 and 27 and "bring roughly 30 more jobs to town."

EDA Chair Michael Michalisin of Midway said the sales, after real-estate commissions, would generate $845,000, about $688,000 of which would go toward reducing the mortgage on the industrial and commercial park, with EDA keeping the remaining $157,000.

Vandegrift said the sales would reduce the debt on the property by about a third. "This is a big day for a number of reasons," he wrote. "This marks the beginning of a shift to a new phase, as these are the last remaining industrial lots in Midway Station not currently under contract."

Lot 30 is under option with Barnhill Chimney, and Lots 29 and 31 are in the process of being sold to Creech Inc., which collects muck from horse farms and ships it to mushroom farms in Tennessee.

Vandegrift noted that 130 acres of north of Midway Station is zoned industrial, "but this is a very nice turning point for the history of our industrial park. Both of these new companies are relocating from Lexington, and while they are not done deals just yet, they’re moving along very quickly and I am confident they will both get across the finish line. We could all use good news right now, and I’m very excited about both of these new companies."

Council discusses school, OKs short-term economic developer, hears fire department has its first ladder truck

Northside Elementary School is scheduled to welcome students Aug, 26. (File photo by Megan Parsons, 2019)

This story has been updated.

By Aaron Gershon
University of Kentucky School of Journalism and Media

The Midway City Council and Mayor Grayson Vandegrift spent much of their meeting Monday sharing their thoughts on re-opening schools amid the covid-19 pandemic.

The council also approved a short-term contract for an economic developer, passed an ordinance easing paperwork rules for volunteer work on city property, made one block of Johnson Street one-way, and heard that Vandegrift bought a used ladder truck for the fire department.

The Woodford County Board of Education is planning to resume classes Aug. 26 with a dual option, in which parents can send children to school or have them do virtual learning, online at home. The board will have a special meeting Tuesday, Aug. 11.

“We want kids to go back to school at some point,” Vandegrift said. “My main concern, though, is if you go back in and we’re not ready to control the spread, if there are four to five kids a week testing positive for coronavirus and we can’t truly test for it the spread is going to continue.”

Vandegrift’s estimate was based on research that uses county infection rates to estimate the number of infected people likely to arrive at a school of 500 in the first week.

The mayor called for delaying the in-person start date, saying said more testing is needed first, to allow tracing the contacts of infected people and asking them to quarantine.

“I think the board should seriously consider delaying an open that allows students to enter the school until we can guarantee more testing,” he said. “I’m not putting that on Woodford County; the health department has done an unbelievable job, but everywhere this thing spreads, you can’t tell where it’s coming or going, and that’s because of testing.”

Council Member Sara Hicks raised concerns about parents who have health risks but face losing their jobs if their children do not go back to school: “If you say you can your kids or not send your kids, it sounds like that’s just a free decision, but I don’t think that’s really a free decision for people who don’t have the financial wherewithal to put their jobs in jeopardy.”

Council Member Stacy Thurman didn't opine about opening but said the school board should get support no matter what decision it makes: “We need unity, we need a united front and we need solidarity with the board and the county.”

“There’s no good solution,” said Thurman, mother of a fourth grader and an eighth grader. “Both solutions are bad and inconvenient and hard.”

Council Member Logan Nance agreed, saying “The bigger risk than covid to our community is the divisiveness and the language we’re using to talk to one another.” He also didn’t give the school board any advice, and no other council members spoke on the topic.

The City Council usually does not involve itself in school matters, “but this is an unprecedented situation,” Vandegrift said, and the final call will be “the most important decision that board has made in a long time, if not ever.” 

The mayor said at the start of the discussion, “We don’t in any way ever want to step on another board or jurisdiction’s toes,” adding later, “I think it well help them to have an idea how our city, our constituency, our end of the county feels about this.” At the end of the discussion, he said Midway-area school-board member Ambrose Wilson posted his thanks on the Facebook page that carried the meeting.

Other business: The council unanimously approved a six-month contract with Fortune Solutions LLC and point person Lucas Whitt to staff the Woodford County Economic Development Authority for six months, filling the role played by retired EDA chair John Soper.

Whitt worked with Midway on the location of Lakeshore Learning Materials when he worked with the state Economic Development Cabinet, Vandegrift said: "He's well aware of what is going on in Midway Station." The city will pay him $1,050 a month; Soper was paid $1,333.

Most of the pay will come from Versailles and the county government; Vandegrift said he, Mayor Brian Traugott and Judge-Executive James Kay agreed on the temporary hire to give them time to develop “a more concrete, more comprehensive” request for proposals from potential long-term hires.

The council defeated, with lack of a motion, Council Member John Holloway's proposal to rename and replace “Sparks in the Park,” normally held on July 3 or 4, with a celebration on June 19 to honor Juneteenth, a now official city holiday, to honor the end of slavery.

Vandegrift said he had discussed with Holloway “what could be done,” and asked for a motion, but none came. He said Sparks in the Park would continue but “We are going to have a Juneteenth celebration next year on June 19, which happens to fall on a Saturday.”

Interviews after the meeting, via email, indicated that the opposition stemmed from the idea of doing away with Sparks in the Park.

"I'm really excited to work with members of the black community here in Midway to honor and celebrate Juneteenth as they see fit. I also didn't want to do away with Sparks in the Park," Nance said. "It's a fun event for families and members of the community to come together and socialize and celebrate Independence Day. I know John's heart was in the right place when he wrote the resolution, but instead of repurposing Sparks in the Park I would rather keep that tradition and create a new, special tradition to honor Juneteenth."

Thurman said, "I appreciate the thought process behind this resolution and feel that Midway should definitely commemorate Juneteenth next year. I didn't make a motion to accept this resolution simply because I think both of these events provide great opportunities to bring our community together and I don't think we have to substitute one for the other."

Hicks said, “I believe Sparks is a loved tradition that should not be eliminated. I am also happy to add another celebration of Juneteenth. There are many reasons to celebrate in Midway.”

Holloway said, "Maybe I'm a purist, but it seems like a Fourth of July celebration should be on the Fourth of July. Juneteenth is 15 days before Sparks in the Park, and it seems strange to have two events that close together.  I was afraid that even if we actually have a Juneteenth celebration (which frankly seems unlikely), the tendency would be for it to become a lesser stepchild – which to me smacks of separate but equal, and I'm totally opposed to that, as we all should be."

The council also:

●    Heard the mayor announce the purchase of a used ladder truck from Stewart County, Tennessee, for $13,500, using state fire aid money and a city appropriation that was going to be used for an antenna but is no longer needed. Vandegrift said the city needs a ladder truck more than ever, with major facilities in Midway Station. He said Stewart County bought the truck used from Beverly Hills, Calif., but “The truck’s in great condition” and has been driven less than 50,000 miles.
●    Unanimously approved an ordinance simplifying volunteer work on city property. Volunteers will no longer be required to sign in and out each time, and won't be required to be under city supervision at all times, since they would sign a waiver of liability. The change confirms current practice.

●    Unanimously made the 200 block of Johnson Street a one-way street, from Gratz Street to Brand Street, effective Sept. 1. Nance said he interviewed all but one resident of the block, and all but one were in favor of the change.

●    Heard Vandegrift report that more than 700 people watched Wednesday’s online forum about traffic issues, and almost 80 made comments. One suggested traffic cameras to catch and ticket speeders, but the mayor said he had learned such cameras are illegal in Kentucky.

Before the moment of reflection at the start of the meeting, Vandegrift asked members and the online audience to remember the late Joyce Logan and the late Pat Wilson and their families.

EDA sells two Midway Station lots to Creech Services, which bales and ships muck from horse stalls

By Aaron Gershon
University of Kentucky School of Journalism and Media

The Woodford County Economic Development Authority voted unanimously Tuesday to approve a purchase contract for two lots in Midway Station to Creech Services Inc., a firm that firm that bales and ships horse-stall muck.

“This entity serves the community,” EDA chair Michael Michalisin of Midway said during the brief special meeting. “This is a business that’s served our horse farms that are near and dear to our heart, part of our heritage and what Mr. Creech does is provide a very professional, world-class service.”

At the regular EDA meeting Friday, Midway Mayor Grayson Vandegrift endorsed the sale. In May, he and the board were hesitant about making a deal with Creech, since composting is prohibited in Midway Station, but then Creech showed them that composting isn’t what he does.

On July 15, Vandegrift and Michalisin told the Messenger that after meeting with Creech at his Fayette County facility that they were willing to sell two lots that Creech would use exclusively as a transfer point for horse muck that is shipped to mushroom farms.

Vandegrift said Tuesday that some Midway residents had voiced concern about odors, but the only smell they noticed was the smell of a horse farm, and “Smelling is believing.”

He noted that prevailing winds run southwest to northeast, which would take any odor into farmland, but he said there would be no problem even if the wind blew from the northeast into Midway.

Vandegrift told the EDA board that he shared the potential deal with the Messenger in order to get feedback from the public, and heard back from three Midway residents.

“They were concerned and wanted to see what this was,” Vandegrift said Friday. He said Creech invited all three to his facility, and “One of them did join him this Monday, is my understanding. I did not hear back, but I figure no news is good news.”

Michalisin added, “I support Mr. Creech and admire what he built out there (Fayette County) and I just love the fact he wants to be here, be part of Woodford County, wants to be close to our horse farms and wants to bring jobs here.”

At Tuesday’s meeting, former Midway mayor Tom Bozarth, a bloodstock agent, spoke highly of Creech, saying he had known him for 30 years. "He just runs a real class operation, so I can't say enough about him and his integrity," Bozarth said.

During Friday’s meeting the board also:

• Authorized signing of closing documents to sell the balance of the Roach property to Big Dog Trading and Storage Barrel Warehouse Co. The property is next to thenAmerican Howa Kentucky auto-parts plant.
• Allocated the expected profit of $65,000 from Big Dog’s purchase to the Roach family to satisfy debt owed the family.
• Welcomed a new board member, Anna Beth Bobbitt of Versailles. She spent six years as a senior project manager for the EDA and is a client relationship manager at Traditional Bank in Frankfort. “I'm looking forward to contributing any way I can,” she said.
• Heard that a committee led by board member Courtney Roberts continues to work to find a replacement for former chairman John Soper as EDA’s paid staffer. Roberts said he is working with Vandegrift, Versailles Mayor Brian Traugott and Woodford County Judge-Executive James Kay.

Mayor, EDA chair check out firm that bales horse-stall muck and decide to welcome it to Midway Station

By Aaron Gershon

University of Kentucky School of Journalism and Media

Midway Mayor Grayson Vandegrift and Woodford County Economic Development Authority Chair Michael Michalisin of Midway are ready to sell Midway Station lots to a company that bales muck from horse stalls and ships it to Tennessee mushroom farms.

Vandegrift told the Messenger that he and Michalisin met last week with Tom Creech of Creech Services Inc. at his Fayette County facility, and “We agreed that what Mr. Creech wants to bring to Midway Station is not composting and is in actuality simply a transfer point. He takes muck and straw from horse farms, Lane's End being one of them, and bales it via a processor, and then ships it off.”

Composting of animal waste has been prohibited at Midway Station since Bluegrass Stockyards tried to relocate there in 2007, prompting objections and a lawsuit.

In May, then-EDA Chair John Soper that a sale of Midway Station property to Creech would require a petition for a declaratory judgment to determine "if it could exist under a settlement of the lawsuit regarding the stockyards.”

Vandegrift said Wednesday night that he doesn't see that as necessary since Creech is not planning to do any composting in Midway.

“I think that would only come into play if someone were to challenge the sale in court, based on the deed restrictions,” he said. “Obviously, anyone can sue for anything at any time, but after looking at the operation Creech wants to bring to Midway, I'd be surprised if that happened.”

One of Vandegrift's original concerns about the purchase was the potential for odors wafting across Interstate 64 to residential areas, a major concern 13 years ago. “We don't want to stir up the ghosts of the past,” he said in May. Now that he has a clear understanding of Creech’s operations, he says there would be no odor.

Creech said in May that he would like to have a baling facility in Woodford County because he serves so many farms in the county.

Vandegrift said, “Michael and I have both agreed this is a good agricultural business that supports the horse industry and does not produce any discernible odor except for when right up in the building.”

He said the facility would likely add 10 or possibly more jobs to the city.

Vandegrift said he and Michalisin have asked EDA attorney Bill Moore to draw up a purchase contract. It could be approved at the EDA’s next meeting on July 24.

“Once they are approved, the lots sold will be under option for about 90 days,” Vandegrift said. “That allows the buyer to do some due diligence like geotechnical to see what they'll be digging into.”

Mayor announces distillery, RV resort park planned for Mitchell farm at northwest corner of I-64 interchange

City limits in pink; urban service boundary is line above “Proj A.”

UPDATE, July 15: The conditional-use permit process for the RV resort is not expected to begin until September, and will start with the Agricultural Advisory Review Committee, Planning Director Pattie Wilson told the Messenger.

Midway Mayor Grayson Vandegrift sent this in an email to the City Council and news media today.

By Grayson Vandegrift

     I’d like to give you an overview of two new projects that are currently under option on the “Mitchell Farm,” also known as Elkwood, on the western side of 341, across from Midway Station. As you know, industrial and agricultural land has been for sale for quite a long time.

     All of this is preliminary, and by no means are they final, but there are two projects scheduled to close on land purchases in October. For now we’ll call them “Project A” and “Project B.”
     Project A is a small, local distillery that wishes to relocate from Lexington. Their facility would be built near our wastewater facility, within the Urban Service Boundary, but currently just outside the city limits. It is on industrial land and requires no rezoning (see picture).
     Project B would be, in short, called an RV resort, but it could offer much more to the citizens of Midway (see below). After speaking with the brokers involved in the investment, I was assured the RV campsites would be far from KY 341 and out of view. The resort would feature a horseback riding equine pasture on the front end, facing 341. On the rest of the land, which straddles parts of northern Woodford and southern Scott counties, they plan to offer a swimming pool, a swimming pond, a fishing pond, a lazy river, access to Elkhorn Creek, and much more which you can see from the preliminary sketch of the resort.
     While this is an RV campground that would certainly boost tourism for downtown Midway, I was pleased to learn it will also be open for the public to purchases passes for usage. It is on agricultural land and does not need to be rezoned, but the Board of Adjustments of Planning and Zoning will need to grant a conditional use permit. Current zoning laws do permit this type of use on agricultural land so long as that permit is issued. The investors are scheduled to go before the Board of Adjustments on Wednesday.
     Both Projects A and B wish to be on city water and sewer, which we have the capacity for, and which would help us keep our rates in check, if not help us lower them more in the future. This would require us to annex these lands into the city, effectively bringing the city limits to the Scott County line on the western side of 341.

     Project A has been trying to get its distillery moved to Midway for two years, and Project B is likewise struck by our charm, quaintness, and vibrancy. Both would bring jobs and tourism to town. I do not have a total job count for either project at this time.
     Project B will be presenting to the council in an upcoming meeting, and Project A will likely do the same once they get a few more things in place.
     As always, I want you to be able to see this, chew on this, and ask questions. Neither is a sure thing, and public input will be extremely valuable and will be heard going forward. Both projects fit our modus operandi of developing north of Leestown Road around the interstate, and neither requires rezoning. If you have any questions just let me know, you’ll have plenty of time for more questions as the process moves forward.
     I think it’s important to note: The land owners are eager to sell, and the buyers eager to develop. Regardless of how anyone may feel about any of this, if it’s going to happen, I want to bring it in to the city so we can benefit from the tax revenue and the relative distance from our residential centers and the separation provided by a highway and an interstate.

Here's the developer's description of the land use plan:

The Bluegrass RV Resort is nestled in the heart of Central Kentucky along I-64 on the northern edge of Midway, a quaint city with great restaurants, friendly charm and historic equestrian and bourbon industries. Guests will enter the property with views of the entry pond and equestrian pasture beyond. After a peaceful scenic drive, guests will arrive at the clubhouse, where they can relax and receive guided access to their site when ready. This property is home to a luxury RV club resort, family RV campsites and short-term cottage rentals. RV sites provide opportunities for both family sites and adult sites. Amenities include a clubhouse with bourbon tasting and educational tours; the tables with horse riding and a horse rescue; aquatic park with a lazy river, slides, splash pad, and pond swimming; amphitheater; country store; kayak and tub rental; and an adult recreational center with a pool and swim-up bar, fire-pit, and hammock retreat.

The John Soper era ends at EDA and Midway Station; mayor calls the last six years 'an incredible turnaround'

Economic Development Authority Chair John Soper discussed
Midway Station at a Midway City Council meeting in October.

By Al Cross
University of Kentucky School of Journalism and Media

The long, down-and-up story of Midway Station entered another chapter Friday as John Soper stepped down as chair of the Woodford County Economic Development Authority and was succeeded by Michael Michalsin of Midway.

Soper, a former banker, has overseen the revitalization of EDA's industrial and commercial park and led the agency into development of an adjacent area, both of which have turned it from the city's main liability into its key source of revenue.

"When I became mayor, Midway Station was pretty much empty," and the city and the county owed more than $5 million on it, Mayor Grayson Vandegrift told the EDA board in its online meeting. "There was a lot of talk that Midway Station just needed to be sold at the courthouse steps," in foreclosure, which would have been "a disaster."

"Instead, through John's leadership" and the rest of the board, the park has reduced the debt to $2 million, gained seven clients and 10 projects with more than 500 jobs, including the city's largest employer (Lakeshore Learning Materials, which is adding a second building and 100 more jobs) and The Journey, a church that will have a day-care center, which is "a huge get for us," Vandegrift said.

The city's occupational tax on wages and net profits has allowed the city to cut property taxes over 30 percent and reduce sewer rates 25 percent, the mayor noted. And the sale of lots in the park saved the city a $40,000 interest payment this year.

"When John took over as chair, they couldn't pay a bill," Vandegrift said. "And now they're telling us we don't have to pay some of our bills ... because they're paying them for us, like the interest payment on Midway Station. It's an incredible turnaround."

The mayor said he was glad Michalsin is willing to be chair, and told Soper, "I think your legacy will be carried on."

Michalsin said he was willing to take the job on an interim basis, since the board's mission may evolve as it and the three governmental bodies decide how to move on from a paid chairman.

Arranging that role in late 2016 prompted a brief clash between Soper and Vandegrift at a City Council meeting, but the relationship between the pro-development Soper and Vandegrift, who has a large preservationist constituency, evolved into a partnership that worked.

Soper said Vandegrift played a key role in making Midway Station a success by agreeing to borrow $450,000 for a larger natural-gas line to serve the property. He called that "one of the greatest decisions that's ever been made in Woodford County" because it ensured that Lakeshore would come. "That deal was going to evaporate that day if you did not make that decision."

Soper said he is proudest that "We never lost a big deal." He took one last opportunity to promote the Edgewood development in Versailles, which is tied up in court, but after Vandegrift complimented him, Soper said, "We don't have to look like Georgetown; we don't have to look like Jessamine County, and I've never wanted us to do that."

Among the actions the board also took Friday were approval of a deed giving the city ownership of the lot where its only functioning water tower stands, and a deal in which the city will gain control of 38 acres along Interstate 64 to serve as greenspace, "which I think will help us control what the industrial park looks like," Vandegrift said.

The city would get the property in return for forgiving $500,000 to $750,000 of debt owed to it by the EDA, most of which is for the gas line but not all of which is considered collectible. Soper said the city would take over mowing the property next year.

Future development: Renewed interest in property at Midway Station could force the board and the city to decide to allow a larger development than would be allowed under the current property plat and street system.

Kyle Johnson of Lexington, one of the EDA's real-estate agents, said one prospect is looking for 30 to 40 acres for a 100-employee distribution facility, which would require "dealing with roads" and lots that are now zoned for retail business.

"We don't turn any deals down until they don't make sense," Johnson said. "Something big like that, we definitely would want to bring Grayson in." Other prospects include one that is interested in 10 acres but would add only 10 to 15 jobs, and a meatpacking operation that is "probably a longshot."

The Messenger asked the agents about Creech Services, which bales horse-stall muck and ships it out of state. The Lexington firm is looking for a location closer to horse farms but wants assurances that it would be allowed in Midway Station under an anti-composting restriction placed on the property after Bluegrass Stockyards tried to relocate there 13 years ago. Senior real-estate agent Matt Stone said Creech was trying to work out a deal with Keeneland.

Planning and Zoning Director Pattie Wilson reported that White Dog Trading, which is building bourbon warehouses and an office building in Midway Station, will have a permanent pool of water in its necessarily large drainage-detention basin. "It'going to be an amenity," she said. Soper said the firm's office building "will be a compliment to Midway Station," and its four warehouses will produce much revenue, mainly for schools, from taxes on the aging whiskey.

Soper also complimented Wilson and her staff, saying "You guys move at the speed of business . . . You treat everybody fairly who comes into that office . . .Your all's agenda is just good planning."

City in line for pandemic relief funds; mayor proposes giving up to 40 businesses $2,000 each for shortfalls

By Aaron Gershon
University of Kentucky School of Journalism and Media

The city of Midway can get more than $129,000 in for expenses related to the covid-19 pandemic, and Mayor Grayson Vandegrift has proposed funneling the money to small businesses.

The mayor said in an email to city council members Thursday that he plans to apply for over $49,000 to reimburse the city for the $40,000 it spent on the “Midway Bucks” voucher program and $9,000 for expenses such as hand sanitizer,  protective spray in city vehicles, masks and food programs.

Vandegrift said he will apply for $80,000 to “grant 40 businesses in Midway with $2.000 to help make up for the revenue they lost due to being forced to close or partially close. While I feel it is unlikely that more than 40 would apply, should that happen, I propose we award grants first to businesses that were forced to close their doors completely.”

He said that would be “clearly reimbursable,” more so than the voucher program, which “is not specifically spelled out” in the Coronavirus Aid, Relief and Economic Security Act, which appropriated the money. “I am very confident the voucher program will be reimbursed . . . because frankly, it’s that cutting edge,” Vandegrift write. “In reading a summary of the act, I do feel that it falls under the eligibility requirements.”

The mayor said the grant application process would be simple and “would likely verify that the business applying are in good standing with the city on taxes and plan to stay open.”

He said he would ask applicants to say how much revenue they normally make in April and May, “though we would not ask them to open their books to us,” and probably require each to report by year’s end how they used the money: “payroll, rent, supplies, debt, etc.”

Vandegrift said the grants “would give a much needed shot in the arm all at once for all Midway businesses, and help them stay open and contribute to our tax base and culture.”

When Council Member Sara Hicks asked if businesses in Midway Station would be eligible, Vandegrift said the grants would be available only to businesses with 50 or fewer employees.

Council Member John Holloway endorsed the idea in an email, with a caveat: “I like the idea that they can apply for funds in proportion to how much loss they've actually had rather than giving everyone the same amount, but only if we can determine a way to do that without causing infighting over the amounts.  Not everyone has been impacted in the same way, or to the same degree. Things are generally more complex than they first appear.”

Vandegrift said the council will discuss the plan at its meeting June 15.

Council passes resolution saying it will confront racial issues in city; deadline to file for council is 4 p.m. Tues.

By Aaron Gershon and Al Cross
University of Kentucky School of Journalism and Media

The Midway City Council committed itself Monday to confronting racial issues and “taking an equitable approach to all decision-making” amid the nationwide protests of police brutality and racial injustice.

The all-white council unanimously passed a resolution saying the city will examine “the racial biases embedded in our city” and “the racial impacts of city polices,” encourage people of color to participate in government and try to “improve the quality of life for all residents of Midway by asking these questions: Who benefits? Who is burdened? Who is missing? How do we know?”

The resolution’s author, Council Member Stacy Thurman, said “I felt it was good to acknowledge what’s going on in the world right now and know that Midway can always do better . . . and maybe lead to a list of action items.”

Mayor Grayson Vandegrift said he had already begun the process by reaching out to African American pastors. Noting the annual observance of the Rev. Martin Luther King’s birthday, he said he had long asked “how we have a discussion beyond a day in January every year … It’s almost like the country doesn’t have the appetite to tackle this problem,” which he said began when the Constitution included compromises on slavery.

“The founding fathers were well aware of the hypocrisy,” he said. “They created a great country with a terrible flaw to it.” He said solving it “starts with the heart, and it starts in the home, and it branches out from there.”

Council Member John Holloway, who first asked how the resolution would be implemented, shared a personal story to illustrate the racial divide that needs bridging.

He said one of his neighbors, an African American, reportedly said “one of the most awful things I ever heard” before the last election: that he was not going to vote “because voting’s for white people.”

“I was just crushed when I heard that,” Holloway said. “I’m not sure the relationship between the races in Midway is as rosy as what white people think it is.” Vandegrift agreed. “It’s not enough to say you’re doing better than other cities. That’s a pretty low bar.”

Council Member Logan Nance said the resolution was “a great first step,” but “We need to make sure people in the community that are minorities feel they do have a voice and that they can be part of this. . . . We can use this resolution as a reminder for ourselves when doing projects to make sure everyone has an equal voice.”

Nance said he has encouraged African Americans to run for office. The last black city council member was Aaron Hamilton, who did not seek re-election in 2014.

Holloway expanded the electoral encouragement to Latinos, saying he would vote for candidates of color and would even pay the $50 filing fee for any in Midway wanting to run for council. The deadline to file is 4 p.m. Tuesday, at the county clerk’s office in Versailles.

(Holloway and Council Members Kaye Nita Gallagher and Bruce Southworth had not filed for re-election as of 4 p.m. Monday, but Southworth and Gallagher said Tuesday morning that they plan to file; the other three members had. Other filers were Adam Bailey of Old Towne Walk and former council members John McDaniel and Steve Simoff.)

The resolution says “The City of Midway seeks to unify efforts aimed at reducing disparities and commit to intentionally and collectively advancing equity,” and “is committed to hearing individuals who meaningfully engage in raising awareness of disparities and in actively engaging in suggesting and supporting methods by which they may be resolved.”

Council Member Sara Hicks alluded to the shortage of affordable housing in Midway, saying “If we have the intention not to be a gentrified community, we can make policies as a city that will provide those things.”

In other action, the council approved an encroachment permit for an eight-foot-wide concrete driveway behind 230 South Gratz St., the former Midway Woman’s Club building, leading to Stephens Street; and reappointed Michael Michalsin to the Woodford County Economic Development Authority board for a three-year term. 

“He understands all sides of our goals of growth, to grow reasonably sustainably, slowly but to also fit into what makes us who we are,” Vandegrift said.

Michalsin said, “I am keenly aware that I am the only that I am the only Midway appointee to that board. I really do try to think about that and represent what’s important to us.” The EDA controls the Midway Station commercial and industrial development.

Firm that bales horse-stall muck has an eye on Midway Station, but is discouraged by prospect of court action

By Al Cross and Aaron Gershon
University of Kentucky School of Journalism and Media

A Lexington firm that services horse farms says it may want to put a facility in Midway Station that would bale the muck it takes from stalls and ship it on flatbed trucks to Tennessee mushroom farms.

The prospect of Creech Services Inc. offering to buy five to six acres in the industrial park raised the possibility of a court action to determine whether the facility would be allowed under a restriction placed on the property after Bluegrass Stockyards tried to relocate there 13 years ago.

The restriction by the Woodford County Economic Development Authority, which was part of the settlement of a lawsuit over the stockyards plan, bans "the composting of animal waste." Creech says that it would not compost the material, and that it contains only 1 percent manure.

However, EDA Chair John Soper said at the authority's May 22 meeting that sale of Midway Station property for such a facility would require a petition for a declaratory judgment "to determine if it could exist under settlement of the lawsuit regarding the stockyards."

Soper, some board members and Mayor Grayson Vandegrift spoke about the matter in past tense, as if it had been decided, but Soper said in an email after the meeting that no decision had been made.

He said EDA attorney Bill Moore had advised that a sale would require a declaratory-judgment lawsuit, in which a judge determines the rights of the parties involved. "If Mr. Creech wants to pursue a formal offer (no actual or informal offer has been made to date) he would need to be prepared to pursue the matter at his expense to clear the stockyard lawsuit's restrictions," Soper wrote.

Google map has outdated city limits; city has annexed and zoned industrial
138 acres north and east of Midway Station. For a larger image, click on it.

He said during the meeting that such an action would cost at least $2,500 and bring "people from the lawsuit back into Midway Station." The settlement gives any resident of Northridge Estates or Ironworks Estates, or any member of Elkwood LLC, a property owner across Georgetown Road from Midway Station, the right to enforce the restrictions.

Tom Creech, president of the firm, told the Midway Messenger, "I don't want to go to court. . . . I want somebody to want us." He said he might make another approach to EDA after the outcome of a business meeting he has scheduled for Friday.

Creech said Wednesday that he hadn't talked with Soper since before last Friday's meeting, and if he decided to pursue Midway Station land again, "My approach would be to go to the mayor of Midway" and invite him to look at his baling facility in Fayette County, which is separate from his composting facility.

"I don’t want to be the bad neighbor to anybody," Creech said. "I would never propose to put in a compost facility in that park." He said he would like to have a baling facility in Woodford County because he serves so many farms in the county.

"You all depend on these horse farms and the waste off them is an issue, and you ought to be glad I'm getting rid of it," he told the Messenger. His firm also supplies hay and straw to farms. He estimated that a Midway Station facility would employ eight to 10 people, including drivers who work the farms. He said he hires common-carrier trucks to ship the bales.

Vandegrift said Wednesday that he would like to see the baling facility, but he and Soper are concerned about creating no more than 10 jobs by selling five or six acres. Earlier, he noted that EDA and the city want to create at least 10 jobs per acre in Midway Station.

"I do appreciate the fact that it's supporting the horse industry, but just from a dollars-and-cents standpoint, he's got to understand if it were to be something that might end up being litigated, and might be controversial . . . I'd have to explain to people why it was worth it," Vandegrift said. "What butters our bread in Midway is occupational taxes, and this is low jobs." 

However, the mayor said he would not oppose the sale "if there's no smell that bothers neighbors. We don’t want to stir up the ghost of the past." He said, "Overall, I think it's an industry people would support," but "At the end of the day, we just had a lot of unanswered questions."

Creech said the material "smells like a horse barn" and didn't know how far its smell would carry, but argued that prevailing winds wouldn’t waft the smell to Northridge Estates.

Another smell could yet be at work: the smell of money. At Friday's meeting, Soper said selling the property at EDA's price of $65,000 an acre would generate a $97,000 profit that would pay one and a half years' interest on the mortgages for Midway Station. "You gotta have cash to stay alive," he said.

Later in the meeting, Vandegrift said of prospective Midway Station buyers, "A lot of people might be very surprised to know that we've turned down as many as we've accepted … for similar reasons or the same reason."

EDA confident about partner, talks transition from Soper, hires agent and starts transfer of greenspace to city

This map was published in March 2019, when the city annexed the property that EDA had an option to buy.

By Aaron Gershon
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.”

Close call: City's 12-inch water main is hit, quickly fixed

Google image shows water tower and two businesses involved.

By Aaron Gershon
University of Kentucky School of Journalism and Media

Midway residents nearly saw their water shut off on Thursday after an accident involving two businesses in Midway Station.

Mayor Grayson Vandegrift said AST Environmental hired its neighbor, Reed Utilities, to bore underground for an electric-service upgrade. During the process, a worker hit the 12-inch water main that comes from the nearby tower.

After sending an alert to City Council members, City Hall staff and the Messenger at 3:53 p.m., warning that the city's water supply might be shut off, Vandegrift sent another one at 5:31, saying the issue had been revolved.

The city's water and wastewater operator, Jack Blevins, saved the day, Vandegrift said.

"Because of the amount of water on the site . . . Jack was very concerned the break was bad," Vandegrift said in an email. "He was even more concerned because it was at the bottom of the pipe, the hardest spot to do a repair."

Luckily, Blevins was able to determine upon digging around the pipe that he could fix it without cutting it, and used a repair band around the pipe that sealed the break.   

Jack Blevins

Public Works Supervisor Terry Agee assisted Blevins with the repair in what Vandegrift called a team effort. The mayor praised Blevins, who worked without his usual co-worker, who is not working due to being at high risk for covid-19.

"I give Jack a ton of credit because he doesn't normally call me as worried as he did today, and given the current circumstances of dealing with covid-19, the timing would have been exceptionally bad,” Vandegrift said. "He pulled a rabbit out of his hat today."

The mayor added, "It's a great example of why I'm so proud of all our city employees. They're a skeleton crew, but they work together, and they've all absolutely stepped up even bigger during this pandemic."

AST and Reed Utilities also played an important role in helping resolve the problem, according to Vandegrift. "They hit the line by accident but were extremely helpful afterward, he said. "It's not every day the one who hits a line also helps you fix it."

The mayor says he does not fault either company. "Unless you have X-ray vision, it's a human thing to think you're further from a line than you are. It could have been a bad deal, but fortunately, it turned out well."

City Council votes to send all water customers $50 in vouchers for use at local, non-franchise businesses

It will be a while before downtown Midway is this busy again, so the
city's $50 voucher program is designed to shore up local businesses. 

Amid talks of a fourth stimulus of relief bill in Congress, to deal with the effects of the covid-19 pandemic, Midway will have its own stimulus to relieve the economic burden on local businesses.

The Midway City Council voted Monday to send each of the city's 755 water customers $50 in vouchers that can be redeemed at local businesses. The five $10 vouchers will be mailed with water bills at the end of May and can be redeemed until June 30.

"The idea [is to] give an infusion of cash to local businesses through the decisions made by citizens," said Mayor Grayson Vandegrift, who proposed it based on a suggestion by resident Bart Shockley.

Local shops and restaurants "are not going to be able to rely on tourism anytime soon," Vandegrift said. "The idea is to help now, when they need it."

The city's four franchised businesses -- two chain restaurants and two convenience stores near Interstate 64 -- will not be eligible for the vouchers. "I'm not worried about them," Vandegrift said. "They're gonna be OK. I am worried about our downtown."

The money will come from $40,000 that the city had budgeted for interest payments on the Midway Station industrial and commercial park, which it did not have to pay because of land sales made by the Woodford County Economic Development Authority.

Vandegrift first proposed that each water customer get two vouchers of $25 each. After discussing details of the plan, the council changed that to five of $10 each, to let recipients spread the money around, approximate the cost of a meal, and avoid the issue of making change, which won't be allowed.

When redeeming the vouchers, the recipients would sign them, and the business would countersign. Vandegrift said the vouchers will be printed on special paper with a watermark to avoid counterfeiting and would be transferable. He said he would work with individual council members and businesses on other details.

To recognize Shockley's idea, Vandegrift said he would call the program Business Advance for Rural Town Stimulus, or BARTS.

"I'm very excited about this," he said. "I don't know that there's a city in the country doing this. . . . Everyone's got something to gain from this."

Council members were likewise excited. "It feels good to do something good," Bruce Southworth said. "This is the way city money should be spent."

The council also voted to match a $2,000 grant that Council Member Stacy Thurman got from the Woodford Community Fund to buy $7 restaurant meals for the needy. That could extend the program beyond Thurman's planned five weeks, as could more donations. The money is being held by Midway Christian Church.

"I'm just really proud to live in a city that takes care of our citizens and our businesses," Thurman said.

Vandegrift thanked Assistant Versailles Police Chief Rob Young for the countywide work of his officers during the pandemic, when they sometimes can't practice social distancing. Young said, "The officers have really appreciated how everyone's been treating us."

UPDATE, May 6: Vandegrift posted answers to some frequently asked questions:
Q1: When will I receive my vouchers? A1: With your next water bill, around June 1.
Q2: What if my landlord gets my water bill? A2: Midway School Apartments and Midway Loft Apartments residents will receive vouchers in a city issued envelope under your door around the same time. If for any reason you live somewhere else and you don’t receive your bill, please email mayorgrayson@meetmeinmidway.com to make arrangements to receive your vouchers.
Q3: How do I use them? A3: We will furnish a list of participating businesses where you can use your vouchers as if they’re cash. You will need to sign each voucher upon use.
Q4: Can I get change from them? A4: No, but we are asking businesses to be flexible and round to the nearest number as much as possible. They will come in $10 increments, each water customer will receive 5 of them.
Q5: How long can I use them? A5: They expire on June 30, that is the last day to spend them, so use them quickly!
Q6: What if I want to donate them? A6: We ask you call Midway Christian Church at 846-4102 to arrange to drop them off, the Midway Ministerial Association is being asked to help distribute them to those in need.
Q7: What if I have other questions? A7: No problem! Email mayorgrayson@meetmeinmidway.com or call his cell, 361-6320.

In other business, the council approved an encroachment permit for Windstream Communications to install fiber-optic line under the sidewalk on the south side of East Main Street, after the company made clear that it would use existing conduit and do no excavation; and gave first reading to three amendments of the countywide zoning ordinance.

The amendments would allow 48-inch-high fences and hedges in setback areas, instead of 42; allow banners for charity events to be hung on posts and fences for two weeks; and ban permanent placement of recreational vehicles in floodplains. Second reading and final passage of the amendments are expected at the next council meeting, on May 18.

Mayor Grayson Vandegrift included this photo, of a Versailles
sidewalk somewhat cluttered by signs, in a social-media post
saying that he wouldn't offer the Midway City Council a text
amendment that would allow signs in Midway to jut out 5 feet.

Vandegrift said before the meeting that he does not plan to ask the council to vote on a fourth proposed amendment to the ordinance, relaxing sign rules. The county Planning Commission voted to allow signs to project up to five feet from fronts of buildings, with nine feet of head clearance.

Versailles has approved the move, and the Woodford County Fiscal Court has given it first reading, but "I don't feel it's a prudent step for our city," the mayor said. "Our downtown is beautiful and pedestrian-friendly, and I feel that this could only lead to a cluttered and unnecessary look."

If Midway does not approve the ordinance, "It’d be the first time I can remember when all three bodies didn’t adopt the same amendment upon its recommendation [by the commission], but I just don’t feel it’s right for Midway," Vandegrift said. "I don’t anticipate any council members pushing for it either, but if one of them decides to, it’ll receive a vote. Otherwise, it won’t be put on the agenda." He said much the same during the council meeting, and no members spoke in favor of it.

Mayor says condemned landmark likely to be torn down

The building at 116 E Main St. is pictured on Tuesday morning.

By Emmanuel Flemister

University of Kentucky School of Journalism and Media

Midway Mayor Grayson Vandergrift says the condemned building that was once an African American landmark at 116 E. Main Street will probably be torn down.

Vandegrift spoke after Monday night’s City Council meeting, at which he said planning and zoning officials have given the building owner 20 days from Feb. 28 to appeal the condemnation order and 30 days to fix up the building or face demolition.

The council also went over the city’s audit report, discussed a plan to beautify the land in Midway Station along Interstate 64 and agreed to seek bids from contractors to finish the pavilion in the cemetery.

116 E. Main: Building Inspector Joshua Stevens wrote building owner Ness Alamdari Feb, 10, citing 10 issues that needed fixing and giving him 30 days to correct them and "obtain a letter from a licensed Kentucky engineer certifying that the structure of the building is not in danger of collapse and does not pose a threat to public safety. If an engineer letter is not obtained and a building permit not obtained for the above listed corrections, an order of demolition will be needed."

When Alamdari returned a call from the Messenger Feb.19, he said he had just picked up the notice that he had a certified letter. Vandegrift told the council Monday night that Alamdari didn’t sign for the letter until Feb. 28, so Woodford County planning and zoning officials decided to make the time periods for the appeal and completion of the work run from that date.

Vandegrift told council members that they may have to vote on condemnation, and that it’s possible that the city can do the demolition and place a lien against the property to recover its costs.

After the council meeting, Vandergrift said he spoke to Alamdari soon after he bought the building four years ago about getting it renovated, saying he was “excited to see the property get fixed” and that “as a government we were very patient with him for a long time.”

But little work was done, and the mayor said he told Alamdari recently the building was an “eyesore” and that they were “tired of waiting.” He said they have received several “empty promises” from Alamdari and that the building “doesn’t seem to be salvageable anymore.”

Alamdari told the Midway Messenger on Feb. 19 that Vandergrift wants to tear down the building to make it a parking lot for festivals. Vandegrift denied that.

Alamdari said Vandergrift “doesn’t know what the language of diplomacy is. He’s been trying to bully me and I’m not a person that will take bullying so easily. He’s the biggest liar I’ve ever seen. . . . I feel like he is another Trump.”

Vandergrift appeared shocked at that, and said that “My wife would crack up hearing him call me another Trump.” Vandergrift said he was never against the property getting fixed and feels Alamdari is “projecting” and The people’s will is what matters here.”

Vandergrift said, “I think I took the diplomatic route and probably was erring on the side of patience, just trying to make sure we were working with him.” He said he would take no pleasure in demolition of a historic stricture, but “I have been inside the building, and like so many others have watched as time and weather continue to deteriorate it . . . I came to believe that condemnation is the only solution.”

He added, “I have been approached by many people interested in buying and fixing it up. I know they mean well, but I think they missed the boat here; this needed to be done 10 years ago.”

The building was erected in 1898 by the Pilgrim Lodge of the Odd Fellows, an African American men's organization. It has had many owners, landing in Alamdari’s hands in 2016. Local historian Bill Penn, a nearby store owner, said the  building was last occupied 15 to 20 years ago.

Audit report: The council accepted the city audit for the fiscal year that ended last June 30 and heard CPA Sammy Lee of Berea say, “We’re issuing an unqualified, clean opinion. . . . That’s the best opinion that an auditor can issue.” He added later, “The city is really solid.”

However, the audit noted the same “material weaknesses” noted by past auditors: a lack of an internal-control system to prevent, detect and correct financial misstatements, and a failure to segregate duties of the two City Hall employees. Lee said that in such a small city, “It doesn’t make economic sense” to hire more employees for internal controls,” and segregation of duties is “almost impractical a majority of the time.” A PDF of the audit can be downloaded here.

Midway Station beautification: A previous auditor noted an “uncollectable debt” of $500,000 to $750,000 owed the city by the Woodford County Economic Development Authority, which owns and manages the Midway Station industrial and commercial park.

Vandegrift said the debt could be satisfied by giving the land to the city to make a park along the Interstate 64 boundary of Midway Station. He said the idea “is to get any sense of control over the land and ideally control of what Midway Station looks like in the end, from your first glance on the interstate and getting off the interstate, and gives us something in return for debt we’re probably never going to get back.”

He added, “From the EDA’s point of view, it gets land off their books they don’t know what exactly they should do with.”

EDA Chair John Soper said the proposed deal “seems like a win-win” for the city and EDA. He said he had spoken to EDA board members, and “It’s something they can feel good about.”

The tract is 34 acres with two “bulbs” of land on the ends and a long strip joining them. Council Member Logan Nance said, “I don’t think we’re talking about a park. We’re talking about taking the general area and beautifying the area.”

Council Member Sara Hicks agreed, saying “a green space is good for everything.” Vandegrift said that in 20 to 50 years, “Trees would provide a nice canopy.”

The mayor said there will be more talks with Soper and the city Parks Board on what do with the land, “but at some point, the council will have to vote on this.”

Vandergrift said in an email to the Messenger after the meeting, “We should preserve this land and make it a useful quality of life addition for our citizens and visitors, not to mention an access point to Elkhorn Creek.”

Cemetery pavilion: Hicks said the Cemetery and City Property Committee received the architectural drawings for the chapel pavilion and that would like to start taking bids from contractors. Council Member Bruce Southworth said, “I think it’s been long enough and it’s time to have permission to start taking bids.” His motion to do that was approved.

A concrete slab has already been laid as the base of the pavilion, with a concrete bier to hold caskets for outdoor funerals. The bier is visible between the two cones on the right in this photo. (To view a larger version of the photo, click on it.)

Mayor proposes budget that would reduce big surplus by spending to fix sewer lines and build more sidewalks

By Anna McAndrew and Lauren McCally
University of Kentucky School of Journalism and Media
               “Our surplus right now is enormous,” Mayor Grayson Vandegrift said Monday evening as he offered the City Council a 2020-21 budget that would reduce the surplus by fixing sewer lines and building new sidewalks.

               Vandegrift said the surplus is “three times bigger than the average” of a U.S. city in terms of months of revenue – a year’s worth rather than four months’ worth. Spending on the infrastructure projects, mainly sewers, will “bring the surplus down to two times bigger than the average, which means eight months’ worth of money instead of one year,” he said. 

             The current surplus is about $1.1 million. The projected surplus is about $900,000 mainly because about $150,000 would be spent fixing sewer lines on the east side of town and $75,000 is budgeted for sidewalks -- $25,000 of which would go to cost-sharing that the city is already doing with property owners.

             The rest would build a sidewalk on the Midway University side of Stephens Street to the entrance to the Homeplace at Midway. Some of the $75,000 is contingent upon a grant. There are so many grants available for sidewalks, Vandegrift said, “I don’t think we should construct any new sidewalks without one.”

              The city has amassed a surplus largely on occupational-tax income from the Lakeshore Learning Materials distribution center in Midway Station and other business expansions.

              In the current fiscal year, the tax was budgeted to generate $650,000, but the mayor said the city is on track to collect $832,000. His proposed budget for next year estimates $825,000. “Most of our revenue numbers are done conservatively,” he said.

               This is the main source of money for the city, about 45 percent of the predicted income total. The proposed budget predicts increases in most other forms of revenue, such as property tax, business licenses, alcohol licenses and franchise fees.

               The surge in occupational tax led the city to cut property taxes more than 30 percent in the last two years. Asked after the meeting if another property-tax cut is in the offing, Vandegrift said, “Maybe that’s coming down the pike, too. It’s possible; there’s been some discussion.” But he added, “People seem happy so you don’t want to do it too much.”

               The mayor plans to hold budget workshops with the council, probably in the next two weeks, to agree on the budget before putting it into an ordinance. “This is something we are going to work on as we always do,” he said. 

               The city has about $290,000 in certificates of deposit that mature this year, starting next week. Noting that the highest interest rate on the three CDs is 0.93 percent, he named three council members -- Sarah Hicks, Logan Nance and John Holloway, as a committee to look at investment alternatives, with Nance as chair.

               Vandegrift announced that the $10,000 grant for a stage in the park, which the city recently gave up, is being held for it by the Bluegrass Community Fund. “They believe that it is such a worthy project that they are going to hold the funds indefinitely while we figure out how to pay for that project,” he said.

               The city gave up the grant after the Parks Board said it didn’t have the additional resources to do the project. Holloway, who is also the unpaid park manager, said last month that some merchants didn’t like the idea because it would create an alternative entertainment venue to Main Street.

               The council approved permits for two events: Race Rise, a 5K run on May 9 to raise money for a nonprofit veterans group that uses equine therapy for mental health, in conjunction with Mental Heath Awareness Month; and a Family Fun Festival to be held in Walter Bradley Park from 10 a.m. to 2 p.m. May 30.

                The festival will be an event for families and will include face painting, rock painting, and pine cone feeders, organizers said, adding that they plan on generating only one cubic feet of waste that cannot be recycled.

Drone flight over Midway shows the town's old and new

By Dalton Stokes, University of Kentucky School of Journalism and Media
(Click on arrows button, to left of Vimeo logo, to view in full-screen mode)

Council endorses $59-per-lot fee to fund 9-1-1; mayor says he will try 6 months without late fees on water bills

Jeremy Emerson, Doris Leigh, Sharon Turner and Jimmie Murphy received "certificates of excellence" from the city Monday night for their service on the Veterans Memorial Committee. Turner and Leigh are former members of the City Council.

To pay for Woodford County's 9-1-1 dispatch service, a $59 fee would be tacked onto the tax bill of each residential property in the county, under a plan endorsed by the Midway City Council tonight.

The council also approved a new contract with John Soper, chair of the Woodford County Economic Development Authority; honored members of the Veterans Memorial Committee, which is turning its functions over to the city; set terms for the new Code Enforcement Board; and approved appointment of a new city attorney. Before the meeting, Vandegrift announced a trial policy of doing away with late fees on water bills.

Dispatch funding: The nonbinding vote on funding the dispatch center came after police and other first responders said they preferred the tract-fee idea to the other finalist, a fee on water meters. Mayor Grayson Vandegrift said the water fee would have to be higher, perhaps $70, to cover the cost, due to the inefficiency of collecting the fee through the county's eight separate water suppliers.

He said commercial and industrial property owners would pay higher rates, yet to be determined, if the three local governments adopt the proposal. The Versailles City Council is scheduled to hear about the issue Tuesday night.

"We've gone through every possible way of funding this," Vandegrift said, adding later that the tract fee appeared to have unanimous support among first responders. "It's not something anybody wants to do, but it's something we have to do."

The dispatch service is now funded by a $3.50 monthly fee on telephone landlines, which are fading out. About 80 percent of the service's calls come from wireless phones, Assistant Versailles Police Chief Mike Murray told the council. He said eight or nine Kentucky counties have shifted to a tract fee to finance dispatch.

Vandegrift said Midway hasn't participated in the funding, but "With our rising standing in this county, we need to step up to the plate. If we want to be included at all tables, we've got to sit at every table."

Water policy: Over the weekend, Vandegrift told the council in an email that he would "try a six month trial run with no late fees on water/sewer bills." His decision follows a council discussion last month about water policies.

"If this becomes permanent, it will cost the water fund approximately $9,600 per year, but with the Higgins Street water line replacement debt retired, we’re still in a cost-saving situation compared to where we were a year ago when still paying the debt," he wrote. "Plus, $9,600 is a fraction of our overall water fund budget and even if we did rely on that income, it’s an unsavory thing to rely on."

Vandegrift said water bills will still be due on the 10th of each month, "but people who don’t pay on time won’t be penalized a fee. They will, however, still end up on the cut-off list if they continue to be late, and the cut-offs will remain on or around the 26th of each month. If too many customers are ending up on the cut off list, or unforeseen ramifications cause an administrative strain, I may end the trial run within the next six months. But, if after 6 months, things go as I hope and expect they will, this will become new permanent policy. After reviewing the council’s comments from our water policy meeting, speaking with city hall staff, and thinking through it over and over, I think this is a worthy effort to help lift some financial burden for those who struggle the most to afford the most basic of necessities."

EDA contract: Soper is both chairman of the EDA and an independent contractor for the three local governments. His new contract is for six months, and gives him a raise. He has been paid $5,720 per month, and will now get $6,002 a month for recruiting and retaining jobs and selling property in the Midway Station industrial and commercial park.

Midway has been the main beneficiary of Soper's recent work, and it will pay a greater share of his compensation: $1,333 per month, up from $858 a month. Vandegrift said that reflects performance, justified by the great increases in the city's occupational tax on wages and net profits, and is "still a good deal" for the city. Midway's share will be 22.2 percent, or two-ninths, of the total. The county will pay four-ninths and Versailles one-third. The contract is in the council meeting packet, here.

Logan Nance, the only council member who voted against industrial zoning of 138 acres between Midway Station and the Brown-Forman whiskey warehouses (which have a conditional-use permit in an agricultural zone) told Soper that they differ on development, "but you're doing a good job at Midway Station." The property's debt is now being paid entirely by EDA, not the city and county.

Soper reported that EDA may be able to develop public access to South Elkhorn Creek through negotiations with AT&T, which needs a construction easement to replace a fiber-optic line that runs along Midway Station's fence with Interstate 64.

Veterans Committee: Vandegrift presented "certificates of excellence" to four members of the Midway Veterans Committee who were present. The committee was formed several years ago to build a memorial in the Midway Cemetery, raised $40,000 for the project, and worked for years to add names to the monument and hold an annual Memorial Day service. The committee's membership has evolved over the years, and it has turned its funds over to the city, which is assuming its functions.

"You can learn a lot about a town by the way it honors its veterans," said Nance, an Army vet who served in Afghanistan. "Those veterans gave so much to ensure that this country, the values that we value, freedom and democracy, are built in stone. And I think it's only fitting that because of your work, their names will forever be etched in granite. So, thank you all very much."

Code enforcement: The ordinance the council passed last month to create a new Code Enforcement Board, to hear appeals of citations for building-code violations, calls for the terms of the first appointees to be staggered so one appointment comes up each year hence. But when Vandegrift and the council filled the board, they didn't specify the terms. Tonight they decided that Jim Starks would serve three years, Jo Blease two years and Dan Roller one year.

Code violations will be cited by an enforcement officer, whom the city has yet to hire. Vandegrift said he is talking with a Scott County building inspector about doing the part-time work and hopes to have his appointment ready for the council's confirmation at its next meeting, Feb. 17.

In response to a question from Council Member John Holloway, the mayor said that the officer would respond to complaints, not cite violations on his own, but that the complaints can be anonymous.

Other business: Council Member Sara Hicks, chair of the cemetery committee, said the foundation for the pavilion at the cemetery is in place, and stakes have been placed for a road to it. She invited members to check it out. Vandegrift said an architect is doing blueprints for the pavilion, based on a design by Holloway.

The council approved three event permits for the Midway Business Association:a St. Patrick's Day celebration Saturday, March 14; a summer-kickoff block party from 5 to 10 p.m. May 23, the Saturday before Memorial Day; and the Fall Festival Sept. 18-20, with Friday needed for setup.

Also approved was Vandegrift's choice of Sharon Gold as the new attorney for the city. She was not present at the meeting. Neither was Council Member Kaye Nita Gallagher.

Vandegrift said after the meeting that Gold will be paid $283 per hour and her associates at the Lexington office of Wyatt, Tarrant and Combs will get $185 an hour. Her predecessor, Phil Moloney, got $225 and his associates $145. "Phil’s office hadn’t raised their rates in five years, so that was probably due," Vandegrift said in an email. He added that new City Clerk Cindy Foster's "ability to write ordinances (she’s written two of our most recent) will save us a lot on billable hours."