City won't be reimbursed for vouchers, so mayor says council should consider an even bigger grant plan

The vouchers must be spent at local businesses by Tuesday, June 30.

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

State officials won't reimburse the city the $40,000 in coronavirus relief money it sent residents to spend at local, non-franchised businesses, further opening the way for direct grants to the businesses, Mayor Grayson Vandegrift told the City Council and the news media Sunday.

"While this does not put us out any for the first round of vouchers, since it was funded by our economic-development surplus, it clearly could reshape your thinking on the second round," the mayor said in an email. (The city did not have to make a $40,000 interest payment this fiscal year on the Midway Station industrial and commercial park, thanks to lot sales there.)

"While I think this decision . . . does not account for the fact that a voucher program can help create new long-term clientele in our own city," Vandegrift wrote, "it does open the door wider for a small-business grant program, where we could conceivably use up to $80,000 to boost our local small businesses."

Vandegrift had suggested a grant program to reach more businesses, but the council informally voted 3-2 this month to use federal relief money to do two more rounds of vouchers. When retailers said they needed grants or many of them would go out of business, the mayor said he would propose grants in place of a third round and named a committee to work out details.

The committee (Council Members Stacy Thurman and John Holloway and City Clerk-Treasurer Cindy Foster) is scheduled to meet online at 5:15 p.m. Monday. Vandegrift said its plan and the options would be discussed at the July 6 council meeting.

To help the council decide, he pressed for an answer on reimbursement from the state Department for Local Government and the office of Senate Majority Leader Mitch McConnell, who sponsored the $2 trillion Coronavirus Relief, Aid and Economic Security Act.

"Despite the fact that the language in the CARES Act and the spirit of the law clearly indicate such a program should be eligible," the mayor wrote, "DLG decided after a brief review that it was not eligible." Vandegrift, who earlier said he was 75 percent sure of reimbursement, said he has asked the DLG for an explanation and is waiting for it.

He said DLG's Jennifer Peters wrote, "We appreciate your innovative thinking and applaud your efforts; however, after discussion with the review group, this has been deemed ineligible for reimbursement." McConnell's staff said he favored reimbursement, the mayor wrote, but "They have informed me that the state is the ultimate arbiter of the federal money."

Vandegrift told the council, "I am sorry that I couldn’t present you with the most reliable information sooner than now, but we all know we have to act fast when people are struggling and businesses are threatened. I do hope that if the U.S. Congress decides to add $2 billion more to our staggering national debt, that they hammer out a few details better and create an appeals process that allows imagination to enter the fold."

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."

Mayor names committee to design grant program for businesses using covid-19 relief money, as they asked

By Aaron Gershon
University of Kentucky School of Journalism and Media

Mayor Grayson Vandegrift said Tuesday that he is setting up an ad hoc City Council committee to design a grant program for small businesses, using covid-19 relief funds, in place of a third round of vouchers that citizens can redeem at the businesses.

The committee will be Council Members Stacy Thurman and John Holloway and City Clerk-Treasurer Cindy Foster.

The move comes after Midway merchants expressed displeasure with last week’s 3-2 council vote to send residents two more rounds of $50 vouchers, at $40,000 per round, rather than making direct grants of up to $2,000 to businesses, as Vandegrift first suggested.

The mayor said restaurants, not retailers, were the main beneficiaries of the vouchers, and Tuesday he cited reports from local businesses of their redemptions to prove his point.

The Brown Barrel and Blind Harry's got the most vouchers. (Google photo)

The restaurants are getting far more than retail stores. The report shows that The Brown Barrel ($4,180), Goose and Gander ($2,910) Don Jockey ($2,410) were the only three businesses to get more than $1,000 in "Midway Bucks."

Eleven retail stores redeemed a total of $2,300, an average of $209; the highest was $430.

After the council voted for two more rounds of voucher instead of grants, 19 business people signed a letter warning that "without significant assistance or the lifting of pandemic restrictions . . . by the end of 2020, there will be more closed stores in downtown Midway than would be open."

In response, Vandegrift said he would ask the council to appropriate $40,000 for the grant program. Tuesday, he said the ad hoc committee would work on the exact details. "The committee will propose the details and the parameters as well as the potential paying scale of grants" hopefully for the council’s consideration July 6, he wrote.

"We've all agreed that time is of the essence for these businesses," he said. "We need to move as quickly as we can for them, regardless of what is decided."

The letter from the merchants noted that a grant program was clearly authorized by the relief bill but the voucher program was not. Vandegrift has said he thinks it will be approved.

In his latest statement, he said he is talking with the state Department for Local Government and the office of Senate Majority Leader Mitch McConnell, who sponsored the bill, “to get as much guidance as possible” and would report to the council on at the July 6 meeting.

Merchants decry council's rejection of grant idea; mayor says he will ask for it instead of third round of vouchers

By Al Cross
University of Kentucky School of Journalism and Media

Midway merchants are upset over the City Council's decision last week to send residents two more rounds of $50 vouchers to spend at local businesses rather than Mayor Grayson Vandegrift's original idea of direct grants of up to $2,000 to any business, to spread pandemic relief to more of them.

Nineteen business people signed a letter warning that "without significant assistance or the lifting of pandemic restrictions . . . by the end of 2020, there will be more closed stores in downtown Midway than would be open."

The merchants said they are "disheartened and confused" by the council's 3-2 vote last week. It noted the possibility that the federal government might not reimburse the city for the vouchers, as it clearly would for direct grants, and Council Member Bruce Southworth's comment that the city could afford it because of its large surplus.

Each water customer has received $50 to spend by June 30.

"If such is the case, why couldn't both programs be implemented?" the letter asked.

Vandegrift told the Midway Messenger in an email that he will suggest the council do just that after the second round of vouchers, which he plans to issue in mid-July, and not do a third round.

"I appreciate their concerns and them bringing these concerns forward," the mayor wrote. "After the second round of vouchers, I am going to suggest to the council that we use the remaining $40,000 of aid money to go to grants for the businesses who do not meet a certain threshold, based on the data we are tracking. That is to say, the businesses who do not receive the lion’s share of the vouchers can then be eligible for direct assistance. This to me is the best compromise, as it shares these funds with both our citizens and our businesses who need it most."

Vandegrift had suggested direct grants, saying restaurants and the Corner Grocery were getting most of the "Midway Bucks" vouchers, which come in $10 denominations without the ability to have change returned from them. But Southworth and Council Member Kaye Nita Gallagher said the vouchers were popular, and Council Member Logan Nance he didn't think $2,000 would make a difference to a business at risk of closing.

The letter said, "This statement could not be any further from the actual truth of businesses in Midway. . . . This assistance would bridge the expense gap created by the government-forced closure" of retail stores that ran from late March to mid-May.

Nance replied, "Leading up to the City Council meeting, the only feedback I had received was how much citizens and business owners loved the Midway Bucks. I had heard nothing to the contrary or any opinion regarding a different type of stimulus. As a believer in the free market, I think any stimulus that allows taxpayers to have a say and direct where their money goes is more preferable than having a special committee to potentially pick and choose who qualifies for the grant."

He added, "Business owners are struggling and I am empathetic to that. I would fully support a follow up to the second round of Midway Bucks that supports businesses that haven't benefited from them as much as others, and am open to ideas of how we could do that. People are also struggling. The Midway Bucks are a great way to help people and business owners during this time."

The letter, written by Rob Mills of Damselfly Gallery, spoke to the struggle of businesses: "Two businesses have permanently closed, as well as one restaurant modifying its business plan drastically," he said. "I can speak with complete confidence that at least five additional businesses, including myself, are on the precipice of making permanent decisions regarding the future." Then he made the prediction of more businesses closed than open by the end of 2020.

Cortney Neikirk, president of the Midway Business Association, said Kennydid Gallery and Calamity Jane's have closed, though she was not sure the latter was related to covid-19.

Council Member Stacy Thurman, who said she had to leave the meeting before the vote due to a work obligation, wrote in an email, "I was torn during our discussion, but was ready to vote to at least explore the idea of small grants. The voucher program has been great, but I do worry about those shops that aren't seeing any Midway Bucks. If businesses start to close, it changes the character of our town. I want to give them a fighting chance if possible. I appreciate them coming forward with concerns and hope we can come up with a compromise."

Mayor makes Friday, June 19, a city holiday to honor fight for racial justice; says more vouchers in mid-July

Midway Mayor Grayson Vandegrift is making Friday, June 19, a city holiday to honor those who have fought for racial justice, he announced in his regular update today.

Many African Americans observe June 19 as "Juneteenth," the day that a Union general who had just occupied Texas announced that in accordance with Abraham Lincoln's Emancipation Proclamation, "All slaves are free."

Vandegrift said, "We have to keep finding ways to remind each other of the racial inequities that still exist. Slavery ended, but oppression and systematic racism did not," even after passage of the Civil Rights Act of 1964 and the Voting Rights Act of 1965. "We're getting better, but we are still so far away, and to honor all those who have struggled in the fight . . . we have to do more.

Vandegrift said the holiday means that city offices will be closed and city employees won't be working but will be paid. He told the Messenger that when June 19 falls on a weekend, the holiday will be the day closest to June 19.

"While this is not an earth-shattering step," he said in the update, "it's important that we remember that just one hundred fifty-five years ago, black Americans were literally held in chains for nothing more than the color of their skin."

Other topics: Vandegrift said the next round of Midway Bucks vouchers that can be spent at local, non-franchised businesses to help them get through the pandemic will probably go out in mid-July. "We need to make sure that the current vouchers get out of circulation, so to speak," he said. "You've got to spend them by June 30."

The mayor asked that residents consider going to a shop, perhaps one they have not visited before, to spend vouchers. "Some shops really haven't had a cut of the pie at all yet, and that's what we were hoping to avoid," he said. "We've had two shops close already during this pandemic. I'm afraid more will follow if we can't help them. Any bit helps, so please spread your money around as best you can."

Vandegrift began weekly updates on the pandemic March 18, and is shifting to every other week, but he said the coronavirus is "a reality that we live with and will be living with for some time."

"We definitely need to disabuse ourselves of the motions of having a normal summer, but that doesn't mean we have to have a bad summer," he said, noting that more relaxations of restrictions are planned for June 29.

He said social distancing and masks are the best way to keep the virus from spreading, and called for special attention to protecting people with underlying medical conditions and over 60. "There are even signs that people in their 40s need to be worried," he said.

Vandegrift opened his update by expressing condolences to the family of U.S. Rep Andy Barr, whose wife Carol died suddenly at their Lexington home Tuesday night. "It reminds us of how precious life truly is, and how important it is that we love one another."

Council prefers two more rounds of Midway Bucks to business-grant program mayor proposed; budget OKd

Leslie Penn of the Midway Museum Gift Store watched as Elisha Holt (facing camera) and Morgan Castle of the Midway Business Association recorded a promotional video for Facebook last month as stores prepared to reopen. (Photo by Al Cross)

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

The Midway City Council voted 3-2 Monday for a second and third round of vouchers for residents to spend at local businesses, rather than give money directly to the businesses for covid-19 relief.

The council also unanimously approved the city budget for the fiscal year beginning July 1.

The budget, which the council worked out last month, calls for almost $1.8 million in spending. “It really well serves the city of Midway while preserving the surplus, but it’s not skimpy either,” Mayor Grayson Vandegrift said.

Business aid: When Vandegrift learned last week that the city qualified for $129,000 in coronavirus relief funds from the federal government, he proposed that the city apply for $80,000 to give grants of up to $2,000 to as many as 40 businesses to help make up revenue lost to the pandemic.

He told the council that it could issue $80,000 more in vouchers to citizens, on top of the $40,000 that it issued in May, but that would “roll the dice” because there's no assurance that it will be reimbursed. He said the grant program is clearly authorized by the relief law but the voucher program is not.

“We may not know for months,” Vandegrift said. But he added, “I’m confident it would be reimbursed.”

As for the grant program, he said, “Maybe $2,000 isn’t gonna save everybody, but I’ve talked to these shops and restaurants a lot lately, and there are quite a few that are close to having to pack it in.” He said grants would help shops more than vouchers, which he said are being spent mainly at restaurants and the grocery.

Vandegrift said a vote for the grant program would be “a preference vote” that wouldn’t commit the council to it, just start a process in which a council committee would work out details. “The clock is ticking for these businesses,” he said, “and if we’re gonna do a grant project we need to move on it for it to matter.”

Council Member Stacy Thurman said, “I feel we have to be responsible, and I have a hard time trying to make the decision when I don’t know for sure.”

The vouchers come in $10 denominations; no change is given.

Council Member Bruce Southworth said he preferred the vouchers. He said the city could afford to risk not getting reimbursed because it has a big surplus, and “It’s the people’s money to begin with. If we get reimbursed, it’s somebody else’s money. If we use our money, it’s the tax dollars they pay anyway.”

Council Member John Holloway disagreed. “I just don’t think it’s fiscally responsible to give away a bunch of money . . .when we don’t know if we’re gonna get reimbursed for it,” he said.

Council Member Sara Hicks, who had made the motion for the grant program, said the council needs to “prevent a lot of empty storefronts downtown … it can be a snowball reaction; we’ve had that happen before in Midway; if the town doesn’t have enough going on you start to lose more business.”

But no other members favored the grants. Thurman wasn’t present for the 3-2 vote because she had to leave the meeting for a work obligation, Vandegrift said.

Voting with Southworth were Kaye Nita Gallagher, who said earlier, “We’ve gotten a lot of positive feedback from citizens about the vouchers,” and Logan Nance, who said he didn’t think $2,000 would make a difference to a business at risk of closing.

After the vote, Vandegrift said, “This is what I hoped would happen, but I didn’t want to cloud it or make it difficult to have free discussion.”

He said the next round will be conducted exactly like the current one, except that the “Midway Bucks” would be a different color and he might delay before starting again. The current vouchers must be spent by June 30.

“I’m not saying we won’t do them again until August 1,” he said. “I think we’ll probably try to do it in the middle of July.”

St. Matthew AME Church is on South Winter Street.
(Photo by Christopher Riley, via Flickr)

Racial matters: Vandegrift said the St. Matthew African Methodist Episcopal Church wanted people in the city to know that it has put up surveillance cameras to catch someone who is “messing with them.”

“There’s just no way that I can’t believe its not racially motivated at this point,” Vandegrift said. “I’m pretty sure we know who it is. That’s not indicative of the people of Midway; it’s just one jackass.” Addressing the unnamed person, he said, “You should move, because you don’t belong in Midway, in my opinion.” Southworth agreed.

Vandegrift added, “I hope they catch him and we can say his name.”

In a related matter, Vandegrift complimented Versailles police, who patrol the whole county, for their participation in a peaceful demonstration June 3 at their headquarters to honor George Floyd, the African American killed by a Minneapolis police officer.

In a similar vein, Holloway said he is mapping the recently renovated St. Rose Tabernacle cemetery with short biographies of those buried there, and would like to put up an informational history sign about the African American burial ground.

He said he would like to do the same for several sites in town, like the Black History Tour in Washington, D.C., and asked people with information to contact him.

Covid-19 response: ” The virus has kicked into gear again a little bit,” with a recent uptick in Woodford County but no second case reported in Midway, Vandegrift said. He said mask wearing and social distancing should be encouraged.

Midway saw its lone confirmed case on May 22. As of Monday, Woodford County had 58 confirmed cases, with 24 of them recovered, according to the county health department’s Facebook page. One person in the county is hospitalized and with covid-19 and 30 are recovering at home.

During the grant-or-voucher debate, Hicks pitched the idea of having a coronavirus testing site in Midway. Vandegrift said he had talked to county Emergency Management Director Drew Chandler about a mobile site in Midway but had “no luck yet.” He said there is much demand for such services “and we’re small.”

There are two testing sites in the county, including a rapid testing site at Bluegrass Community Hospital in Versailles, where results can be received in less than an hour. The mayor said a Midway resident went there Monday and the test came back negative.

In other business, the council approved a quitclaim deed to Scott Bradley, clearing up some property-line discrepancies at the Midway Corner Grocery, so he can sell the real estate to Nik Patel, who bought the business in January; and approved the addition of Todd Pack’s name to the veterans memorial in the cemetery.

The mayor announced that the city would not have its annual Sparks in Park gathering on July 4 but might come up with “some way of helping to do something.”

Council votes to put completion of cemetery pavilion back into budget; first reading scheduled for Monday

Late-winter photo shows that the concrete base, casket platform and walkway for the pavilion have been completed. 

By Aaron Gershon

University of Kentucky School of Journalism and Media

The Midway City Council voted Tuesday to put $30,000 back into the city's draft budget to finish building a pavilion at the Midway Cemetery.

The decision came after Mayor Grayson Vandegrift said Public Works Supervisor Terry Agee saw an elderly woman roaming the cemetery alone, with funeral crowds limited due to the covid-19 pandemic. It was "heartbreaking to see," Vandegrift said.

The concrete base and casket platform of the pavilion have been completed, and Vandegrift had the rest of it in his proposed budget for the fiscal year that begins July 1. When the pandemic hit, threatening payroll-tax revenue, he and the council drafted a “bare bones” budget without the pavilion.

When Lakeshore Learning Materials, the city’s largest employer, said it would call most or all of its workers back soon, the officials drafted a “middle ground budget” with the pavilion as the main unanswered question, which Vandegrift put to the council.

Council Member John Holloway said he visited several cemeteries and said pavilions are "something other cities are doing now,” And "It's something that should we should go ahead and get done."

He also said, "Something that's this close and to being finished, it seems to me to be a waste of money that went into before if we don't go in and finish the deal."

Council Member Bruce Southworth agreed. "It really needs to be done," he said. "It needs to be finished. We already started it; let's go finish it."

The vote was 4-0. Council Members Kaye Nita Gallagher and Stacy Thurman were absent. The meeting was held online, as meetings have been since the covid-19 pandemic hit.

Holloway said Agee wants to ensure that services at the cemetery are of low stress and that the pavilion will help accomplish that, especially in wet weather.

“He's not just blowing smoke,” Holloway said. ”They can handle things so much better and it'll be a better service,” because graveside services with tents require “being so super careful about where the dirt is” placed.

He also said completing the pavilion might even save some money, because f less manpower used in setting up tents.

The only real question was whether to take the $30,000 from the city’s large surplus or, as Vandegrift first suggested, eliminating cost sharing for repair of sidewalks. After some discussion, the council voted to use the surplus, which Vandegrift said is almost $1 million when certificates of deposit are included.

"I think it's the right thing to do, I think it's the proper thing to do," the mayor said after the vote. "I think we're still very fiscally cautious."

Concern remains about a significant loss of payroll-tax revenue amid the pandemic, so Vandegrift reduced that revenue estimate to $737,500 from his original $825,000.

The mayor said Lakeshore has been "on top of the outbreak" since it began in Wuhan, China, because it has a manufacturing center there. Thus, the company believes it will still have a profitable year, which will help Midway's revenue.

Vandegrift said Midway University may still "produce big" payroll-tax revenue regardless of whether or not classes are online or in person.

He said it's hard to tell how the virus will spread, given behavior such as "idiot kids swimming in pools three inches away from another in Missouri." However, he believes there won't be a "typical recession" if the people of Midway continue to keep proper social distance and wear masks.

While much of the budget remained the same from last Monday's discussion of the "middle ground budget," Vandegrift proposed a handful of mostly minor changes that brought no objections from the council. They included:

● Police expense increased from $160,000 to $175,000, based on Midway’s agreement to pay 4.2 percent of the budget of the Versailles Police Department;
● Brick repair work on the Rau Building, which houses City Hall, down to $17,000 from $45,000, with expectation that a grant will pay part of the cost;

● Parks maintenance reduced from $10,000 to $7,000;
● Christmas decorations down to $3,500 from $5,500.

Vandegrift said Wednesday afternoon that he expects the budget to be in ordinance form and ready for first reading at the council's next regular meeting on Monday. Ordinances require two readings before passage.

Community Fund seeks grant applications, donations

By Lori Garkovich

Chair, Woodford County Community Fund

The Woodford County Community Fund seeks nonprofit partners who have the capacity to address unmet basic needs arising from this crisis. To date, we have provided nearly $8,300 in grants to nonprofits in Woodford County to support their efforts, and these funds have leveraged an additional $4,000 in community assistance.

While we have come far together through these trying times, the test of who we are as a community is not over. And, tomorrow’s “normal” will not be familiar. New challenges will emerge, especially for those whose lives are fragile for economic, health, or other life situation reasons. This is why our Covid-19 Response Fund provides grants to community organizations with creative responses to the challenges of the new normal related to:
• Food insufficiency
• Rent and utilities assistance if from approved nonprofits
• Medical supplies/prescriptions assistance

Grants are available to organizations and programs that work to provide residents with access to food, prescriptions, health care, childcare, unmet housing needs or other unmet needs. We are especially interested in grant applications that support Woodford County residents (e.g., seniors, parents, the food insecure, the housing insecure, the economically insecure) who have lost access to the resources they need to thrive.

Do you want to be a part of this effort? If so, you can make a donation to the Woodford County Community Fund’s Covid-19 Response Fund. Your contribution will be added to the available resources from our permanently endowed community fund, and will be granted rapidly to organizations on the front lines of support.

How can you do this?
• Write a personal check. Place WCCF Covid-19 Response Fund on the memo line and send the check to the Blue Grass Community Foundation, 499 E. High St., Suite 112, Lexington KY 40507.
• To make a donation using a credit card, go to https://bgcf.givingfuel.com/woodford-covid19

Contact Lori Garkovich, chair, Woodford County Community Fund at Lgarkov@uky.edu or 859-519-0889 if you have questions or you want to inquire about support for a nonprofit.

Mayor's update: Stay vigilant, act safely as reopenings begin; vouchers are 'a dividend created by our surplus'

By Grayson Vandegrift

Mayor, City of Midway

This Friday will mark eight weeks since we started social distancing and then soon after started staying healthy at home, all while washing our hands often and practicing good personal hygiene. You likely see or hear all kinds of numbers and projection models about the virus, and frankly, it can be dizzying – and confusing. So here’s something we know: the measures we took have worked. We have not overwhelmed our hospitals, and that has likely saved hundreds if not thousands of lives across the commonwealth.

To your credit, and with great blessings, we have yet to confirm a case of covid-19 in Midway, and we’ve seen only 17 in the whole county. That is a testament to how well you have adapted to these nearly unprecedented circumstances. I do urge us all, though, to remember that just because we haven’t confirmed any cases in Midway, that doesn’t mean it isn’t here.

The unusually long incubation period of this virus means an outbreak could happen today, but we wouldn’t know about it for a week or two. That’s why, even as we begin to see parts of our economy open back up we have to remain vigilant to giving the virus as little chance as we can. Words can’t describe how incredible you’ve been. It’s been two long months, and we’ve got a ways to go still, but what you’ve accomplished is not only impressive, it’s inspirational. So let’s dig in and keep getting through this together.

With staggered openings coming to our economy, we can’t be surprised if we see some spikes in cases, so let’s remember to keep using our good common sense and stay healthy at home as much as possible, and even with some return to a new normal, keep using the social distancing and hand-washing practices that have gotten us here. Midway, and even all of Woodford County, have been a model for how to get through a crisis with the best face possible, and that’s because of you.

I was extremely happy that the City Council supported a plan to use $40,000 of unused economic-development funds to become the first and only city in Kentucky to create a stimulus to help both our citizens and our local businesses get through this time. With your next water bill, which will be mailed out around the 28th, you will receive five $10 vouchers to be used at any participating local business. You can use these as cash, though you cannot make change with them, and those businesses will be reimbursed for the purchase amount. It’s a way to help everyone – businesses who are struggling to meet overhead, citizens who are squeezed to pay bills, and those who are in need of the most basic of necessities. It’s your money – a dividend created by our surplus – and you get to decide personally how you reinvest it in our local economy. And we all know that money spent at home stays at home.

There are frequently asked questions and answers about the vouchers that we will post on the door at city hall and in the post office and other places around town, as well as on our website, and on my Facebook page. If you live in an apartment or you aren’t the one who directly receives your water bill, we’re already planning for how we’ll make sure you get your vouchers. Each home, apartment, or other abode in Midway will receive them. I’d also like to add that this program won’t cut into important infrastructure plans like our sewer rehabilitation project, which is still included in the upcoming budget for this fiscal year, with work to begin in the first half of it.

Masks are still available if you need one; just call City Hall at 859-846-4413 to arrange a pick-up. On May 18, if there are still masks left, we will open that program up to anyone in the area or county who needs one. No one is going to force you to wear a mask, and while I admit it feels weird at first, you get used to it quickly, and it’s an act of love, not of fear. As we transition to a healthy at work environment, masks are going to be a very important part of how we keep cases from spiking.

I truly believe we’re feeding off of each other right now. Even though we can’t be together, there is a light at the end of the tunnel. And if the healthy at work initiative goes well and we’re able to begin gathering in small groups in the coming weeks or month, we will still need to use these skills we’ve clearly shown we can adapt to exceptionally well. So keep your heads up and looking forward, you’ve clearly got many, many reasons to be extremely proud of yourselves and of our home – of Midway. Thank you, and God Bless.

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 Member Logan Nance revises resolution endorsing resettlement of refugees in Kentucky

Midway City Council Member Logan Nance has revised the resolution he introduced to have the city endorse the resettlement of refugees in Kentucky. The action part of the resolution remains the same, but some of the "whereas" paragraphs giving the reasons for it have changed.

For example, the first paragraph of the original resolution said refugees "are forced to flee their country because they have a well-founded fear of persecution on account of race, religion, nationality, political opinion, or membership in a particular social group." The new version simply says they "are individuals forced to flee their country in order to escape war, persecution, or natural disaster."

The second paragraph, which refers to children, adds that "some [are] traveling alone, and none . . . can return home due to extreme vulnerability." A later passage that said some refugees are "torture survivors, people with severe medical conditions [and] LGBT individuals" no longer appears. Also deleted was a paragraph about few refugees allowed to come from certain countries, all but one with Muslim majorities.

The new resolution removes other material and adds information about the economic benefit of refugee resettlement and says "Refugees who resettle in Kentucky communities are a reliable, eager, legal labor force for employers and industry" and "offer determination, grit, perseverance, and a strong desire to succeed and build a better life for their families."

It also adds that refugees live in Woodford County, says "churches and community members in Midway have sponsored the resettlement of several refugee families in the area," and calls Midway "a welcoming community that celebrates diversity and inclusivity."

Nance explains his thinking in a piece submitted to the Messenger. The council is scheduled to consider the resolution Monday, May 6.

Midway Station developer cancels his option, leaving city and county again responsible for debt payments

Dennis Anderson  (2014 photo)

Lexington real-estate developer Dennis Anderson has terminated his option to buy the unsold portion of Midway Station, putting the industrial park and its debt back in the hands of the city and Woodford County.

In a Feb. 7 termination letter to the county Economic Development Authority, which owns the property, Anderson said he and EDA have "two conflicting visions for its future," industrial and mixed-use development.

The city and county developed Midway Station as an industrial park in the early 1990s, but it was largely a failure, leaving the two governments saddled with debt payments on the $6 million borrowed to buy and develop the land. In 2008, Anderson proposed making most if it residential and commercial, and they optioned it to him in return for payment of the interest on the debt.

The Great Recession precluded development, and as the economy improved, industrial buyers emerged: first American Howa Kentucky, a Toyota supplier, then Lakeshore Learning Materials, which build a huge distribution center. Local officials soured on the idea of residential development on the property, and Anderson grudgingly went along last summer. He sold two more industrial tracts recently, but apparently never warmed up to being an industrial developer.

"I think he always saw this as a mixed-use development," Midway Mayor Grayson Vandegrift said Friday. "He's big on residential; that’s where he makes his money." He said it boiled down to conflicting interests of a "a private developer and a public entity," so ending the relationship "is in everybody's best interests."

Vandegrift said he had expected Anderson to terminate the option. That, the mayor said, was one reason he told the City Council this week that it might have to resume making monthly interest payments of almost $3,000 each, and that whatever Anderson decided about his option, which was set to expire Dec. 31, 2019, Midway Station was likely "entering a new phase."

Anderson said in his letter that his company, Anderson Communities, had "taken a substantial loss on Midway Station" and paid about $1.4 million in interest on its debt. "This is money that otherwise would have had to be paid by the taxpayers of Midway and Woodford County." Anderson, who was a pharmacist in Midway before becoming a developer, said he had "fully cooperated" with the industrial development and "I do not want to stand in the way of the EDA's vision."

Vandegrift, asked via email how much he thought Anderson had lost on the deal, said "I think he's been made whole." Counting estimated legal, engineering and other expenses, "I think he has about $2 million in, but I would argue he made that back. He made $800,000 on Lakeshore, $700,000 on the convenience store (the one that hasn’t been built yet), $100,000 on the stair company, and close to that on a few other small lots he sold."

Housing no longer planned for Midway Station; mayor says he doesn't want 'sprawling' housing developments

Midway Station is likely to remain an industrial and commercial development, with no residential zoning. That was the main news as Midway Mayor Grayson Vandegrift reviewed recent developments and looked ahead with the City Council Monday evening.

Vandegrift said developer Dennis Anderson, who has an option to buy much of Midway Station, "is very interested" in changing 61 acres that are zoned residential back to industrial. He said they agree on the need for that, especially with the truck traffic to and from the Lakeshore Learning Materials distribution center that began shipments this month.

"It never really was a good idea out there," with industrial property so close to residential, Vandegrift said.

Midway Station was a failed industrial park in 2008 when the council and the Woodford County Economic Development Authority adopted Anderson's plan to turn it into a commercial and residential development. That plan was delayed by the Great Recession, then was changed by the advent of industry on and near the property and the state's expected disapproval of Anderson's initial tax-increment financing plan to redevelop the property.

Housing: If the 61-acre tract is once again zoned industrial, Vandegrift said, there will be no plans for housing in Midway. He said housing developments need to be affordable for the young and old, have a "small footprint" and "fit with Midway. . . . We do not need another sprawling neighborhood with a big footprint."

Specifically, the mayor said there should be no residential development south of Leestown Road, other than "infill" of small, undeveloped tracts. That could run contrary to the plans of David Thomas Phillips, who owns 31 acres between Leestown Road and the Northridge Estates subdivision. In 2010 Phillips filed a lawsuit seeking a judgment seeking to invalidate development restrictions that were supposedly placed on the property at the time Northridge was developed. The lawsuit has not proceeded largely because Phillips has not pressed it, apparently die to legal complications.

Immediately before his Leestown Road comment, Vandegrift said, "We should be thinking about some guidelines to keep our growth in check and keep it sustainable." Speaking more generally, he said the city needs to look for small industries, not just "whales." Lakeshore has promised to employ 262 people to earn incentives from the city, county and state.

Annexation: The mayor noted that EDA decided last week to exercise its option on 104 acres of the Homer Freeney farm on Georgetown Road, between Lakeshore and the new Brown-Forman Corp. warehouses. "It makes perfect sense for us to annex that. We can create more good jobs and more revenue, and we're not going to encroach on good farmland," he said. "The growth is not going to last much longer. . . . I think we've got to take advantage of it while it's here."

Council Member Sarah Hicks asked if the city should annex the warehouse property, which goes all the way to the Scott County line at South Elkhorn Creek. "I see no reason to," Vandegrift said. "It's a fire hazard," and the county gets the property-tax revenue on the aging whiskey.

The mayor said Anderson has closed on a lot that will be the site of a service station and convenience store on Georgetown Road, and has notified the city of his intent to close on five more acres fronting the road.

On other development topics, Vandegrift said the downtown area is "flourishing" and "is as near to full occupancy as it has been in a long time," the two major exceptions being a building that is blighted and another that the owner won't rent. He said a "longstanding" business that he declined to name wants to move to downtown Midway from downtown Lexington.

Other business: Hicks reported that a plan for trails in Woodford, Franklin and Owen counties will be rolled out at the Kentucky Association of Counties office in Frankfort on Nov. 29 at 11:30 a.m. She said she has worked for two years on the issue and the top priority for Woodford County is a trail from Frankfort to Midway, which she hopes could be extended to Weisenberger Mill.

In the only major business at the meeting, the council agreed to sell the city's 34-year-old fire truck to the town of Berry in Harrison County for $1. Vandegrift said, half-jokingly, "Berry is a much smaller city than us, and as the big guy, we've got to look out for the little fellows."

Lakeshore expects to be operational with 100 workers Nov. 3; unsure but 'optimistic' on timeline for goal of 262

The Lakeshore Learning Materials distribution center is under construction in Midway Station.

This is an expanded version of the original story.
By Elizabeth Allen

University of Kentucky School of Journalism and Media

Construction of Lakeshore Learning Materials’ distribution facility in Midway Station is right on schedule, a top company official told the Midway City Council Monday evening.

Paul Chisholm, the company’s vice president of Eastern U.S. distribution, said it is still on track to begin shipping from the facility by Nov. 3, at which point it expects to have 100 people on the payroll.

Paul Chisholm of Lakeshore spoke to the council Monday evening.

Chisholm said the company will make a “big push” for hiring in August and September, with the goal of work starting Sept. 29, depending on weather. He said 46 construction days have already been lost to rain, but the company still hopes to have the plant under roof by its original target date of May 16.

Support from local and state officials “has been phenomenal,” he said.

Asked after the meeting when the 262 jobs Lakeshore has promised are expected to be filled, Chisholm said that depends on when the building's expansion is completed. He also said recent elections may affect the timetable, since the company is heavily reliant on public-school funding.

“We’re optimistic,” Chisholm said, adding that he expects the plant to employ 150 to 175 people a year from now. It has three years to reach 262 jobs and kick in the state and local incentives offered to attract it.

Chisholm also gave new insight into Lakeshore's decision to come to Midway. He said the final decision essentially came down to three factors: location, available labor and a sense of community.

The central location of Midway made it a better choice than the runner-up, High Point, N.C., Chisholm said. North Carolina has a “right to work” law and no inventory tax, but those advantages were not enough to outweigh Midway’s.

Chisholm said Midway was also expected to provide a workforce that was more likely to stick around and contribute to the culture of the company. He said Lakeshore could already be shipping from readily available buildings in Shepherdsville or Hebron, but competition for workers is heavier there.

Perhaps most importantly, Chisholm said, Midway is a place where he and other Lakeshore officials felt like the company could be part of a community.

He recalled Lakeshore CEO Bo Kaplan saying as they left Midway, "'This place feels right; this place feels like home. Chisholm said the feeling was "intangible."

In response to a question, he said one thing was not a factor: the recently passed "fairness ordinance" that bans discrimination on the basis of sexual orientation or gender identity.

After Chisholm updated the council members on Lakeshore's progress, Mayor Grayson Vandegrift updated them on Midway's occupational tax revenue.

Through December, Vandegrift said, Midway had already taken in $331,000 in payroll taxes. This means that in only half of the fiscal year, the city had already received 82 percent of the budgeted $400,000 in payroll taxes for the year.

After the meeting, Vandegrift told the Midway Messenger that the council was conservative in its occupational-tax budgeting. He said construction work on Lakeshore’s plant and the American Howa Kentucky auto-parts plant, now open, is bringing in unexpected revenue, local restaurants are doing better and Midway University has added to its payroll.

Among other business, the council approved an event permit for the 14th annual 5K Race for Education on April 8 and agreed to have the cemetery house torn down. Vandegrift said he would probably seek bids for the work because city workers are about to enter their busy season.

Main Street activity is picking up, with new businesses and new owners for key buildings

By Tiffany Broughton
University of Kentucky School of Journalism and Media

Midway has become known for its delicious food and good shopping, but the commercial trend of Main Street has been a bit sideways, with four of 28 storefronts unoccupied. But a chiropractor's office and the Mezzo restaurant recently opened, Jordyn's cafe is coming soon, and vacant buildings have been purchased, so Main Street is on the rise.

There is rarely 100 percent occupancy on Main Street, said Kenny Smith, the owner of Kennydid Gallery, who first rented a building, then three years ago bought the one where his business is now. It's old, like most on the street divided by Kentucky's first railroad.

"When you buy an old building, you have a lot of work to do," Smith said. "Old buildings require a lot of maintenance and a lot of up keep. But it’s well worth it because when you buy something that’s 150 years old, it’s a lot more special that just buying something in a shopping center.”

MidwaypkgBroughton from Al Cross on Vimeo.

Several businesses rent. The co-owner of bloodstock agency McMahon and Hill, Michael McMahon, says he has never had a bad experience with his landlord. “They lease the upstairs and the next-door place that is going to be a coffee shop,” McMahon said. “They are easy to work with and they are making a big improvement to Midway. They really believe in downtown Midway so they want to see nice places doing business here.”

Some landlords believe in downtown so much that they own multiple buildings. Peggy Angel, the owner of Steppin' Out Boutique, Peggy Angel, says her landlord, Ness Alamdari of Lexington, owns the building and she shares it with two other businesses. “This particular building, as I understand it, originally had the city tower or clock on top of it and lightning struck it several years ago so they are talking about possibly replacing it.”

Ness Alamdari posed in front of his latest building March 7.

Alamdari offers hope for one Main Street building desperately in need, Angel said: “He recently purchased the white building that had been condemned, almost, up the street and had gone vacant for many many years. He has purchased that and is going to totally redo that as well.”

Alamdari bought the building at 116 E. Main, one of the largest on the north side of the street. He didn't respond to a request for an interview, but Angel said, “He is all about the city and wanting to preserve the city and the historic preservation of the city. I know he has worked with other landlords doing various things.”

The Thoroughbred Theater building, which Angel had rented, also sold recently. Its future has not been revealed.

Smith said businesses come and go for various reasons, but there seems to be a core of stability that holds everything together. “Our visitors always comment on what a nice little town Midway is,” he said. “Overall, I think people maintain their buildings well and take pride in the ownership.”

Payroll tax, licenses and permits brought city 40% over estimates; clerk-treasurer cites new jobs, more business

By Andrea Richard

University of Kentucky School of Journalism and Telecommunications

The City of Midway saw big increases in its two main revenue sources in the last fiscal year, according to an audit presented to the city council Monday night.

The audit for the year ended June 30 showed revenue from licenses and permits was 43 percent above budget, and occupational taxes were 42 percent over budget.

The audit shows $194,720 was budgeted for licenses and permits, and the city took in $277,596. City Clerk-Treasurer Phyllis Hudson told the Messenger that the increase reflects larger-than-expected revenue from alcohol licenses, business permits, insurance licenses and the Midway Fall Festival. 

Hudson said the even larger dollar increase in the 2 percent occupational tax reflects new jobs at The Homeplace at Midway, the new senior-living community across from Midway College, and the McDonald’s in the Green Gables development in the southeast quadrant of the Interstate 64 interchange. Each employs about 45 people.

The occupational tax generated $396,618 in fiscal 2015, compared to a budget expectation of $280,000, a boost of $116,918. The city ended the year with a $567,000 cash balance, an increase of $338,183.

CPA Debbie Smith of the Mountjoy Chilton Medley accounting firm presented the numbers to the council.

Council member Sara Hicks asked Smith if the city’s “nice numbers” meant Midway was financially strong, or if the city “[wasn’t] taking care of business.”   

Smith said most cities try to keep “three to four operating months of expenses as a rule of thumb.” Last year, the city’s expenses totaled about $788,000, but its revenues were about $1 million.

Smith told the council that they ended the year with $420,000 in CDs, giving them a strong cash and asset position. Even with adding a pension liability, required by federal law, the city still had a good, strong net position, Smith said.

Smith’s one recommendation to the council was to update the ratings of streets’ condition. “You’re supposed to every three years,” Smith said. “It’s been four or five.”

Speed limit sign: The council voted to spend $3,170 for a speed limit sign to collect data on the city’s traffic. The move grew out of concern over speeding on Stephens Street at the Brand Street intersection.

“We’re going to have to collect [the data] ourselves because no one else does it,” said Council Member Bruce Southworth, who lives near the intersection.

Mayor Grayson Vandegrift said the data will be used to show trouble spots to police and state highway officials. “Sometimes you have to take care of your own problems in your community,” he said. “We can use it to say this is what we have . . . verifiable data.”

Southworth said the sign not only flashes the speed of a vehicle, but also collects the number of cars traveling the street, and how much the cars are going above the speed limit. The city can set the sign to a specific limit, and it will flash red if drivers travel above the set speed.

After Southworth presented the council with the price tag, Hicks asked, “We hire the Versailles police to perform a job for us in Midway. Why are we not able for our employees to do this service for us?”

Vandegrift said he did not have an answer to Hicks’ question, but he’s learning “more and more that you don’t want to burn bridges with the state,” which has not been as responsive to city requests for help as city officials would like.

Other business: After the council approved the mayor’s appointment of Council Member Libby Warfield to the Veterans Committee, Warfield said she wanted to buy two wreaths for each of these holidays: Veterans Day, Memorial Day, Christmas and the Fourth of July. The council agreed to two each for the former pair, and one each for the latter pair.

The city’s older fire engine sustained damage after the driver backed into a rail. The truck was being used to clean the streets after the fall festival. Vandegrift said he’s “trying to figure out whether to pay out of pocket [for the damages] or to go through insurance,” which might result in a premium increase. The body-work estimate ranges from $12,000 to $14,000.

Auto-parts factory in Midway Station is 'a total game-changer' for Midway, Mayor Vandegrift says

By Andrea Richard

University of Kentucky School of Journalism and Telecommunications

The coming of an auto-parts factory to Midway Station, the biggest investment in the industrial park in its 18-year history, is a game-changer for the city, Mayor Grayson Vandegrift says.

Vandegrift said in an interview with the Midway Messenger that American Howa Kentucky Inc.’s decision to build a plant in Midway means that more factories will follow, now that AHK has demonstrated confidence in the property.

“If we bring in four to five industries over the next however many years, and each of them gets up to 100, 200, maybe 250 employees, it’s a total game-changer for the city of Midway,’ Vandegrift said. “It will change everything about the way we’re able to improve services and what we can add to our city.”

State officials said AHK will bring 54 jobs to Midway, but Vandegrift said Craig McAnelly, executive director of the Woodford County Economic Development Authority, told him that the factory will bring 63 jobs to the city.

“In Midway, you count every nine jobs you can get,” Vandegrift said with a laugh. He said the factory will be the city’s largest employer after Midway University, and that will boost the city’s budget.

The city’s occupational tax is 2 percent of payroll. With the average auto-manufacturing employee making roughly $22/hr, the city would net $915.20 in tax per year from each employee. With 63 jobs at AHK, Midway would collect an additional $57,658 a year.   

“You see why Thursday was such a good day for me?” asked Vandegrift, a former one-term city councilman who is in his first year as mayor.

AHK, a Japanese company based in Bowling Green, makes interior parts for the Toyota Camry, made in Georgetown. It expressed interest in purchasing 12 to 15 acres with an option to purchase five more, Vandegrift said.

“What we were able to sell them on here is that there is a huge benefit with their logistics, being this close to Toyota and right on the interstate,” Vandegrift said. “The land is really good. You don’t have to cut through a bunch of rock. It’s ready to dig. I fully expect the geotechnical report on the Roach property to say the same thing.”

The Roach property is a 38-acre, industrially zoned tract on the east side of Georgetown Road (KY 341) next to the industrially zoned part of Midway Station. The land was formerly a part of the 215-acre property known as the Homeplace Farm owned by the Roach family. The EDA has an option to buy it, and recently had it rezoned industrial.

According to the Versailles-Midway-Woodford County planning and zoning commission, when Midway Station was developed in the 1990s it was rezoned with certain conditions, and excluded the Roach property. EDA bought the remaining property.

After many years of little development, and the city and the county still paying off the bond issue used to buy the property, EDA and the city struck a deal with Lexington developer Dennis Anderson to transform most of the property into a residential an commercial development.

But that started as the Great Recession began, and Anderson did not exercise his option to buy the property. As the economy improved and industrial prospects surfaced, EDA had the rear 80 acres of the property zoned industrial.

Vandegrift said EDA optioned the Roach property “to give this company an option. From what I understand the company likes both spots. We should know very soon exactly where they want to go. But it appears like the Roach property right now.”

The mayor said AHK is in the process of picking out a contractor, and he hopes the contract will be signed soon.

“I had heard originally when this was still kind of under our hats that they may want to start breaking and digging in December, but that’s pretty ambitious,” Vandegrift said. “I would think we’re looking at the spring. That would be my guess.”

The mayor also said the city has another prospect for the industrial property at the rear of Midway Station.  

“They just didn’t want to be the first one,” he said. “They wanted to know that it worked.”

The mayor said he’s “as confident as the process allows me to be” that the company will follow through.

The chances “are probably better than 50-50,” he said. “That’s being somewhat conservative about it, because there are a lot of things that come into play that prevent a company from relocating – and not just here, anywhere.”

Vandegrift said he’s not sure how many jobs the prospective company would bring to Midway, but assumes it would bring around the same number as AHK.

The mayor Vandegrift said he doesn’t see the city going after large factories: “I think we’re going to try to hit these companies that have between 50-100 employees and maybe they’ll want to expand.”

Vandegrift said he believes the industrially zoned land could hold six manufacturing plants, but the city’s strategy is to bring in about five similar sized industries to the area.

The mayor was excited about AHK coming to Midway.

“I think everybody was starting to believe it was never going to happen,” he said. “But now that it’s happening I think it’s going to snowball in the right direction.

Auto-parts factory will bring 54 jobs to Midway Station; most of industrially zoned land still available

STATE PRESS RELEASE follows; Midway Mayor Grayson Vandegrift says the exact location of the factory will depend on geotechnical work recently ordered by the Woodford County Economic Development Authority, which owns the property. EDA Chair John Soper said, "The geo-tech is in on all 80 acres and all of it is suitable for construction, therefore, geotechnical is not an issue on any of the I-1 [industrially zoned] land. The company will most likely purchase 12-15 acres and may option up to an additional like amount. The total I-1 available was 80 acres. Remember this is not a done deal yet. This was a very significant starting point and I fully expect it will go forward; however, till a purchase contract is signed we won’t take anything for granted and will continue to assist AHK in making a very important decision not only for them but for Midway and Woodford County."

Bowling Green-based American Howa Kentucky Inc. (AHK), a manufacturer of interior products for the automotive industry, will create 54 full-time jobs through an investment of more than $13.1 million in a new facility in Midway, Gov. Steve Beshear announced today.

“The automotive industry is a major factor in the success of Kentucky’s economy,” Gov. Beshear said. “With that, so too are the automotive suppliers who ensure the industry thrives in the Commonwealth. Auto manufacturers and suppliers contribute more than $6 billion in payroll to Kentucky workers annually. With announcements like American Howa Kentucky’s, we know that figure will continue to climb.”

The construction of a 60,000-square-foot facility in Midway Station Industrial Park will allow AHK to supply the nearby Toyota Motor Manufacturing Kentucky facility in Georgetown with headliners for the Toyota Camry.

“We are grateful and excited to announce that American Howa Kentucky will build a manufacturing plant in the industrial park at Midway,” said Hirosato Nanami, president of American Howa Kentucky. “We chose the Midway site due to the commitment from state and local officials and incentives which made Midway the obvious choice.”

AHK currently operates one Kentucky facility in Bowling Green, employing 179 full-time workers. That facility produces dash insulators, sunshades, headliners and other automotive interior products.

The company announced that facility in 2007 and expanded it in late 2008, adding 24 jobs, and grew it again in 2011, adding 86 jobs and 56,000 square feet to the 138,000-square-foot facility.

The Bowling Green facility already plays a role in Kentucky’s automotive-related success.

In 2014, approximately 20 percent of Kentucky’s announced new investment and new jobs came from motor vehicle-related products. The Commonwealth is home to more than 470 automotive facilities employing nearly 86,000 people. While automotive jobs have declined by 26 percent nationally since 1990, Kentucky’s automotive workforce has grown by 72 percent.

“I welcome American Howa Kentucky to Midway and the economic impact that it will have on the area and the state,” said Sen. Julian M. Carroll, of Frankfort. “We have a skilled and dedicated workforce ready to fill the new jobs the company will create. I look forward to their success well into the future.”

“American Howa Kentucky is a great addition to Midway and offers an exciting opportunity with 54 new full-time jobs,” said Rep. James Kay, of Versailles. “The company has already seen great success in the Commonwealth and I look forward to seeing its growth continue with this new location.”

“On behalf of our city, I am pleased to welcome American Howa Kentucky to Midway, Kentucky,” said Midway Mayor Grayson Vandegrift. “We are very appreciative of the confidence that they’ve shown in our workforce and business community. We appreciate the Cabinet for Economic Development’s assistance in expediting this project and look forward to a long-term corporate relationship with AHK.”

“This is a great day for the citizens of Woodford County, and we welcome American Howa Kentucky to our corporate family,” said Woodford County Judge-Executive John Coyle. “This project will bring needed manufacturing jobs to our community and tax base which allows us to better serve our citizens. Thank you Gov. Beshear, Cabinet for Economic Development and Woodford EDA, who guided this project through completion.”

To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved the company for tax incentives up to $900,000 through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the agreement term.

Additionally, AHK was preliminarily approved by KEDFA for $300,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing equipment.

American Howa Kentucky also is eligible to receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, companies are eligible to receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives. Last year, the Kentucky Skills Network trained more than 84,000 employees from more than 5,600 Kentucky companies.

Council raises tax rates slightly; majority says revenue base must be protected

The Midway City Council voted tonight to raise taxes slightly, to safeguard the city's future revenue base, after debating whether the small amount of extra money this year was worth the trouble.

The tax on real estate will be 10.6 cents per $100 of value, up from 10.5 cents for the last fiscal year. Personal property will be taxed at 18 cents, up from 16 cents, but the increase is estimated to generate only $214 more than the old rate because the value of personal property on the tax rolls declined this year, to $1,071,970 from last year's $1,205,484.

Woodford County Property Valuation Administrator Gary Gillis was at a loss to say why for sure, but told the Midway Messenger last week that some taxpayers were late in filing their personal-property returns by the May 15 deadline. Versailles reportedly had a similar phenomenon last year.

The value of real estate in Midway also declined, to $96,731,300, from last year's $97,241,400. When property value declines, taxing authorities can levy a compensating rate, which generates roughly the same amount of revenue. Tax rates have only one decimal place, so the amounts are only roughly equal. Based on property valuations, the compensating rate on real estate will generate $103,671, or $1,568 more than last year's $102,103.

"Is that really worth it?" Council Member Bruce Southworth asked, as the real-estate rate came up for a vote. Southworth, who took office in January, cited the slow economy and its effect on jobs. He was the only member to vote against the rate.

Council Member Sharon Turner and Mayor Tom Bozarth said the council usually takes the compensating rate, "to keep our revenues kind of steady," as the mayor put it. Turner said the rate makes up for depreciation of property. Later, they said failure to adopt the rate permanently sacrifices revenue that is available to the city from sticking with the compensating rate.

(The council can set whatever tax rates it wants, but if it wants to increase revenue more than the roughly calculated compensating rate it must hold a public hearing. If it wants a rate that would increase revenue more than 4 percent, citizens can petition for a ballot referendum on the rate.)

Council Member Grayson Vandegrift said he had thought about skipping the compensating increase for this year, but "this one doesn't particularly bother me, it's such a minor increase."

But when the council came to the personal-property rate, Vandegrift voted against it. He said he understands why the city's accountant recommends the compensating rate, to take whatever rate is easily available, but "I just disagree with that philosophy."

Council Member Sara Hicks said the total revenue increase could be used to support civic activities sponsored by Midway College, which sought support at the meeting for its Artists and Lecture Series. Council Member Dan Roller said he would prefer that the council support the city's regular expenses and use windfalls like last year's $2,500 donation from the Iron Horse Marathon to make donations.

Earlier, the council agreed to continue its $1,000 annual support of the Artists and Lecture Series, indicating to college spokeswoman Ellen Gregory that it might increase its support if the college assembled next year's lineup and asked for support while the council is making its next budget.

"I'm very excited" about the 2013-14 schedule," Hicks said. "This is a really valuable service the college offers Midway . . . for the citizens of the town to have access to cultural events."

Gregory said a few parts of the schedule are still being finalized. Among those firmly scheduled are a Constitution Day observance with Deputy Chief Justice Mary Noble, Sep-t. 17 at 7 p.m.; Dr. Clifford Kuhn, The Laugh Doctor, Oct. 17 at 5 p.m.; a Mary Todd Lincoln chautauqua on a date to be determined in March; and Kentucky Poet Laureate Frank X. Walker April 1 at 7 p.m.

Among other business, the council accepted a $29,000 bid from Renner & Sons of Lexington to place a cut stone facing and cap on the reconstructed wall on Gratz Street. Bozarth said the other bid, from Bobby Cameron of Mount Vernon, was $32,000. Here's a current photo of the project:

Woodford Tomorrow tells EDA it wants to balance county's development and preservation

By Courtney Kincaid

University of Kentucky School of Journalism and Telecommunicatons

Woodford Tomorrow, a citizens' economic-development planning group, presented its goals on how to encourage economic development in the county, while preserving its attractive attributes, at the Woodford County Economic Development Authority’s monthly meeting Friday.

Woodford County has fought for 40 years over preservation and development. Like many other counties, it has tried to balance the benefits of rapid growth with the challenges it creates, and that is the concept behind Woodford Tomorrow. 

“It’s a cross-section of very strong opinions on both sides of the equation," Versailles City Council Member Ken Kerkhoff, a member of the group, told the EDA board.

Another member, Brett Butler, said the group agreed that “We’ve been at each other for too long” and need to examine “how Woodford County is going to approach the future as the economy starts to turn. . . . A house divided cannot stand.”

Brett Butler of Woodford Tomorrow speaks to the county EDA board.

The organization began forming in 2010, with the mission to lead and act as strategic facilitators and bring together neighbors and community leaders toward a shared vision that would improve and communicate the county’s attractiveness to residents, businesses and visitors, Butler said.

“We agree a lot more than we disagree,” he said. For example, all agree that “We don’t want Versailles Road to become Nicholasville Road.”

Woodford Tomorrow’s first objective is to create a “Uniquely Woodford” brand “to promote the positive, wholesome, ‘uniqueness’ of Woodford County, promote economic development, and to position Woodford County as a desirable place to live and locate new businesses,” Kerkhoff said. In its statements of purpose, Woodford Tomorrow says it desires development that highlights what is uniquely Woodford, rather than replicating what can be found in “Anytown, Anywhere.”

The group targets six clusters of economic activity that show promise for success in capitalizing on the uniqueness of Woodford County: agriculture, business and industry, health care, education, hospitality and the arts. Butler discussed business and industry, the cluster of most concern to the EDA because of its goal to create and retain jobs. 

Butler noted that Woodford Tomorrow’s description puts business before industry. “The industry is important and we do want the jobs to come here,” but the county should think about recruiting white-collar professional firms and consulting firms, he said, not only to create a diverse economic base, but to increase salaries.     

“Let’s recruit some destination businesses,” Butler said, adding said that when the group realized that the county has already rezoned 400 acres for business, “That was a big wake-up call. . . . Let’s get focused on that.”

Butler discussed the action items that are needed to continue this growth and development, beginning with hiring a director of economic development and the funding of a budget for multiple years.  The first priority on the list: Retain and expand existing business and industry.

Butler noted that Woodford County’s location provides a foundation for the growth of business in the community and offers all that a business or industry might be seeking: “a beautiful landscape; solid business infrastructure, quality health care, strong entrepreneurial spirit, and quality education system.”

Those things allow for the convenience and advantages of being in a major metropolitan area but with the quality of life associated with a rural agricultural community, Butler said.

“Employers are attracted this this sort of rural lifestyle with big-city convenience,” he said. “Woodford County is going to have to be competing for the jobs of the future.  The economy is starting to turn around and we have to see how we can position ourselves to win because there is a lot of communities out there competing for jobs and we know we have to come together to do that as a team.”

Asked where the group goes from here, Butler said the group’s function is “to help bring people together,” and it will make similar presentations to the local governing bodies. “We’re not trying to take over anybody’s job,” he said. “What we are trying to do is establish common guidelines.”

Chamber director wants Midway, Versailles to cooperate

The new executive director of the county Chamber of Commerce, Don Vizi, told the board that the chamber is trying to get back involved in economic-development efforts.  “The chamber has been kind of inactive for the last four to five months, and we want to be more active with the EDA and tourism and . . . try to bring Midway and Versailles together, which as you know has been kind of a problem, to get them working together,” he said.

The EDA developed the Midway Station former industrial park, but it attracted only a few jobs and has been rezoned for commercial and residential development. Representatives of local banks, who hold the debt for Midway Station, came to Friday’s meeting to discuss an appraisal of the property, but that discussion was held in closed session.