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."

Property valuations rise 14.4% as payroll-tax revenue is steady, so mayor proposes cutting property-tax rates

UPDATE, Monday, Aug. 24: The council heard first reading of the ordinance.

Property valuations in Midway are up substantially, and Mayor Grayson Vandegrift is recommending that the City Council reduce tax rates so the city will get about the same amount of tax revenue and property owners will collectively pay about the same amount of taxes.

Vandegrift has called a special council meeting for Monday to give first reading to the tax ordinance so the council can give it second reading and enact it at the regular meeting Sept. 8, "to get our tax preparations out on time," he told the council in an email. "The state was behind in sending the compensating rates."

Each year, the Revenue Cabinet looks at assessments made by property valuation administrators and calculates for each taxing authority a compensating rate, one that would give it about the same amount of property-tax revenue as the current year, which Vandegrift has proposed. (It also calculates what rate would raise revenue by 4 percent, the most that a taxing authority can get without being subject to a petition for a referendum on the rate.)

The valuation of real estate in Midway went up 14.7%, to $135 million, from $117.7 million. Personal-property valuations were $5.35 million, up from $5 million. The total valuation rose 14.4%.

Vandegrift was aware of the increases in July, when he named Council Member Logan Nance, Fiscal Court Magistrate Liles Taylor of Midway and Midway Business Association President Cortney Neikirk to a committee to study the possibility of tax rebates due to rising valuations.

He said then that valuations are rising because housing demand exceeds supply, and valuations in the city weren't closely scrutinized for four years before its housing market "really took off." He said Property Valuation Administrator Judy Bobbitt told him she divides the county into quadrants that are reviewed every four years and assessed at fair market value, mainly on comparable sales in the area.

The mayor also said in July that rates could be reduced, “but we’ve already cut them 30% and I don't want to hamstring ourselves or future leaders from being able to raise them if the revenue is needed."

His thinking has changed. He has proposed compensating rates of 6.2 cents per $100 on real property, down from 7 cents, and 6.4 cents on personal property, down from 7.5 cents.

He said in his email that there is an argument that cities shouldn't cut property-tax rates because "you can never get that revenue back," but he said that does not applies to cities like Midway, which rely mainly on occupational taxes on wages and net profits.

He said City Clerk-Treasurer Cindy Foster told him that occupational-tax income in the second quarter was virtually the same as in 2019, though "we expected to take our worst hit due to the pandemic."

Vandegrift said the coronavirus will continue to be unpredictable, but "Our numbers and the new businesses we're bringing in, along with the construction crews building new facilities, gives me great confidence that we will exceed our revenue projections for this fiscal year. Other revenues are holding steady as well, but occupational tax butters our bread."

He added, "I believe these rate cuts are appropriate since individual families and businesses are struggling. Anything we can do to ease their tax burden, not add to it, seems prudent and necessary."

He said his proposal amounts to a 12% tax cut on real estate and a 15% cut on personal property, "but as you can see from the calculations, it will overall still generate the same amount of revenue for the city."

The meeting will be held via Zoom at 5 p.m. and will be on the Facebook page Midway Streaming Government Meetings.

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.”

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."

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."

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.

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.”

Mayor says he will use persuasion, 'market forces' to compel compliance in reopening, but not 'three strikes'

Elisha Holt does a Midway Business Association video about the Historic Midway Museum Gift Store, part of a series tied to retail reopenings, as co-owner Leslie Penn watches and Morgan Castle records. The store will reopen on a limited basis.

By Aaron Gershon
University of Kentucky School of Journalism and Media

The Midway City Council heard Mayor Grayson Vandegrift outline the city's game plan as several businesses are set to reopen this week with Kentucky’s covid-19 restrictions gradually being lifted.

Vandegrift also discussed his new “middle ground” budget, and the council approved three zoning-ordinance changes, in another council meeting held online due to the pandemic.

Reopening and enforcement: Vandegrift told the council that he has sent both digital and hard copies of the reopening guidelines from the Centers for Disease Control and Prevention to businesses, and expects workers and customers to follow them closely.

"We're going to be strict about this, as we should be," the mayor said, adding that violations of the guidelines should be reported: "Tipping ain't snitching." However, he said reports should be made to him directly via phone call, text, or email, not to police, who he said are busy enough already.

Vandegrift said “There are some things we can mitigate ourselves, just by talking to business owners,” who are responsible for controlling behavior in their premises. He said after the meeting, “The optics of having a police officer come to a business is not really something we want to do.”

Council Member Sara Hicks said she has had “some kind of scary experiences” in a Lexington grocery of people not wearing masks or keeping six feet apart, and asked Vandegrift “who is responsible for following those rules, besides the customers.”

He replied, "I do consider myself somewhat responsible for making sure the governor's guidelines are being followed. You know, we're not going to create a police state. . . . My approach is going to be this, that no restaurant and no shop wants to permanently damage their brand right now by being the place that created a virus farm."

He said customers will be expected to wear masks indoors, except when eating, but “We as a government can’t force people to wear masks,” so it’s up to business owners.

“Restaurants need to know that right now, their duty is heightened, in a sense,” he said. “They really, I think, need, and I think they will, step up to the plate and help enforce these guidelines, because they don’t want to be the restaurant that gets in trouble; they don’t want to be the restaurant or shop that gets shut down and loses their business license over, you know, infractions. They don’t want to be the restaurant known as the place that started an outbreak in a city that had zero confirmed cases. And I think in that sense, market forces can help keep them in line.”

The mayor, a former restaurateur, said he knows how hard it is to tell independent-minded customers that they have to do thing they don’t want to do, but should think of the mask rule as just the latest addition to the standard sign, “No shirt, no shoes, no service.” He added, “That mask is not to protect you, it’s to protect other people.”

Asked after the meeting what the penalties for violation would be, he said “I don’t think it’s going to come to a point where we have to do something drastic, like pull a business license.” He said he would use “open communication” and “honest dialogue” and give violators an opportunity to comply, but there is “not gonna be three strikes.”

Vandegrift said Midway’s experience would be “a bit of a case study” because it is a small town that attracts many visitors.

“Everyone's got to stay vigilant, using social distance, wearing a mask and using the proper hygiene to keep our numbers as close to zero as possible,” he said. No cases of the virus have been reported in Midway, but “I’m sure it’s been here in one form or another.”

Many visitors come to Midway’s restaurants, which can reopen Friday but with only one-third of their normal indoor seating capacity. Vandegrift said he would issue an executive order letting restaurants put tables in parking spaces that the city has designated for curbside pickup, and waiving fees restaurants normally pay to use their sidewalks to set up outdoor tables

He said the order will also allow alcohol sales at such tables, but he would not reinstate the "entertainment destination center" ordinance that allows patrons to carry open beverage containers between businesses. "I think we need to step slowly into this," he said. "I don't think it's the time to encourage congregation downtown."

Vandegrift said outdoor dining is safer than indoor dining. "Indoors has poorer circulation of air, and ventilation systems can pass covid-19 to others."

Restaurants will still be advised to encourage customers to use their curbside pickup, online ordering and delivery options.

“The restaurants and shops that adapt are the ones that will survive,” Vandegrift said. “No restaurant can survive on just 33 percent occupancy.”

Budget: With reopening on the horizon, Vandegrift discussed his recently revised "middle ground budget" that adds back some expenses he and the council agreed to cut when city revenues were more in doubt.

The “bare bones budget” cut almost $200,000 of spending from the mayor’s proposed budget for the fiscal year that begins July 1.

That is now “not necessary,” he said, mainly because the city’s largest employer, Lakeshore Learning Materials, had furloughed 225 of its 300 employees, putting a hole in the city’s largest source of revenue, the occupational tax on wages and net profits.

Now Lakeshore plans to bring back its full workforce in the next few weeks, and “expects to have a profitable year,” which it did not expect last month, Vandegrift said.

The company also expects to receive a certificate of occupancy in September for its second Midway distribution center, with that facility opening officially in March 2021, adding revenue from up 100 new jobs in the last quarter of the fiscal year.

Nevertheless, Vandegrift reduced his estimate of occupational-tax income for the next fiscal year to $737,500, down from his original estimate of $825,000. He said the city also expects less income from restaurants. The mayor proposed restoring these “bare bones budget” cuts, totaling $67,500:

●            $10,000 for training and travel for employees and elected officials

●            $7,500 in donations (including $5,000 to Court Appointed Special Advocates)

●            $25,000 for street paving, for a total of $50,000

●            $20,000 for the sidewalk cost-sharing program

●            $5,000 for a water fountain and refill station on East Main Street

Vandegrift said he would like to see the council find a way to restore the $30,000 originally budgeted for completion of the pavilion in the cemetery, because city employees have told him about older people having a hard time in bad weather at the cemetery, with few family members to help them. Beshear has limited funeral and burial gatherings to 10 people.

The council will work more on the budget during a special budget workshop meeting at 5 p.m. Tuesday, May 26.

Zoning: The council gave second reading and final passage to three zoning ordinances that will:

●            Allow fences in the front building setbacks along rights of way to be up to 48 inches high instead of 42; John Holloway voted no.

●            Limit display of banners for charitable activities for up to 14 days, with a 14-day waiting period for reinstallation; Logan Nance voted no, calling it “silly.”

●            Prohibit permanent location of recreational vehicles in flood plains. All council members present voted yes; Kaye Nita Gallagher was absent.

The changes, in the countywide zoning ordinance, are being approved by the Versailles City Council and the county Fiscal Court. Those bodies are also approving another change recommended by the Planning Commission, which allows signs to project up to five feet from fronts of buildings, with nine feet of head clearance.

With the council’s tacit agreement, Vandegrift did not ask for approval of that change. He said at the last meeting, “Our downtown is beautiful and pedestrian-friendly, and I feel that this could only lead to a cluttered and unnecessary look.” He said it is “the first time I can remember when all three bodies didn’t adopt the same amendment” to the countywide ordinance.

Other business: Holloway, the unpaid manager of Walter Bradley Park, said it will “probably have 20 times more visitors than we did this time last year for obvious reasons,” but “most everyone is really considerate of getting out of the way of other people.”

Nance and Vandegrift said they had noticed more dog waste in the park. Holloway said he is placing signs to encourage owners to pick up after their dogs, but “Some people just don’t want to.” He said a dispenser for pet-waste bags is located in the fenced dog park. 

Vandegrift announced that the city’s annual Memorial Day service would be held largely online, with readings of the names of veterans on the monument in the cemetery, beginning at 10:30 a.m. Saturday.

City council, mayor draft ‘bare bones budget’ in virus response, but delay final action; sidewalk projects cut

By Emmanuel Flemister
University of Kentucky School of Journalism and Media

The Midway City Council and Mayor Grayson Vandergrift cut 10.6% of expenses from the mayor’s proposed budget for the fiscal year that begins July 1, in a meeting held Monday in response to the coronavirus pandemic and its unforeseeable end.

Vandergrift called the special meeting to draft what he called a “bare bones budget” after the town’s largest employer and taxpayer, Lakeshore Learning Materials, furloughed 225 of its 300 employees.

 With a loss of occupational-tax revenue looming, the council and Vandegrift agreed on $195,500 in potential cuts from the $1.83 million in expenses he had proposed.

”Obviously, a lot of things have changed,” Vandegrift said at the start of the discussion. “I think we’re going to have to rethink the way we budget for next year. . . . I am very concerned about our revenues.”

The mayor’s original budget anticipated $825,000 in occupational-tax revenue, but he said that is no longer certain. “Originally I hoped we could bounce back in the new fiscal year,” he said, but now, “Even if things go better than expected, I just don’t think the economy is gonna be in full stride by July 1.”

Vandergrift and some council members were not too pleased with having to make these changes. “This is a painful exercise for me,” the mayor said. None of the budget cuts are final, since there are two budgets are in the works: the bare bones budget and the “status quo budget,” as coined by Council Member Logan Nance.

Before the meeting, Vandegrift had already subtracted $50,000, delaying the Stephens Street sidewalk project for a year.

The project would extend a walk to The Homeplace at Midway, and Vandegrift was hoping to make it part of a larger project to extend a walk to Walter Bradley Park, which would lead to Northside Elementary School, making the overall project eligible for a federal walk-to-school grant. He said City-Clerk Treasurer Cindy Foster said getting the grant would probably take a year anyway.

Vandegrift suggested, and the council agreed, to suspend the city's cost-sharing program for sidewalks, for which he had proposed $20,000.

Several other projects and expenses are on the list of proposed cuts:

• $30,000 for finishing the cemetery’s pavilion.

       At this, Hicks exulted, “My baby!” She has been on the forefront of the project.
       Vandergrift said, “You know Sara is serious about this when she talks about pulling out her biggest project.” He noted that the concrete base for the pavilion “isn’t going anywhere; it would not be a detriment to that project to be delayed a fiscal year.”
       He said $5,000 needs to remain for the cemetery’s fence: “It’s pretty bad in spots and doesn’t look too great.” This cut was the biggest made by the council.

• $25,000 of the $50,000 proposed for street paving. “You got to leave something there,” said Vandergrift, noting the possibility of small, unexpected paving projects.

• $18,000 from training and travel for city officials and staff, which was originally proposed to be $20,000, down from the current year’s $22,000. This will cut travel to Kentucky League of Cities conferences, for which the elected officials get incentive pay.

       “I think here’s where we really need to make a sacrifice,” Vandergrift said. “This is going to cost me, and it’s also going to cost the veteran council members $2,000, but you know this is a sacrifice we’re willing to make.” He said the remaining $2,000 might be needed to pay for webinars to receive training.

• $10,000 for donations, the same as the current year’s budget. Nance said, “Since we’re not bringing in money, we don’t need to be giving it out.”

• $10,000 from the proposed $20,000 for the coming year’s contingencies, which would have been the same as the current year. “These are the little things that come up that don’t necessarily fit in the ledger, but we decide we have the money to do them,” Vandegrift. We’re saying: less of that.”

• $5,000 from the $35,000 proposed for fire department salaries, which are budgeted for $28,500 this fiscal year. “This is a way to cut $5,000 without really hindering them,” Vandegrift said, adding that salaries were on track to hit $30,000 by June 30.

• $5,000 for the proposed public water fountain on East Main Street. “No one’s going to want to share a fountain anyway,” considering the pandemic, Nance said.

• $2,500 for park improvements, cutting that $5,000 budget in half. The council budgeted $12,500 on park improvements for the current fiscal year.

• $20,000 in City Hall maintenance. Brick tuckpointing was supposed to be done, perhaps with a grant; the proposed total budget for maintenance was $45,000.

The council tentatively decided to keep Vandegrift’s proposed 2 percent pay raise for city employees, and to not shop around for health insurance instead of accepting a 9 percent increase. “I don’t like the idea of messing around with the health insurance, especially at a time of uncertainty, so I think we’re gonna have to bite the bullet on that one,” Vandegrift said.

The council discussed cuts in the water and sewer budgets but decided against it since those are enterprise funds, generating their own revenue. “Believe it or not,” Vandegrift said. “we’ve already cut out a lot from water and sewer in the past.”

The council and Vandegrift agreed they need to be conservative with funds during the pandemic because it is uncertain how long it will last, and there may be a resurgence after the initial wave passes. 

Vandergrift voiced fears of what could happen if the state allows too many businesses to reopen too soon. “There’s a lot of political pressure to just go ahead and push through, but I think that would be a disaster,” he said. “I think it would be a disaster economically. It might end up hurting the economy more in the long run.”

He elaborated, “If you look at every other pandemic in history, it’s like humans keep making the same mistakes over and over again, they come out too quickly.” He even fretted, “If we aren’t careful, we’re going to eat all our surplus on covid-19.”

Midway is sitting on $1.2 million in unbudgeted surplus, and Vandegrift said he is “confident that Midway, pound for pound, has the healthiest city coffers of any city in Kentucky.” It’s important to note the bare bones budget isn’t final.

Council members and the mayor noted that they can amend the budget anytime. “We don’t want to get rid of this stuff, just put it on hold,” Hicks said. “Things are unsure at this time, and we should just make sure the city remains stable . . . and have money for emergencies.”

Council Member Bruce Southworth said, “Everyone’s got to make sacrifices.”He suggested that the council wait a few weeks to finalize the budget, to see “how this is going to last.” Vandegrift said the budget must be approved by June 22 to have it advertised in The Woodford Sun, thus taking effect, before July 1.

City Council adds downtown water station to budget, discusses alternatives for large sidewalk project

The Midway City Council added a downtown water station to the proposed city budget and discussed how to handle a much bigger project, new sidewalks, at its first workshop on Mayor Grayson Vandegrift's proposal for the fiscal year that begins July 1.

Meeting by online videoconference, the council approved a motion by Bruce Southworth and seconded by Stacy Thurman to put into the budget $5,000 for a water station on East Main Street, as suggested and priced by Logan Nance. He said it would have a standard fountain and spouts for water bottles and pet bowls. The city has a public water fountain only when City Hall is open.

In his initial budget proposal, Vandegrift proposed spending $50,000 to build a sidewalk on Stephens Street to Sexton Way, which leads to The Homeplace at Midway. Last week, he suggested waiting a year to find grants to expand the project to Brand Street, while assessing the financial impact of the coronavirus pandemic.

Today he said the pandemic's impact would be uncertain, but noted that the city was already expecting to exceed its occupational-tax forecast by $175,000. He said the city's largest employer, Lakeshore Learning Materials, gave 100 employees two weeks off with pay, and the second-largest, Midway University, is still working (though the campus and farm are closed to the public).

The latest price for the Stephens Street sidewalk is $75,000. Vandegrift said it would have to be built on the north side of the street, because drainage is on the south side, requiring a crossing, and would also require a "fairly long" footbridge over a low spot. Nance said a crossing with lights and signs would help slow speeders, long a problem on Stephens.

Black dots mark original idea for large sidewalk project.
(Google map, adapted) 

Vandegrift said, "We're probably not going to be able to find a grant," for the Stephens sidewalk, and that it would be more economical to have a later, larger project that would include Brand Street, reaching Dudley Street (where another footbridge would be needed) and tying into Walter Bradley Park trails leading to Northside Elementary School. That would qualify the project, or at least part of it, for a Safe Walk to Schools grant, he said.

Thurman said she saw the logic in a combined project, but "We have to really let people know the big picture if we’re gonna put it off a year." Nance said waiting would save $25,000; Vandegrift agreed, noting that the grant would cover 80 percent of eligible costs.

"Part of me thinks we should build the one on Stephens and look for grants later on." Vandegrift said.

John Holloway questioned whether there is room for a sidewalk in the railroad underpass on Brand, and suggested that the grant application could say the route to the school is via Gratz Street, which already has sidewalks. Vandegrift said the engineer he consulted wasn't certain the underpass is wide enough, and the Gratz route could be an option.

"I’d like to see that sidewalk as quickly as possible," Vandegrift said, but "I was worried we might not get the best bang for our buck . . . Going to Gratz might be way smarter. . . . We can do either one."

The mayor agreed with Kaye Nita Gallagher's suggestion that if the project needs extra money, some could be taken from the $25,000 snow-removal budget, most of which has not been used, except to stockpile salt.

The other major point of discussion was the proposed budget of $30,000 for attorney services, up from $21,000 in the current year. Questioned by Nance, Vandegrift said new city attorney Sharon Gold is one of the best lawyers in the state and is charging the city $274 an hour instead of her regular fee, which is more than $300 an hour.

Vandegrift said part of Gold's work is done by lower-priced associates, and the city has less work for its attorney than before because he has six years of mayoral experience and new City Clerk-Treasurer Cindy Foster can write ordinances.

In other business, the council approved a resolution commending Gov. Andy Beshear for his response to the coronavirus pandemic, citing "great leadership" that has been "nonpartisan," a "swift response and a "calm demeanor" in his daily updates, and actions that "protected the most vulnerable" and encouraged citizens "to maintain good social distance and personal hygiene." Vandegrift said the resolution was suggested by an unnamed citizen and written by Nance.

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)

Mayor looks back at a year of improvements in Midway, suggests others to be made with booming tax revenue

By Garrett Burton
University of Kentucky School of Journalism and Media

Monday’s City Council meeting was almost entirely dedicated to Mayor Grayson Vandegrift’s annual report, looking back at what had been accomplished in Midway the past year. 

This was “the year we truly put our money where our mouth is in making large investments in our infrastructure . . . but we can’t rest on our laurels,” Vandegrift told the council, suggesting ways the council can use its booming payroll-tax revenue to make more improvements.

“Tax revenue created from new jobs is growing, and that it’s steadily improving our city’s fortune and future as it grows,” the mayor said, announcing that “We are 29 percent ahead of our occupational-tax revenue for the fiscal year, putting us on track to generate $838,000 this cycle.”  The city budgeted $650,000 in occupational-tax income for the fiscal year that ends June 30.

The tax revenue from wages and profits has boomed mainly because of the Lakeshore Learning Materials distribution center, and further job growth will be led by expansion of the center, with 100 new jobs, announced in September. Vandegrift said this puts Lakeshore’s total investment the Midway at around $75 million.

In the only major action at the meeting, the council passed an ordinance authorizing $35 million in industrial revenue bonds for the expansion. The bonds will be paid off solely by Lakeshore’s lease payments to the city, which owns the property. That makes it tax-exempt, but Lakeshore will pay the county schools an amount equal to what it would pay in taxes.

“They will eventually employ at least 362 full time workers in Midway, far and away the largest job provider the city has ever had, and one of the largest in the county,” Vandegrift noted.

The mayor said “2019 saw us create over 225 more jobs in Midway,” and with other jobs expected from businesses that have bought lots in Midway Station, ”It won’t be long until our annual occupational tax revenue is exceeding 1 million dollars. For reference, back in 2015, we were bringing in $300,000.  That is the effect of bringing in 500 new jobs in five years.”

The city used the new revenue to make improvements, including a sidewalk-repair cost-sharing program.  “Of every project we’ve implemented in the last five years,” Vandegrift said, “none generated the number of compliments we received from citizens than this one.”

He said the city “should look seriously” at building new sidewalks “where they are needed and where they are possible,” such as East Stephens Street near the Homeplace at Midway, Leestown Road (US 421) and “the US 62 bypass,” officially Midway Road. He noted that sidewalks on the latter two would “require state input and/or participation.”

When East Stephens Street was repaved, it also got new lines in the center and on its edges.

Other infrastructure improvements this year have included the wastewater treatment plant and improvement this fall of East Stephens Street, including “edge lines which early eyewitness reports indicate are slowing traffic,” Vandegrift said. “It is time we create a five year road plan for a priority list of which roadways should be resurfaced soon,” he said, such as Higgins, Bruen and Gratz streets.

"Money is budgeted this fiscal year for a sewer repair project “that will mark a turning point for us in our efforts to combat aging infrastructure,” the mayor noted.

He said a “decades-long grievance about Midway,” its high water rates, could be ended by switching to a new water wholesaler in 2015, when the city’s contract with Kentucky American Water Co. is up. “Frankfort Plant Board is an obvious and strong candidate for our business because they can sell us equally clean water at a rate 40% cheaper,” he said, but “as other players come to the table, we should hear them out as well.” He said “wholesalers within our own county” are interested.

After the meeting, he said the interest is from the City of Versailles, which already supplies water to the Northeast Woodford Water District, but it’s unclear whether the water would come directly from Versailles or through the district’s lines.

The mayor ended his annual report by thanking city employees, whom he called “the unsung heroes of Midway.” Earlier, he thanked the council members, the Midway Business Association, Midway Renaissance and the city Parks Board for their work.

“I look forward to continuing to work together with you to maintain Midway’s status as a city that defies all expectations,” he said.

Earlier, noting that Versailles and Georgetown have followed Midway’s lead in banning discrimination in housing, employment and public accommodation on the basis of sexual orientation or gender identity, he said, “Don’t ever let anyone tell you that because a city is small that it somehow matters less.”

All council members applauded at the conclusion of the report, which can be read in full here.

Other business: Vandegrift said the long-debated ordinance to crack down on blighted property, which he has been trying to get passed since his election in 2015, should be ready for first reading at the Dec. 16 meeting.  He said he plans to have the second reading and final vote Jan. 6, but a special meeting if there are further questions.

 “I firmly believe this is the only way to tackle the problem of blight and abandonment,” he said, “and the current version is a great example of cooperation and compromise.”

Council Member Logan Nance asked that the council discuss the policy of shutting off water users for nonpayment, policy he said in September should be abolished. Vandegrift said the issue is “next on the agenda.”

City Council votes to make Midway debt-free

Midway, call Dave Ramsey. You're about to be debt-free, just like those happy callers to his financial-advice radio show.

The City Council voted Monday night to pay off the city's remaining debts, totaling about $184,000. "Anytime you can be debt-free, it's good," said Council Member Bruce Southworth, who made the motion for the payments.

Mayor Grayson Vandegrift said City Clerk-Treasurer Cindy Foster suggested that the city pay off its remaining two debts, $176,311 for a sewer project and about $8,400 on a fire truck. He said the city's "number are good, and they're going to get better," with jobs to be added at Midway Station. "We've got more than enough rainy-day funds."

Nationally, local-government "rainy day funds" average about one-third of spending, according to a 2013 article in Governing magazine. The City of Midway's bank balances total $1,182,490, according to a list Vandegrift provided. Its budget for the fiscal year that will end June 30 calls for General Fund appropriations of $1.9 million and a projected surplus of $488,601. That surplus is expected to be larger.

The city's finances have been boosted by its occupational tax on wages and net profits, mainly through the approximately 250 jobs created at Midway Station by the Lakeshore Learning Materials distribution center, which is starting an expansion that is to add 100 more jobs.

Vandegrift said the city collected about $300,000 in occupational taxes in 2015, the first year he was mayor, and "It's only a matter of time before our occupational-tax revenue is $1 million a year." In response to a question from Council Member Stacy Thurman, he said he didn't see any downside to paying off the debts and eliminating the city's interest payments.

In other business, the council heard first reading of an ordinance for an industrial revenue bond to finance the Lakeshore expansion. In an arrangement typical for local governments, the city will take title to the property, thus exempting it from property taxes, and lease it back to Lakeshore. (The company makes payments to the county schools equal to the amount it would pay in taxes.) The lease payments will be the sole source of revenue to pay off the bonds, and "The city's not pledging its taxing authority," Tim Eifler, a Louisville lawyer representing Lakeshore, told the council.

"Lakeshore's already turning dirt," Vandegrift noted earlier.