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."

Mayor names committee to study rising property valuations and how a tax-rebate program might work

By Aaron Gershon
University of Kentucky School of Journalism and Media

Midway Mayor Grayson Vandegrift has formed a committee to consult with tax experts and look into a tax-rebate program as property valuations are rising in the city, which usually leads to a rise in property taxes.

Logan Nance

The committee, at least for now, is City Council Member Logan Nance, Woodford County Fiscal Court Magistrate Liles Taylor of Midway, and Midway Business Association President Cortney Neikirk. They will study the rise in valuations and consult with tax experts, including local ones, then present their findings and offer recommendations for action to the council.

In his email to the council and the Messenger, Vandegrift didn’t explain what a tax rebate program might look like. “I’m being purposefully vague because I think the committee should hammer out the details,” he wrote.

Liles Taylor

Cortney Neikirk

He said valuations are rising due to lack of housing supply to meet demand, and the fact that the city's valuation hadn't been assessed for four years before its housing market "really took off."

He said county Property Valuation Administrator Judy Bobbitt told him she divides the county into four quadrants that are each reviewed every four years and assessed at fair market value, based mainly on comparable sales in the area.

Vandegrift quoted from Bobbitt’s email: “The market is definitely up right now. Most likely four years ago there was not an increase in sales, like this year.” She said homeowners should watch nearby sales to compare with their valuation, and “If they don't agree with our assessments please give us a call and we will be happy to review with them.”

The mayor said he had been told an "anecdotal story about a home whose valuation rose by $90,000. I doubt that's the norm, though."

With many already dealing with financial hardships amid the covid-19 pandemic, Vandegrift said he wants to avoid a rise in property taxes. He said the pandemic “has accelerated our plans to tackle the issue and help prevent folks from struggling to keep up with the taxation associated with higher values."

He said one possible solution would be to reduce property taxes, “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." Midway's real-estate tax rate is now about the same as the rate in Versailles.

The next City Council meeting is scheduled for 5:30 p.m. Monday, via Zoom.

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

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

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

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

By Grayson Vandegrift

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

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

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

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

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

Mayor says city will levy fines against Columbia Gas for closing part of Main Street without encroachment permit

Outdoor work on 116 E. Main started June 30.

Midway Mayor Grayson Vandegrift says the city will levy fines against Columbia Gas for causing closure of the north side of East Main Street today.

"The work violated city ordinance, disrupted Friday traffic downtown, and burdened businesses such as restaurants, who rely on gas for their operations," Vandegrift said in an email. "We are starting the process to levy fines on Columbia Gas for violating our ordinances."

The mayor said the word was done without an encroachment permit allowing access to the city's right of way. "Encroachment permits are required of every citizen, every property owner, every utility company before cutting into city owned streets," he wrote. "We need to know before such action is taken and need to approve it so that we know the work to be done, and to have assurance that the replacement of the pavement will be to city specifications."

Vandegrift said a Columbia Gas supervisor told him that the work was being done "on behalf of 116 East Main Street," site of a historic but long-dilapidated building now being renovated by owner Ness Alamdari of Lexington under orders from the Woodford County building inspector.

"As to Mr. Alamdari, this is living proof of what we have been dealing with for more than four years," the mayor wrote. "For whatever reason, Mr. Alamdari continues to attempt to go around the city, around Planning and Zoning, and around any local law he can for his own purposes, despite the will and laws of our citizens."

Summing up, Vandgerift said, "Columbia Gas should have known better, and therefore should pay the penalty for doing such work without going through the process we as a city require. This behavior will not and cannot be tolerated. The interests of one person do not supersede the interests of the city and the people we work for."

Owner of 116 E. Main St. begins outdoor renovation

Ness Alamdari of Lexington took a rest Tuesday afternoon after helping a worker put up a scaffold in front of his historic but condemned building at 116 E.Main St. Alamdari is under orders to repair the building by Oct. 31 or risk having it torn down as a safety risk. He told the Messenger the outdoor work was preceded by some interior work.

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."

Owner of historic building has until Oct. 31 to fix it up

116 E. Main St. in January 2019; little has changed.

By Emmanuel Flemister
University of Kentucky School of Journalism and Media

The owner of the condemned building at 116 E. Main St. has until the end of October to fix up the rundown landmark or face the likelihood of the city tearing it down.

Woodford County planning and zoning officials had given Ness Alamdari of Lexington until March 30 to correct 10 issues with the building, as cited by Building Inspector Joshua Stevens on Feb. 10.

The deadline was extended to Oct. 31 after a consulting engineer for Alamdari submitted a letter, dated March 17, saying that the structure was stable. That headed off a possible order of demolition.

Mayor Grayson Vandegrift told the City Council and the news media March 24, “At the end of this extension, he must have the property approved by a certified engineer, who in turn would be taking liability for the structural integrity of the building.” The property has become a “threat to public safety,” Vandergrift said earlier.

If Alamdari fails to meet these requirements, the process becomes “very burdensome for him,” said Vandergrift. “He would essentially have to start the process over with the Board of Architectural Review,” which set conditions for renovation of the property soon after Alamdari bought it in 2016. “If he fails in these obligations, I will be pushing for condemnation.”

Alamdari is still operating under a building permit that was issued in April 2018 and listed the cost of repairs at $20,000.

The property has been a trouble spot since at least 2006, according to Planning and Zoning Commission records. Vandegrift asked for the Feb. 10 inspection. “As a government, we were very patient with him for a long time,” he said in March.

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

“I think I took the diplomatic route and probably was erring on the side of patience, just trying to make sure we were working with him,” the  mayor said.

The building was erected in 1898 by the Pilgrim Lodge of the Odd Fellows, an African American men's organization. Local historian Bill Penn, a nearby store owner, said it was last occupied 15 to 20 years ago. It is a landmark in Midway’s African American community, but is also one of the most prominent examples of blighted property in Midway, due to its downtown location and severe condition.

The mayor said he would take no pleasure in demolition of a historic stricture, but “I have been inside the building, and like so many others have watched as time and weather continue to deteriorate it . . . I came to believe that condemnation is the only solution.”

Vandegrift said that if the situation isn’t resolved by Oct. 31, one last alternative to demolition could be putting the property the city’s list of abandoned urban properties, which would be done by the city’s new Code Enforcement Board. The list is due to the City Council for review by Jan 1, 2021. Properties on the list are taxed at a much higher rate.

“If this building didn’t have such historical significance, I would likely disagree with this step,” he said. “But if one last-ditch effort to save this structure is what it takes, then we’ll proceed with a keen eye and a stern voice. We will continue to ensure that the citizens of Midway will not be taken advantage of, but we will also willingly follow the letter of the law in both protecting the rights of owners and the safety of our residents and visitors.”

Bradley brothers buy land on Northside to build homes; will seek annexation of enclave that's not in city limits

Google map, with some labels added, shows undeveloped area around Graves home. See map below for correct city limits. 

Seven and a half acres in the middle of Midway, but not actually in the city, have been sold for a residential development.

The purchase was made Wednesday, June 17, by Mike and Scott Bradley, sons of Chuck and Shirley Bradley of Georgetown. Family members owned and operated the Midway Corner Grocery for 41 years, until January, when Scott and his wife Susan sold the business.

The property to be developed lies between the grocery and Northridge Estates. It was the remainder of the Fisher farm, more recently owned by Jack and Debbie Graves, according to a press release from Northside Homes, the limited-liability company formed by Mike and Scott Bradley.

Mike Bradley told the Messenger that the purchase covers 10.5 acres, but almost three acres is unusable because it is a drainage-detention area for Northridge. In addition to the main parcel of 7.3 acres, which includes the Graves home, it includes a small lot next to the grocery, he said.

Bradley, a real-estate agent, said he and his brother will be the developers, and will probably partner with another company once lots are platted, probably in a "about a month or so."

Zoning map shows property isn't in city limits (red line).
For a slightly larger version of this map, click on it.
For the complete city limits map, see below. 

The property is already zoned single-family residential, but it is not in the city limits, although it is surrounded by the city. Bradley said they would seek annexation, and said Mayor Grayson Vandegrift has told him that he favors annexation.

Vandegrift said in an email, "If the development gets through Planning and Zoning and the council passed it, my policy is to annex, or else we would not provide services. If we’re going to be providing the infrastructure we might as well get property taxes and clean up our map as well as make sure those potential future citizens aren’t left to feel like black sheep."

Asked earlier to comment generally on the Bradleys' plans, Vandegrift said, "This is obviously a big and complicated issue that I’m sure many of our citizens will be keenly interested in learning more about and giving feedback. I don’t want to make any statements of support or dissent until I can see the plan specifically, know exactly how many homes we’re talking about, whether more water retention will be necessary, and hear from our citizens as to they want. But we all knew at some point we were going to have this conversation again. Looks like we’re about to start."

The press release said, "One of the more important, broader goals of Mike and Scott Bradley is affordability while ensuring the neighborhood fits the design and feel of the Midway they came to love since their family moved from Los Angeles in 1979" to take over the grocery. "All five of the siblings would eventually work in the store."

Mike Bradley's wife, real-estate agent Missy Bradley, said in the release, “Whatever the final design of the neighborhood is, I want to make it truly a part of Midway, something my mother would be proud of, something young families could afford so they could enjoy growing up in Midway as much as I did.” Her mother was the late Betty Bright, Midway's first female City Council member. 

Mike Bradley said in the release, “We will work hard to come up with a design befitting Midway, and one that will remain as attractive in future years as it will be new; affordable housing designed for individual owners, attractive smaller homes with very nice finishes.”

The residential development will be the largest in Midway since the mid-1990s, when Northridge Estates was completed. There is a great demand for affordable housing in the city, to the extent that the city has an Affordable Housing Committee looking at the issue. 

City Council Member Stacy Thurman, who chairs the Affordable Housing Committee, said in an email, "I am cautiously optimistic about this, but I don’t have enough details yet. I’m anxious to hear about the number of homes and the price range. This could be a good opportunity for modest and manageable growth in Midway. It will be interesting to see!"

Vandegrift provided this map of the city limits:

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.”

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

By Aaron Gershon
University of Kentucky School of Journalism and Media

The Woodford County Economic Development Authority board spent much of its Friday meeting discussing the best way to replace longtime chairman and executive John Soper.

The board also began the process of turning over the green space around the edge of Midway Station, awarded a contract for marketing the industrial and commercial park, and discussed relations with the adjoining landowner who has been its main collaborator recently.

Adjoining property: The EDA had an option to buy 104 acres next to Midway Station from Michael Freeny, but Soper said Freeny doesn't want to renew the option until he has a better idea of its worth.

Soper noted that the property hadn't been annexed and zoned industrial when EDA obtained the option in 2017, and that Freeny has since sold part of it to Lakeshore Learning Materials for its second building. He said Freeny wants to know the cost of building a road through a narrow strip that connects the two sections of the property and would provide access to South Elkhorn Creek.

"I expect that road will cost every bit as much as what he paid for that lot or more," because it will have to be built to city specifications so the city can accept it for maintenance, Soper said. "As far as I know Mr. Freeny is still willing to honor his commitment for access though that property to the creek," which the city wants for recreational purposes. He also said that Freeny knows EDA and the city are his conduits to state economic-development officials.

Midway board member Michael Michalsin said he expects "good dialogue" with Freeny because "He's very easy to work with. . . . I'm happy to stay in close touch to him as is useful for the board."

Transition: Soper, who's been on the board for about 20 years and has been its paid chairman for the last few, will be stepping down after his term ends June 30, leaving the EDA in need of a game plan for leadership.

The board agreed that the "most desirable option" would be to hire a full-time director, but concluded from research that option would likely be beyond its budget. Soper gets $60,000 a year, funded pro-rata by Midway, Versailles and Woodford County.

The board is considering four other options, according to a document distributed by Treasurer Maria Bohanan after the meeting:

● Part-time independent contractor (hired by the three governments, with duties directed by them): This option would “more than likely” be less than the cost of Soper’s contract but raises concerns about the contractor not being readily available as a full-time employee would, and that there could be potential for conflicts of interest.

● Full-time independent contractor (hired by the governments, with duties directed by them): This option offers more consistency in the EDA's messaging and relationship-building, and would establish a “go-to person for all stakeholders in the community, including planning and zoning,” but may be too expensive and could lead to a difficult recruitment and evaluation process. The document also questions whether a full-time person is needed, since a real-estate agent has been hired, but a big “variable” is possible development of the Edgewood property at Versailles, which is tied up in court.

● Third-party entity (hire a firm to handle EDA's needs): This option offers “administrative staff and a strong Rolodex,” would probably cost less than Soper’s contract, and could attract competitive bids from firms “likely eager for business in this environment,” the document says.

● Creating a position as a public employee: This option could make it easier to provide direction but “is problematic due to which entity and whom the individual would answer to,”and would require extra taxpayer funding for retirement benefits and health insurance.

In another element of the transition, the board discussed Soper’s suggestion that the treasurer receive some compensation, which could require a change in the EDA by-laws, which say members will serve without compensation except expense reimbursements but say the “secretary-treasurer,” a position that is now split, can be paid.

The board directed Bohanan to include in the budget for the upcoming fiscal year $4,500 for compensation of the treasurer and/or secretary and a Dropbox subscription to facilitate electronic communication. Soper said he would ask attorney Bill Moore about the need for a by-laws change.

Midway Station agent: The board approved SVN/Stone Commercial Real Estate Advisors to serve as its agent for Midway Station, part of the transition from Soper’s impending departure.

The board and Matt Stone of SVN agreed that selling land in Midway Station is not just about creating jobs but maintaining Midway's character.

Soper said, "The EDA is about jobs and about representing what the taxpayers want, and it's not just about selling land." Stone responded that SVN is not about "pushing a deal through to get some sales done."

Stone said SVN will boost Midway Station’s web presence and advertising, with aerial photos. He said that unlike many commercial firms, it splits commissions with agents for buyers, meaning “We’re employing the entire brokerage community, locally and nationally.”

Asked by Soper how Midway Station’s $65,000-an-acre price compares with other ready-to-use industrial property in the region, he said “It works very well” because the range is $35,000 to $85,000, “but in Lexington you’re dealing with prices that are six figures.” He said he has seen transactions of $75,000 to $85,000 in Georgetown, which some buyers prefer because it is on Interstate 75. “I think we compare well to Georgetown.”

Land transactions: The board authorized Moore to prepare a deed to the City of Midway for the Midway Station tract on which the city’s functioning water tower stands, and to prepare an option for the city to take ownership the 38 acres of greenspace that surround Midway Station, in return for the city agreeing to forgive $500,000 to $750,000 of debt owed by the EDA, not all of which is considered collectible. Both moves have been anticipated for many months.

The EDA also owes the county money, and Magistrate Mary Ann Gill asked if there would be “any effort to compensate Woodford County.” Soper said, “If there was money there, I think that we could,” but “If we can get out of this with paying off the debt … and putting the finishing cap of surface on those roads … I cannot conceive that there’s any cheese left in this trap.”

Midway Mayor Grayson Vandegrift reminded Gill that the county did not participate in the $450,000 financing of a larger natural-gas line for Midway Station, which constitutes most of the debt and “really improved the park’s chance of selling land.”

Soper said the legal instrument from EDA to the city needs to be an option, not a deed, because releasing the mortgage on that part of the property without any direct monetary compensation might be a problem for the banks that hold the mortgages. He said that would “give Midway control of the land without going to the bank and asking them to release it … until after land sale,” which he said would be “A better time to release without any consideration.”

Soper said the city’s “intent to make some or all of it a park” will enhance the value of Midway Station. Vandegrift said it won’t be a park as such, “but a greenspace. Midway is such a picturesque city, we want our industrial park to be as picturesque as an industrial park can be.”

Mayor says 'rude subcontractors' broke gate locks, allowed animals to escape and painted willy-nilly

Image from MetroNet video shows temporary paint used to mark existing utility lines. Mayor Grayson Vandegrift said employees of a MetroNet subcontractor painted the lines on personal items in yards, broke gate locks and let animals escape.

By Aaron Gershon
University of Kentucky School of Journalism and Media

Mayor Grayson Vandegrift says he has warned MetroNet, which is installing high-speed fiber optic cable to every home in Midway, that he will not tolerate what he called "rude subcontractors."

Vandegrift said residents reported that workers locating existing utility lines Tuesday broke padlocks off a few residents’ gates; left several gates open, allowing animals to escape; and spray-painted line markers over personal items in yards rather than leaving a small gap in the line.

"While these were not employees of MetroNet, but rather other utility companies, I still hold MetroNet responsible, as it is their project," Vandegrift told the Messenger. "If they want to follow up with the utility companies that didn't act in good faith, so be it, but we can't allow the blame game."

This is not the first time he has heard MetroNet has been called out for rude subcontractors, the mayor said.

"I've heard many rumblings of ham-handed subcontract work by residents in Lexington and Versailles," he said. "I want to avoid those stories here. I believe so many of these issues could be solved by communication, and I was disappointed I wasn't contacted by MetroNet before the locators began on Tuesday, as I could have warned residents to unlock padlocks and beware of locators needing to access their property.

Vandegrift said he had a productive conversation Thursday morning with MetroNet's executive regional vice president, government-affairs liaison and its project manager to help clear the air.

"I believe they understand that we are a city that prides itself in keeping our residents in the loop at all times,” he said, “and that we'll demand that employees and subcontractors be respectful and communicate with residents as well."

The mayor said he made it clear that during the current trying times, there's no room for disrespecting the properties of Midway residents.

"During a pandemic, when people are more stressed, and in some cases already feel overburdened by government right now, it is important that folks feel that people entering their property are respectful, as little intrusive as possible, and that bury utility lines with respect to people's gardens and personal property as best as possible while properly using the utility easements," he said.

He added later, "They were very receptive to the sensitive nature of the current circumstances, and I believe they will make sure this kind of thing doesn’t happen again."

The mayor acknowledged that there is little he can do but object. He said he could use his emergency powers under the pandemic to "exclude all nonessential, unauthorized, disruptive, or uncooperative personnel from the scene of the emergency," but that would only delay installation, "and I certainly don’t even want to have to go there. I did want to get their attention, and luckily I did."

Vandegrift said he remains confident that the project will end up being a boon to the town and bring much-needed improvement for telecommunication services in Midway, as early as August.

"I believe firmly that MetroNet will bring a much needed new competitor to our city for internet, phone, and television,” he said. "Their use of fiber optic line is a true 21st century technology that will be here for a long time."

Vandegrift said MetroNet is “very committed to restoration” and has promised these steps for better service going forward:

●  Use the “path that is least intrusive” within the easement, and two feet from existing utilities, to avoid disrupting service.

●  Do anything they can to go around trees, gardens, or other personal items.

●  Residents can call two different numbers with any concern. MetroNet will open a “ticket” with each call to track progress and fix any issues.

●  When a trench is dug to bury cable, they will seed and straw. If they don’t do it to your satisfaction, you can call 859-785-1107 or 1-877-386-3876 and they will do it to your liking.

●  If a planting of any kind is disrupted, they will replace it to your specification.

●  If a garden is in the easement and they can’t go around it, they will bore underneath, to avoid tearing it up.

●  Subcontractors will be briefed and reminded on a regular basis that in general, everyone is more stressed now than usual, so they need to be mindful of that.

●  A local man, Doug Haney, will be in charge of local engineers and overseeing the subcontractors, and will be someone who can assist you with any issues.

●  As any issues arise call either 859-785-1107 or 1-877-386-3876; both are customer service lines, and MetroNet is committed to making residents satisfied once this more intrusive phase is over.

Vandegrift said he urges anyone to contact him directly if any issues occur.

MetroNet has a short video describing the installation process at https://www.youtube.com/watch?v=Ca30L1RAMNI&feature=youtu.be&app=desktop. 

Mayor says condemned landmark likely to be torn down

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

By Emmanuel Flemister

University of Kentucky School of Journalism and Media

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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