The Versailles City Council voted to move forward with the issuance of a $5.4 million bond to finance the installation of a Standardbred training center to be developed by Standardbred Group, LLC. The vote was 5-1, with Councilmember Gary Jones casting the only “no” vote. 

During the discussion of the ordinance, Jones said that while he supports the project, he would like to see the principles and financial statements of the people who will be responsible for the bond-funded project before voting on this.

“We’re representing the city and the city is going to be responsible for this and we’re blind as far as I know,” he said. “I have no idea who we are lending money to. I mean you can’t go to the bank and borrow $5 million without the bank knowing who’s borrowing the money and financials. And, we’re being asked to do that.” 

He later added, “I’m for the project. I think the project is good. I think it’s good for the community. I really do. I’ve been for it since day one. I just would like to know a little more about what we’re dealing with before I vote for it.” 

Jones reiterated his concerns to the Sun after the meeting, stating, “The only reason I didn’t vote for it was because I felt like I didn’t have all the information to make a legitimate vote for positive.”  

Alex Riddle, a Versailles native and businessman who is involved in several downtown Versailles economic development projects and the primary partner in the project, told the City Council that “our financial statements and projections have been given to the bonding agencies for purpose of selling the bond.” Later adding that it is his understanding that it is First Kentucky Securities and Stan Kramer’s job to gather that information and protect the city’s financial interests. Kramer has been retained by the city for this purpose. 

Ruth Webb, with First Kentucky Securities, said they were also concerned about this issue and that there were several protections in the agreements to address them, including a credit analysis by Moody’s that will come in the week before the sale is finalized on June 6. “They won’t give us a credit rating unless they’re satisfied with the ability to repay the debt,” she said. 

Further, she said when the bonds are sold, they are sold to underwriters who will do their due diligence to see if it is worthy of their investment. And, she said the investment group will be required to make their payments 30 days before they are due, allowing time to step in if there is an issue. There will also be a debt service reserve account available in case a payment isn’t made. “So there’s several different layers of protection going on,” she said. 

Councilmember Lisa Johnson asked that there be regular reporting requirements as part of the agreement. 

In 2020, the City of Versailles purchased a 337-acre tract of land on property that is known as Edgewood Farm for about $6.3 million and 135 acres of it has been permanently zoned agricultural. The city ordinance states that the training center, with a capacity to house up to 700 horses with a barn and paddock, will be built on  approximately 134 acres of that land. 

Scott White, managing editor of the Sun, explained in a May 16 op-ed supporting the training center that: “The core of the deal is that the city will continue to own the land and enter into a lease-purchase with VSG (Versailles Standardbred Group). The city will issue and sell general obligation 20-year bonds raising $5 million which will assist VSG in capitalizing the project. . . . . Riddle expects the group to retire the debt by purchasing the property well within 20 years. This means the city recoups its entire investment.” 

Housing affordability

Paul Schreffler, a member of the Housing Affordability and Attainability Task Force, gave an update on the task force’s findings and said there would be no hard recommendations made at this time. 

Schreffler went over a Bowen National Research analysis, titled Kentucky Housing Supply Gap, that was commissioned by the Kentucky League of Cities. The report provides county data as well as state data about this issue and can be found on the KLCs website. 

Schreffler said the report shows Woodford County doesn’t have enough housing supply and that this needs to be the focus for solutions. Further, he said the county has 11 percent of renters and 6 percent of owners that spend over 50 percent of their income, which is considered a “severe cost-burden” to those families. 

The report says the county needs 1,200 housing units, including 449 rental units and 714 “for-sale” units. 

“Bottom line, that data shows that both workers and employers are concerned about this housing shortage and houses are where the jobs go to sleep at night,” he said. 

Some of the possible suggestions, he said, are to update land use policies and decisions, to examine current zoning policies, to encourage development projects that meet market demand, to identify available land for development and to support local community revitalization efforts.

When it comes to zoning changes, he said it would be helpful to allow slightly smaller minimum lot size and to permit manufactured housing, which are not trailers. Instead, they sit on a foundation and have the appearance of a “stick-built” home. It was also said that they appraise similarly to “stick-built” homes once they are in place. 

Schreffler said one possibility would be to create a pilot project that would allow one manufactured home to be built so that residents could see what they look like. 

Ordinances, municipal orders, 

resolutions, zonings

The City Council gave final approval to an ordinance to restrict the planting of trees and shrubs in cemeteries unless approved by the cemetery superintendent and performed by city employees or contractors. 

They also gave first readings to several budget ordinances for Fiscal Year 2024-2025, including the General Fund Budget, the Enterprise Fund Budget the Municipal Aid Road Fund Budget and the 911 Fund Budget. 

The council passed over an ordinance regarding the certification of recovery residences with plans to discuss it at a later date. Ordinance 2024-15, dealing with zoning, got a first reading. 

They also passed a municipal order amending the city’s personnel policy and a resolution dealing with the municipal aid road fund.  

The council noted the zoning map amendment for Bluegrass Railroad Museum from A-1 to A-1 and B-1 (Neighborhood Business and Mayor Brian Traugott said they will eventually need to “accept the record or not”. 

 They also “accepted the record” and waived the right to a public hearing for the zoning map amendment for CH Holding Co., LLC at 140 Park Street from CO-1 to B-2 (Central Business). This amendment will stay on the agenda. 

Door-to-door salespeople

Salespeople who come to your door must be wearing a lanyard that has their photo on it, along with the city logo. This means that they have had a background check and have paid their fee to solicit door-to-door. 

Versailles Police Chief Mike Murray encouraged people to call the police if someone is knocking on doors so that they can verify that they are legit.