By Bob Vlach

Woodford Sun Staff

The pending purchase of the Yokohama industrial property by the City of Versailles and Woodford Fiscal Court was described by county Judge-Executive James Kay as “a critical project for growing jobs and opportunity in our community.” Kay made that comment at the Woodford County Economic Development Authority (EDA) meeting on March 27, when he also addressed what he described as “misinformation” published in The Woodford Sun after the last Fiscal Court meeting on March 24.

Kay began by voicing his displeasure with what he termed “wholly inaccurate” comments made by county Magistrate Mary Ann Gill in a text published in the March 26 edition of the Sun that stated bond interest payments must be made for a minimum of two years, even if it sells immediately.

“The reality is if we sell this property early, we are able to reinvest funds in state and local and municipal bonds in order to cover the interest costs that we would’ve ultimately paid or lost in the deal,” Kay said.

Kay also disputed an assertion by Gill that the carrying cost (about $300,000) to maintain the property “far exceeds the potential occupational tax income if a company buys it in a timely manner, and if they are able to follow through on job creation.”

During the EDA’s Feb. 27 meeting, Kay said the Fiscal Court received about $250,000 in occupational tax revenues from Yokohama in 2022, $270,000 in 2023, $250,000 in 2024 and $128,000 in 2025 when Yokohama started cutting jobs as they began the moving out process.

The most egregious comments published in the March 26 edition of the Sun were Gill’s comparison of the Yokohama acquisition with the cost and decades it took to sell lots in Midway Station, according to Kay. He noted that giving the EDA control over that industrial land brought in jobs, tax revenue and “some of the best industrial partners that we helped recruit and bring to Midway Station,” including Lakeshore Learning and American Howa.

The danger of the city and county not acquiring an industrial property like Yokohama, according to Kay, is what happened when Sylvania and Ledvance sold their facilities in Versailles at “a very low price” to a private equity firm, which leases the industrial property for a warehousing distribution facility that generates “little to no occupational tax, little to no net profit tax.”

“… People forget the success of acting,” EDA Treasurer Maria Bohanan said, “when the City of Versailles bought the Texas Instruments building and … recruited and … got KCTCS (the Kentucky Community and Technical College System).”

“Doing something out of the box is risky,” she added, “but also not forging your own destiny is risky also.”

Noting a desire among locals to save agricultural land, EDA member Austin Wingate, also the Woodford County Farm Bureau agent, said if the Yokohama property is not acquired for redevelopment, there would be a need for other land to bring in industry.

Earlier in the meeting, the EDA approved a listing agreement with Yokohama so the EDA can market the property to potential buyers (prior to the city and the county closing on the purchase).

EDA Executive Director/consultant Lucas Witt informed EDA members that the acquisition of the Yokohama property remains on track to meet a June 30 deadline in order to receive a $2 million reimbursement from the Kentucky Cabinet for Economic Development toward the purchase price of the property ($8.5 million).

Industry Day

Bohanan updated other EDA board members on Industry Day. This year, local industries will host Woodford County High School juniors on April 14.

The transition to invite juniors (rather than seniors) to local industries made scheduling a date for site visits challenging for everyone, Bohanan said, before lauding The Kentucky Castle and other local industries for having a willingness to step up to accommodate the site visits.

“We’re very blessed,” she told EDA members, “to have such good community partners in Woodford County.”

Financial report

Beginning March with a balance of $148,254.76, the EDA ended the month (as of March 24) with $147,885.34 after receiving $130.58 in interest and paying $500 for rent, according to a financial report presented by Bohanan.

The EDA has a balance of $32,778.54 in its Community Development Block Grant (CDBG) program fund account after receiving a $10,916.16 payment from Bluegrass Distillers, Bohanan said. The EDA will receive payments for March and April next month, she said. Also, the CDBG fund account is being converted to an interest-bearing account, she added.

The EDA approved bill payments of $500 for rent, $336 for legal fees (attorney Bill Moore for his Yokohama work), $660 for its Midway University intern, and $2,254.17 to Midway U for hosting last year’s Industry Day and a Bluegrass Alliance meeting.