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Photo: Kentucky Cabinet For Economic Development
Louisville Mayor Greg Fischer today joined community leaders, investors and Louisville Metro Government representatives to champion Opportunity Zones as a new tool to help revitalize Louisville neighborhoods. Additionally, the Mayor released the city’s Opportunity Zones Prospectus, a holistic document that showcases Louisville’s assets and will be shared with investors locally and across the country.
“Opportunity Zones are a new avenue for us to attract investment to areas of our city that already have momentum and could see tremendous growth and opportunity with additional capital investment,” said the Mayor. “We want responsible development and projects that benefit our residents by providing investment without displacement, which is why we’re working closely with community stakeholders, state, and federal government partners to ensure we are best positioned to put private dollars to work.”
Opportunity Zones are a new community development program established by Congress in the Tax Cuts and Jobs Act of 2017. This program encourages long-term investment in low-income urban and rural communities nationwide by providing a tax incentive for investors to re-invest their unrealized capital gains into Opportunity Funds that are dedicated to investing in Opportunity Zones. In Louisville, 19 census tracts are designated as Opportunity Zones.
Transformation is currently underway in the city’s Opportunity Zones. One of the first Louisville investors to take advantage of the recently enacted Opportunity Zone legislation is The Marian Group through its spin-off and expansion of Blacksmith Iron Works, a fabrication and custom metal solutions business that recently moved into a 20,000 square-foot facility at 3100 Vermont Ave. in the Russell neighborhood. The Blacksmith Iron Works expansion will represent almost $750,000 of total investment in Russell and will include at least 16 employees by 2019.
“We are excited about this expansion for Blacksmith Iron Works and to be moving to Russell,” said Jake Brown, President of Blacksmith Iron Works and a Principal with Louisville-based developer, The Marian Group. “To be one of the first Opportunity Zone investments in Louisville just makes it better.”
Additional community partners that are investing in Opportunity Zones include OneWest, a nonprofit community development organization that recently purchased its first property on 18th Street with plans to redevelop it as a restaurant or retail space, and the Louisville Urban League with its $35 million Track on Ali project.
The team at Louisville Forward, the city’s community and economic development agency, is ready to work with businesses and investors to maximize Louisville’s potential for its Opportunity Zones by providing concierge project management, offering incentives for projects in CDBG-eligible census tracts, and working to accelerate the permitting process.
The city is also working to identify the needs of investors, developers and business owners, and then connect them with each other dependent on resources that will support each project. To be listed in the city’s database, complete the form found at https://louisvilleky.wufoo.com/forms/kzd6v3x13ol8kc/
To assist business owners and investors with identifying Opportunity Zones, the city created an interactive map to show exact addresses and boundaries of Louisville’s designated Opportunity Zones. To search Louisville-specific addresses, visit https://louisvilleky.gov/government/louisville-forward/opportunity-zones-louisville
American Airlines today announced new daily nonstop service between Louisville International Airport (SDF) and Los Angeles International Airport (LAX) beginning Tuesday, April 2, 2019. The airline will operate the flight using a 128-seat Airbus 319 aircraft with WiFi and in-seat power. The daily flight is scheduled to depart SDF at 7:24 a.m. and arrive at LAX at 9:00 a.m. The nonstop return flight is scheduled to depart LAX at 10:55 p.m. and arrive at SDF at 6:02 a.m.“This new nonstop flight between Louisville International Airport and Los Angeles is more exciting news for our city, and another way we are creating opportunities for the residents and businesses of Louisville. The flight is great for attracting business, showcasing our city to new clientele in the west coast market, and giving us quicker access to workforce and growth opportunities,” said Louisville Mayor Greg Fischer. “Creating new opportunities like this one requires strong public-private partnerships. I applaud our partners at the Louisville International Airport, Louisville Regional Airlift Development, Commonwealth of Kentucky and American Airlines, and I encourage the people of Louisville to support this exciting opportunity.”
“We are ecstatic with American Airlines’ decision to offer service on our largest unserved and most requested route,” said Dan Mann, Executive Director of the Louisville Regional Airport Authority. “Their addition of this transcontinental service along with continued growth of other routes is a testament to their confidence in our market and a shining example of the results of community partnership.”
With this announcement, American Airlines will offer 27 daily nonstop flights to seven destinations from Louisville including Charlotte, Chicago, Dallas-Ft. Worth, Miami, New York-LaGuardia and Washington-Reagan.
American Airlines also plans to upgrade aircraft at Louisville International Airport to larger jets to serve the increased passenger traffic to Charlotte and Dallas.
Louisville International Airport is served by six airlines offering flights to 32 nonstop destinations including 17 of the region’s top 20 domestic markets. With just one stop travelers from across the region can reach 170 international destinations in 81 countries on six continents.
For additional information regarding Louisville International Airport, visit www.FlyLouisville.com.
Gov. Matt Bevin today announced Pounds of Plastic Inc., a supplier to the automotive and general manufacturing industries, will locate in Owenton with a more than $4.1 million investment expected to create 54 full-time jobs.
“Kentucky has a world-class automotive industry, leading the United States in vehicles produced per capita,” Gov. Bevin said. “It is exciting to see continuing growth within the auto industry at all levels, and it begins with suppliers like Pounds of Plastic. We are grateful for the strong collaboration between this company and state and local economic development leaders, resulting in 54 new jobs that will benefit families in Owen County and the surrounding region.”
Pounds of Plastic will locate in the former Itron Inc. warehouse, a 30,000-square-foot building across from the former Itron manufacturing facility. Itron closed its Owenton operations this spring, laying off about 400 employees.
At the plant, Pounds of Plastic will manufacture custom polymers and thermoplastics for automotive customers. The company’s investment will cover costs to renovate the facility and purchase new equipment. Company leaders noted proximity to existing and prospective customers as a deciding factor in selecting both Kentucky and Owenton. Work on the project is expected to begin in November, with the facility operational by December.
“We are truly excited to become part of your community and look forward to a mutually prosperous partnership in the years ahead,” said Richard Pounds, owner and president of Pounds of Plastic. “We would like to extend our heartfelt gratitude to the fantastic representatives of the government of Owen County and the state of Kentucky who made this possible. Our decision to choose this location over other potential locales in other states is a testament to the dedication of these individuals. We look forward to calling Owen County home.”
Based in Mississauga, Ontario, Canada, Pounds of Plastic specializes in custom polymers and thermoplastics used in automotive and a variety of other industries. As well, the company provides technical expertise for customers including assistance with recycling programs. Richard Pounds founded the company in 1997 in response to an insufficient supply of nylon compounds and other materials for use by southern Ontario’s moulding industry. Since then, the company grew to service processors throughout North America.
Sen. Julian Carroll, of Frankfort, said the local workforce is ready to serve its newest company.
“This auto supplier will strengthen our community through new jobs and improvements to the local economy,” Sen. Carroll said. “We stand ready with a skilled workforce to meet the company’s needs and look forward to a long and prosperous partnership.”
Rep. Phillip Pratt, of Georgetown, said statewide, pro-business policy changes have made projects like this possible.
“The new jobs and economic opportunity that Pounds of Plastic is bringing to Owenton is the direct result of the pro-business, pro-jobs approach I have brought to Frankfort,” Rep. Pratt said. “These new jobs will bring increased economic opportunity for our families, and are just the latest addition to Kentucky’s manufacturing comeback. I’m proud of our efforts in Frankfort to promote policies that strengthen our economy and create this kind of good news for our working families.”
Mayor David Wotier noted the team effort necessary to make the project a reality.
“I speak on behalf of the city of Owenton: We are very excited to welcome Pounds of Plastic to Owenton,” Mayor Wotier said. “Their commitment has certainly been a breath of fresh air for us and will positively affect our economy. Thanks to all the hard work and diligent efforts of everyone at the Cabinet for Economic Development. There’s been a great spirit of teamwork involved.”
Owen County Judge-Executive Casey Ellis said the arrival of Pounds of Plastic leads the way for new growth in the community.
“On behalf of the citizens of Owen County, I would like to thank Gov. Bevin for his leadership in assisting to expedite the commonwealth’s economic incentive package as well as Rich Pounds, president of Pounds of Plastic, for choosing Owen County for his first US manufacturing location,” Judge-Executive Ellis said. “The prospect of this many new jobs locating to Owen County is only the beginning in revitalizing our community with new economic growth opportunities.”
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) on Thursday preliminarily approved the company for tax incentives up to $900,000 through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the agreement term through corporate income tax credits and wage assessments by meeting job and investment targets.
In addition, Pounds of Plastic can receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, companies can receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives. In fiscal year 2017, the Kentucky Skills Network provided training for more than 120,000 Kentuckians and 5,700 companies from a variety of industry sectors.
Citing Louisville’s strong economy, sound management, and budgetary flexibility, the nationally recognized credit rating services Fitch Ratings, Inc. and Moody’s Investors Service have again granted Louisville Metro positive bond ratings.
The economic renaissance underway in Louisville includes $13 billion of capital investment since 2014, 80,000 new jobs and 2,700 new businesses since 2011, rising wages and an unemployment rate below four percent. The new acknowledgements from Fitch and Moody’s of “The Big Three” credit agencies position Louisville Metro to build on that economic momentum through additional capital investments across the city.
“Unprecedented economic growth is visible in every corner of Louisville, from the Southwest, South Central and Northeast Regional Libraries to the revitalization at the intersection of 18th and Broadway and the renaissance underway in Russell,” Mayor Greg Fischer said. “Positive credit ratings strengthen our ability to make smart investments that complement the contributions coming from other sectors.”
Louisville Metro’s upcoming bond sales will be used to repay notes issued in 2017 to provide initial financing for land acquisition associated with the approximately $200 million development of the Butchertown Stadium District. The sale will include $15.8 million in tax-exempt and $14.8 million in taxable general obligation bonds. Louisville City FC, which has enhanced their financing portfolio with support from the state, will pay $14.5 million back to the city over 20 years for reimbursement of a large portion of the land cost.
Fitch again assigned and affirmed its highest rating of AAA for Louisville Metro.
In its report, Fitch stated that the “AAA’ ratings reflect metro government’s low long-term liabilities, strong revenue and expenditure frameworks, and Fitch’s expectation that the metro government will maintain a high level of financial flexibility throughout economic cycles.”
Moody’s affirmed its Aa1 rating for Louisville Metro.
Moody’s report cited Louisville Metro’s “sizeable and growing tax base serving as a regionally important economic hub” as a factor in assigning the Aa1 rating, and the “regionally important local economy” as rationale for issuing a stable outlook.
“Mayor Fischer’s leadership in strengthening our financial foundation has positioned Louisville Metro to act on strategic opportunities that build on our economic momentum,” said Louisville Metro’s Chief Financial Officer, Daniel Frockt. “Our positive credit ratings are key to making that happen.”
Louisville Metro’s bond sales are scheduled for Oct. 31, 2018.
Photo: Kentucky Education And Workforce Development Cabinet
Kentucky’s seasonally adjusted preliminary September 2018 unemployment rate was 4.5 percent, according to the Kentucky Center for Statistics (KYSTATS), an agency of the Kentucky Education and Workforce Development Cabinet. The unemployment rate for September 2018 was up from the 4.4 percent reported for August 2018.
The preliminary September 2018 jobless rate was down 0.2 percentage points from the 4.7 percent recorded for the state in September 2017.
The U.S. seasonally adjusted jobless rate for September 2018 was 3.7 percent, down 0.2 percentage points from the 3.9 percent reported for August 2018, according to the U.S. Department of Labor.
Labor force statistics, including the unemployment rate, are based on estimates from the Current Population Survey of households. The survey is designed to measure trends in the number of people working. It includes jobs in agriculture and individuals who are self-employed.
Kentucky added 2,311 individuals to its civilian labor force in September 2018. This brings the state’s labor force to 2,073,753. The number of people employed in September was up by 777, while the number unemployed increased by 1,534.
“The total number of people working in Kentucky increased during September,” said University of Kentucky’s Center for Business and Economic Research (CBER) Associate Director Mike Clark, Ph.D. “However, the increase in the number of people who were unemployed was greater—causing the unemployment rate to increase.”
In a separate federal survey of business establishments that excludes jobs in agriculture and people who are self-employed, Kentucky’s seasonally adjusted nonfarm employment increased by 2,100 jobs in September 2018 compared to August 2018. Kentucky has added 14,500 jobs since September 2017, a 0.8 percent employment growth.
“Among the more notable results from the employment data that BLS released this month are the revisions for August,” Clark said. “The preliminary data released last month had suggested that Kentucky’s employment decreased in August. The revised data show employment increased by 3,700 in August. This was followed by an additional 2,100 jobs in the preliminary estimates for September.”
Nonfarm data is provided by the Bureau of Labor Statistics’ Current Employment Statistics program. According to this survey, six of Kentucky’s 11 major nonfarm North American Industry Classification System (NAICS) job sectors saw employment increases from the previous month while four declined and one was unchanged.
Employment in Kentucky’s construction sector jumped 2.3 percent, adding 1,700 jobs from August 2018 to September 2018. Over the past 12 months, construction employment is down 900 positions or 1.2 percent.
Trade, transportation and utilities sector gained 900 jobs in September 2018. All three subsectors showed growth from August 2018 to September 2018. Wholesale trade added 600 positions; retail trade gained 200 positions; and transportation, warehousing and utilities added 100 positions. This sector has expanded by 9,700 positions or 2.4 percent since September 2017.
Employment in the professional and business services sector increased by 500 jobs from August 2018 to September 2018, a gain of 0.2 percent. This sector has added 3,500 jobs since September 2017.
The leisure and hospitality sector increased by 300 jobs from August 2018 to September 2018. The accommodations and food service subsector added 400 jobs, while the arts, entertainment and recreation subsector fell by 100 jobs in September 2018. Since September 2017, leisure and hospitality has lost 600 positions or 0.3 percent.
Education and health services sector grew by 100 jobs in September 2018. Within this sector, health care and social assistance added 200 jobs and educational services lost 100 jobs. Employment in education and health services for September 2018 was up 900 since a year ago.
Employment in Kentucky’s mining and logging sector rose by 100 jobs from August 2018 to September 2018. Employment in this sector is up 200 positions since September 2017.
Employment in the financial activities sector was unchanged from August 2018 to September 2018. This sector has gained 1,000 jobs since last September. Within the sector, the finance and insurance subsector added 100 jobs and the real estate, rental and leasing subsector lost 100 jobs.
Kentucky’s manufacturing sector decreased by 200 jobs from August 2018 to September 2018, a drop of 0.1 percent. Durable goods manufacturing declined by 600 jobs. Employment in nondurable goods manufacturing added 400 jobs in September. Kentucky’s manufacturing employment was up by 400 since September 2017.
“The revised August estimates suggest that manufacturing employment did not decline as indicated initially last month,” said Clark. “However, the data does point to more variation in manufacturing employment from month-to-month, which might indicate that manufacturers are less certain about demand for their products.”
Information services sector lost 100 jobs in September 2018. This sector has declined by 300 jobs since September 2017. The industries in this sector include traditional publishing as well as software publishing; motion pictures and broadcasting; and telecommunications.
The government sector decreased by 1,000 jobs in September 2018. Federal government employment declined by 200 jobs; state government jobs fell by 100; and local government fell by 700 jobs. Total government employment is down 300 since September 2017.
Employment in the other services sector was down by 200 from August 2018 to September 2018. Other services rose by 900 jobs from a year ago for a growth rate of 1.4 percent since September 2017. Other services sector includes repairs and maintenance, personal care services and religious organizations.
Civilian labor force statistics include nonmilitary workers and unemployed Kentuckians who are actively seeking work. They do not include unemployed Kentuckians who have not looked for employment within the past four weeks.
Kentucky’s statewide unemployment rate and employment levels are seasonally adjusted. Employment statistics undergo sharp fluctuations due to seasonal events, such as weather changes, harvests, holidays and school openings and closings. Seasonal adjustments eliminate these influences and make it easier to observe statistical trends. However, because of the small sample size, county unemployment rates are not seasonally adjusted.
Learn more about Kentucky labor market information at http://kystats.ky.gov/KYLMI.
Photo: Kentucky Cabinet For Economic Development
Gov. Matt Bevin congratulated AgTech Scientific for breaking ground on a new facility to develop and manufacture hemp-based products in Paris. The facility is part of AgTech’s plan to work with Kentucky farmers to grow hemp and to partner with the University of Kentucky on research.
“The hemp industry is expanding rapidly, and Kentucky is on the leading edge of this growth in terms of its science and commercial viability,” Gov. Bevin said. “AgTech Scientific’s exciting new venture represents a unique collaboration with the state’s agricultural community, the University of Kentucky, and the Commonwealth of Kentucky. We are grateful for AgTech’s investment in Bourbon County, and we look forward to the innovation and job growth that will take root in the Bluegrass State as a result.”
Today’s ceremony took place in Paris, where AgTech is building a 50,000-square-foot, state-of-the-art structure on a 10-acre site in the Bourbon County Business Park, 333 Cleveland Drive. The company has an option to purchase an additional 10 acres there. AgTech’s initial $5 million investment is expected to grow substantially. AgTech will start with around 50 employees, projected to grow to 271 within three years.
“The Ag Tech team is excited to announce that our first beta test planting season has been a success. We initially planned on 2,000 plants. However, as word and interest in our project spread in the farming community, we ended up planting 200,000 plants in 2018,” said Dr. Brian King, the company’s chief strategy officer. “We are planning to plant over 4 million plants next season. Our new state of the art 50,000-square-foot facility in Bourbon County will allow us to scale operations and ensure top quality throughout the supply chain. We deeply thank everyone in the community who has made this possible. Some of the biggest help came from the Governor, Ag Commissioner Quarles, Congressman Andy Barr, Matt Koch, Bourbon County Executive and all the great farmers of Kentucky.”
More than 6,700 acres of hemp were planted in Kentucky in 2018 under the Kentucky Department of Agriculture Industrial Hemp Research Pilot Program, placing the commonwealth behind only Colorado among all states in total industrial hemp acres planted. Approved Kentucky growers have skyrocketed from 20 at the program’s outset in 2014 to 210 in July 2018.
Kentucky Agriculture Commissioner Ryan Quarles noted the state’s success in the burgeoning industry.
“Kentucky continues to be a leader in industrial hemp production,” Commissioner Quarles said. “We congratulate AgTech Scientific on this important milestone. The Kentucky Department of Agriculture will continue working hard to position the commonwealth as the epicenter of industrial hemp research.”
AgTech holds both a Processor/Handler License and a Grower License from the Kentucky Department of Agriculture hemp program and intends to partner with Kentucky farmers for largescale hemp production. The company would then extract cannabidiol (CBD) from the locally grown hemp. CBD differs from THC, the intoxicant in marijuana. Initially, the facility would produce an energy drink incorporating CBD and would later expand its product lineup.
In partnership with the University of Kentucky College of Agriculture, Food and Environment, AgTech is researching potential health benefits of hemp-based additives for animal food. AgTech plans to eventually begin manufacturing pet and equine foods, among other products, contingent on changes to regulations.
Sen. Stephen West, of Paris, said he is eager to see the fruit of the company’s labor.
“I’m pleased to hear that AgTech Scientific has chosen Paris as the home for its new facility as the hemp industry continues to grow in our state,” Sen. West said. “I look forward to seeing what this partnership with the University of Kentucky can produce and the opportunities it will bring to Bourbon County.”
Paris Mayor Mike Thornton said the company’s presence could have a far-reaching impact locally.
“We are excited to welcome AgTech Scientific to Paris and Bourbon County. I look forward to helping them grow and expand on the opportunities that this area can provide,” Mayor Thornton said. “Their willingness to locate in Paris creates much needed employment opportunities and offers an exciting new process for industrial hemp that will surely be a huge benefit to our local farmers. I anticipate seeing great things from AgTech Scientific in the future.”
Bourbon County Judge-Executive Michael R. Williams said he is proud to see the community at the forefront of a new industry with unlimited potential.
“Bourbon County is thrilled to have AgTech Scientific join our family of business partners. This is a great day for all of Bourbon County and central Kentucky,” Judge-Executive Williams said. “Their impact on our farmers has already been very positive and will continue to bolster our already leading-edge agricultural economy. They will truly be pioneers in an industry that is positioned to bring new prosperity and a bright future to our farms and businesses. Their plans for more than 200 jobs in the processing plant is a major impact to the economy and their confidence and support of Bourbon County will be the inspiration for other businesses who will consider our community in the future. It’s a great day for Bourbon County and a great day for Kentucky. Welcome AgTech Scientific to your new home and your new business family!
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in January preliminarily approved the company for tax incentives up to $2.4 million through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the agreement term through corporate income tax credits and wage assessments by meeting job and investment targets.
In addition, AgTech can receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, companies can receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives. In fiscal year 2017, the Kentucky Skills Network provided training for more than 120,000 Kentuckians and 5,700 companies from a variety of industry sectors.
For more information on AgTech, visit www.agtechscientific.com.
When completed, it will be a major investment providing more housing units for students near the University of Louisville. On Thursday, ground was broken on the Marshall of Louisville located at 2400 South Fourth Street.
“The Marshall will be a great addition to District 6 and when completed will enhance this area as we continue the revitalization of South Fourth Street,” said President David James, who joined Mayor Greg Fischer for the ground breaking.
The Marshall Louisville is an approximately $50 million investment in President James’ District. The project will have 231 Units that sit atop a 232 space parking garage. The development team worked with us to make the garage disappear as you will not even notice it. 531 University of Louisville Students will occupy this site in a short period of time.
“We are excited to support the University of Louisville and to provide student housing as the University delivers on its plan for growth,” Jack Dulworth, the local partner of Aptitude 4th Street, LLC remarked.
“The Marshall is the first of many projects that will transform University Corridor and give residents and visitors a feeling of place near the university and Churchill Downs,” says Councilwoman Marianne Butler (D-15). “I applaud Jack Dulworth and his partners on making this bold investment and look forward to other developments along the corridor.”
It is a new 10-story luxury student living complex sitting on a 1.5 acre lot being developed by Dulworth and Aptitude 4th Street, LLC.
The property will house 591 beds throughout 231 fully furnished units. The complex will include two parking garage floors beneath eight stories of residential apartments and amenities. The penthouse floor will feature a 2,500 square-foot outdoor terrace and 8,000 square feet of amenity space, including a gym, study lounges and game rooms for students to relax with unobstructed views of the iconic Churchill Downs.
This is the first time in recent large student housing developments that there is a local partner, Jack Dulworth, who has had a substantial role in the development to date.
“I am glad to see this day come,” said James. “The City worked hard to land the project as this area that has been a high priority target for redevelopment.”
As the project moves forward, President James is committed to making substantial improvements to the underpass entrance to the University of Louisville to make it friendlier for people walking, biking or “Birding”, which refers to scooters that have recently become part of Metro Louisville’s transportation mode.
To learn more about the project, go to: https://www.aptitudere.com/the-marshall-louisville/