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OH, YEAH. PET IS GOING TO BE BETTER YOU VERY MUCH. THE WONDERFUL.
DON'T STI. METRO TV. WE'RE GONNA START IN ONE MINUTE.
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TESTING TESTING. TESTING TESTING. TESTING TESTING.METRO TV. CAN YOU PLEASE CHANGE THE DISPLAY SCREEN FOR US? THANK YOU.
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MEDFIELD TV 30 SECONDS, PLEASE.[Call to Order]
GOOD AFTERNOON. THIS IS A MEETING OF THE LABOR AND ECONOMIC DEVELOPMENT COMMITTEE[Roll Call]
ON THE CHAIR. PAT MULVIHILL. I'M JOINED BY MY CO CHAIRING ANTHONY P. ARGENTINE E. WE ALSO JOINED BY ROBIN ENGEL COUNCIL ON PURPOSE. COUNCILMAN BAKER AND JOINING US. THE VIDEO CONFERENCE . KHALIL BOSTON AND MADAM CLERK. I THINK YOU TOLD ME YOU HAVE TO EXCUSE ABSENCES WAS CORRECT.COUNCILMAN HAWKINS AND COUNSELING ACKERSON. OKAY WITH THAT, I WILL TAKE THE BUSINESS A LITTLE BIT OF AN OUT OF ORDER. UM MADAM CLERK IF YOU COULD BRING IT INTO THE RECORD RECORD.
[Pending Legislation]
I DON'T PLEASE. THIS MEETING IS BEING HELD PURSUANT TO CARE. A 61.826 AND COUNCIL RULE FIVE RED IN FALL. ITEM NUMBER TWO IS OUR DASH 075-23 RESOLUTION PURSUANT TO THE CAPITAL AND OPERATING BUDGET ORDINANCES APPROVING THE APPROPRIATION TO FUND THE FOLLOWING ON COMPETITIVELY NEGOTIATED SOCIAL CONTRACT. FOR ANIMAL SERVICES CONCERNING THE BLOOD WORK ANALYSIS DEVICE.IDEXX DISTRIBUTION INC FOR $85,000 RED AND COOL, THANKS PROBABLY MOVED IN SECOND, AND WE HAVE DECIDED BEFORE US AND I SEE WE HAVE A SPEAKER. THEY KNOW THE DRILL. THEY'RE ALREADY AT THE
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PODIUM. YEAH YOU COULD INTRODUCE YOURSELF AND TELL US A LITTLE BIT ABOUT THIS RESOLUTION, PLEASE. THANK YOU. YES THANK YOU FOR HAVING ME HERE TODAY AND MY NAME IS JUSTIN FRANKLIN I'M THE ASSISTANT DIRECTOR AT METRO ANIMAL SERVICE. AND WE'RE HERE BEFORE YOU TODAY TO TALK TO YOU ABOUT CONTINUING OUR SOLE SOURCE CONTRACTS, RYDEX SO THIS IS A GOOD CONTRACT FOR US BECAUSE IT WOULD SAVE US MONEY IN THE LONG RUN BECAUSE OUR STAFF HAS ALREADY TRAINED ON THE EQUIPMENT. UM WE HAVE FREE REPLACEMENT LAST YEAR THEY CAME AND REPLACED ARE COMPLETE SYSTEM FOR FREE. WE GET UPDATES. WE GET . WE GET FREE MAINTENANCE AS WELL, IF ANYTHING GOES WRONG, AND WE ALSO GET SAME DAY RESULTS , WHICH IS CRITICAL FOR OUR OPERATION, SO IF YOU KNOW AN ANIMAL COMES IN, WE HAVE TO TEST FOR PART, BUT IF WE HAVE TO SEND IT OUT, IT COULD BE TWO OR THREE DAYS AND WE CAN ONLY QUARANTINE SO MANY ANIMALS, SO THIS ALLOWS US TO DO A TEST AND GET THE RESULTS WITHIN JUST A FEW MINUTES OF THAT ANIMAL BEING THERE. UM THANK YOU FOR THAT.NOW IS THIS A PIECE OF EQUIPMENT OR SOME SERVICES WE USED IN THE PAST? YES, THERE'S A CONTRACT WE'VE HAD FOR ABOUT SIX YEARS NOW. AND SO WE'RE GOING INTO HOW LONG IS THIS PROPOSED AGREEMENT FOR JUST A YEAR OR SO ANNUALLY SO WE WOULD GO UNTIL NEXT YEAR. OKAY? AND AT THAT POINT BECAUSE THIS IS A FREQUENT QUESTION BEFORE THIS BODY WHEN YOU ANTICIPATE THE USEFUL LIFE OF THIS BEING A LONGER UTILIZE, SO YOU'LL GO OUT FOR BED AGAIN. OR DO YOU HAVE YOU ALL CONTEMPLATED THAT OUR GOAL IS TO CONTINUE WITH THIS COMPANY BECAUSE OF COST? IT SAVES IN THE LONG RUN, SO WE LOOK AT THAT ANNUALLY WHEN WE DECIDED TO GO. MORNING COMES UP TO RENEW. WE LOOK AT IT AT THAT TIME. SO THERE IS THE POTENTIAL WHEN YOU'RE LOOKING AT IT. YOU ARE THERE OTHER COMPANIES TO DO THIS SORT OF WORK. THERE IS ONE OTHER COMPANY . I'M NOT SURE OF THE NAME OFF THE TOP OF MY HEAD. BUT THIS COMPANY THEY ONLY GIVE LIKE ONE YEAR GUARANTEE ON THE EQUIPMENT . AFTER THAT, IT'S AT COST TO METRO. ALL THE TESTS. WE HAVE TO SEND OUT, WHICH IS THAT COST, SO THAT'S WHY WE NORMALLY STICK WITH THIS ONE. THANK YOU, UM, COLLEAGUES, ANYBODY ELSE HAVE ANY QUESTIONS? SORRY. I GOTTA GET THE Q OPEN IN A WHILE. ALRIGHT COUNCILMAN PURVIS, YOU'RE IN THE QU SAID SO. THANK YOU. I JUST WANT TO ASK, SO THIS IS AN ALL INCLUSIVE SERVICE.
HERE WITH THIS PROVIDER. YES THANK YOU. FOR YOUR QUESTION. IT IS. IT IS VERY BENEFICIAL FOR THE AGENCY BECAUSE IT COVERS TRAINING MAINTENANCE. LIKE I SAID, OUR EQUIPMENT WENT DOWN LAST YEAR. THEY BROUGHT US A NEW ONE. NO COST REPLACED THE NEW COST ANY UPDATED TRAINING THEY SEND OUT SO IT'S KIND OF ALL ENCOMPASSING. CURRENTLY USING THIS SYSTEM. NOW WE USE IT EVERY DAY. AND SO THIS IS FOR ONE SITE TESTING FOR DIFFERENT, UM, ANIMAL ILLNESSES LIKE PRAVO HEARTWORM OR ARE UM. IT COULD BE ANY VARIOUS SIDE OF BLOOD ISSUE . SO IF WE DON'T KNOW WHAT THE ANIMALS FACING THIS WILL ACTUALLY GIVE US CLARIFICATION, BUT IT COVERS ANYTHING FROM PARVO TO THE UNKNOWN. THE BEST ANSWER I HAVE FOR YOU. OKAY OKAY. THANK YOU. THANK YOU. THE COUNCILMAN. BUT WHEN YOU HAVE A QUESTION THANK YOU CHAIR. SO I HAVE A QUESTION THAT $85,000. IS THIS SOMETHING THAT COULD BE DONE IN HOUSE AND YOU COULD POSSIBLY BUY THE EQUIPMENT FOR IN HOUSE SERVICES OR JUST REQUIRED TO BE IN OUTSOURCING SERVICE TO HELP SAVE MONEY IN THE LONG RUN, UM AND IF YOU DID DO IT IN HOUSE WHAT DID YOUR SAVINGS BE? IF THAT WAS SOMETHING YOU COULD PURCHASE THE EQUIPMENT FOR? WE ARE CURRENTLY DOING IT IN HOUSE. WE DON'T OUTSOURCE THIS. THAT'S WHAT THIS MACHINE ALLOWS US TO DO, BECAUSE IT SAVES US SO MUCH MONEY IF WE OUTSOURCED THAT I DON'T HAVE THE EXACT FIGURES, WHICH I CAN ABSOLUTELY GET THOSE FOR YOU, BUT IT WOULD COST US MORE THAN WHAT WE'RE PAYING RIGHT NOW. SO THE $85,000 TO PAY FOR THE SERVICE OF THE MACHINE THAT YOU CURRENTLY HAVE. YES THAT AND THEN WE DO OUR SNAP PARVO TEST THAT WE CAN DO ON SITE WHEN INDIVIDUALS BRING THEIR ANIMALS UP. SO THAT COVERS THAT. IS THERE, NOT A MACHINE THAT YOU COULD PURCHASE OR BY THIS MACHINE FROM THE COMPANY UNDER A WARRANTY RATES, NOT AND HE WAS $1000 OF YOUR SERVICE. YOU UNDERSTAND WHAT I'M ASKING THEM? I DO. I UNDERSTAND. UM THERE'S ONLY TWO COMPANIES THAT DO IT. AND THE OTHER COMPANY LIKE, UM I'M SORRY. THE OTHER COMPANIES AND TECH AND THEY ALLOW ONE YEAR GUARANTEE ON THE EQUIPMENT BY ANYTHING WE WOULD HAVE TO OUTSOURCE. WE'D HAVE TO SEND THEM. OUR BLOOD TESTS ARE POWER PROTEST, AND THAT WOULD BE AT A COST. SO I GUESS I'M UNDERSTANDING THAT TO OWN THIS
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PIECE OF EQUIPMENT. JUST I GUESS THEY LEASE IT TO YOU AT A COST TO YOUR DEPARTMENT FOR $85,000 A YEAR AS A SUBSCRIPTION, BASICALLY. THAT IS CORRECT. THANK YOU. THANK YOU FOR YOUR QUESTION. I HAVE ONE FOLLOW UP TO THAT. SO IF THIS MACHINE DOESN'T WORK AS PART OF YOUR AGREEMENT WITH THEM, DO THEY DO SERVICE? DO THEY DO ROUTINE MAINTENANCE AND THEN GO ABOVE AND BEYOND. IF SOMETHING BREAKS THEY DO THEY COVER EVERYTHING. IF WE NEED THEM, THEY'RE THERE AS QUICK AS THEY CAN GET THERE. LIKE I SAID, YOU KNOW, MAR SYSTEM WENT DOWN. THEY REPLACED IT PRETTY MUCH RIGHT AFTER WE CALL THEM. AND IS THAT INCLUDED IN THE COST OF THE CONTRACT. IT IS YOU DIDN'T PAY ANY ADDITIONAL FEES TO HAVE THEM COME OUT. THAT'S CORRECT. OKAY. AND YOU MENTIONED THIS COMPANY SO THEY HAVE A EITHER AN OFFICE HERE OR THEY LOCATED WHAT'S WHO COMES OUT AND ARE THEY HERE IN TOWN, I GUESS TO FIX THIS. THEY DO HAVE AN OFFICE HERE, OKAY? SAYING NO FURTHER QUESTIONS. THIS RESOLUTION CALLS FOR A VOICE VOTE IN FAVOR, SAY AYE. THOSE OPPOSED IS HAVE IT. MADAME CLARK, IF YOU'D SEND THIS TO THE CONSENT CALENDAR. SO NOTED, THANK YOU. AND MAN CLERK IF YOU COULD READ INTO THE RECORD RECORD ITEM NUMBER ONE, PLEASE.[Special Discussion]
THANK YOU. ITEM NUMBER ONE IS LOUISVILLE, METRO ECONOMIC DEVELOPMENT DEPARTMENT WORK AND STATE LOCAL INCENTIVE PROGRAMS WITH BENJAMIN WARREN, JEFF O'BRIEN ECONOMIC DEVELOPMENT AND CHRISTINA SLATTERY, KENTUCKY CABINET FOR ECONOMIC DEVELOPMENT RIGHT AND PULL. THANK YOU. SO I SEE BEN, YOU'RE GOOD AFTERNOON. THANK YOU ALL FOR HAVING US JOINED TODAY BY COMMISSIONER FOR ECONOMIC DEVELOPMENT FROM THE CABINET FOR ECONOMIC DEVELOPMENT AT THE COMMONWEALTH OF KENTUCKY . CHRISTINA SLATTERY APPRECIATE YOUR TIME TODAY WE'RE HERE IN RESPONSE TO SOME QUESTIONS AND JUST AN OVERVIEW OF HOW ARE KEY INDUSTRY CLUSTER TEAM WORKS THROUGH SOME PROJECTS, BUT ALSO THE INCENTIVE PROGRAMS THAT ARE COMBINED WITH STATE AND LOCAL PARTICIPATION. THOSE ARE THE RESOLUTIONS WE BRING BEFORE THIS BODY PRETTY REGULARLY, SO WE JUST WANTED TO PROVIDE A QUICK OVERVIEW OF THAT AND TAKE SOME QUESTIONS AND, YOU KNOW, GET SOME GOOD BACKGROUND THERE. SO YOU HAVE A SLIDE SHOW FOR WE DO ? YES, SIR. ALRIGHT THANKS. THANK YOU. SO JUST STARTING REAL QUICK WITH THE DEPARTMENT FOR ECONOMIC DEVELOPMENT YOU'LL SEE IN THE NEW STRUCTURE HERE IS OUR DEPUTY MAYOR PAT MOLLOY CHIEF JEFF O'BRIEN AND THEN MYSELF AS DIRECTOR. WE HAVE FIVE SEGMENTS OF OUR OFFICE AROUND OUR KEY INDUSTRIES. SMALL BUSINESS METCO LOANS. A RESEARCH AND POLICY TEAM OR WEST LOUISVILLE MANAGER AND THEN OUR COMMUNICATIONS MARKETING GROUP, AND IT'S JUST KIND OF GIVE A LEVEL SET OF THE GROUP THAT WE'RE TALKING ABOUT ON THE KEY INDUSTRY SIDE, WHICH IS WE'RE REALLY FOCUSING. TODAY WE HAVE FIVE FOLKS THAT DO EVERYTHING FROM WORKFORCE SOLUTIONS FOR COMPANIES TO OUR KEY INDUSTRY CLUSTERS, WHICH ARE FOOD AND BEVERAGE, ADVANCED MANUFACTURING, HEALTH AND AGING INNOVATION AND BUSINESS SERVICES AND TECHNOLOGY. A QUICK OVERVIEW OF SORT OF THE THREE MAIN AREAS OF OUR GROUP, UM, DEPARTMENT WITH OUR SMALL BUSINESS TEAM, AND THIS IS REALLY EVERYTHING FROM BACK OF THE NAPKIN IDEA. INDIVIDUALS THAT ARE STARTING SMALL LOCAL RETAIL BUSINESSES IN OUR COMMUNITY INCLUDES A STARTUP COUNSELING AND COACHING ON BUSINESS PLAN, WRITING AND DEVELOPMENT FINANCES, EVEN HELPING WITH SITE SELECTION AND LOCATIONS AND BY SITES LIKE DIMINUTIVE, PHYSICAL COMMERCIAL SPOT. UM MAIN STREET KIND OF SPACES, FINANCIAL COUNSELING AND ASSISTANCE AND ROUTING TO VISIT TO OUR PARTNERS THROUGHOUT THE COMMUNITY, EVERYBODY FROM OUR FRIENDS OF THE URBAN LEAGUE TO THE SMALL BUSINESS DEVELOPMENT CENTER AND ANYBODY OFFERING SERVICES TO SMALL BUSINESS OWNER AS PART OF OUR ECOSYSTEM. SO WHERE WE DON'T PROVIDE THE SERVICE, OR MAYBE TO PROVIDE A BETTER SERVICE WILL REFER OUT TO MAKE SURE IT'S A TIMELY UH, REFERRAL FOR THE SMALL BUSINESS OWNER. ON THE METRO SIDE. SO THIS IS THE NINE LOANS THAT WE HAVE IN THE METCO ROTATING OR REVOLVING LOAN PORTFOLIO. SMALL BUSINESS START UP LOANS, COMMERCIAL PROPERTY LOANS, GAP LOANS, ESPECIALLY LOANS. SO THIS REALLY WORKS CLOSELY WITH OUR SMALL BUSINESS TEAM, AND THEY'RE INTERTWINED ON THE KEY INDUSTRY SIDE, SO THE PRIMARY PART OF OUR WORK IS EXISTING BUSINESS RETENTION AND EXPANSION OF THE BUSINESSES HERE IN LOUISVILLE, JEFFERSON COUNTY. SO MORE THAN 80% OF OUR WORK, WHETHER IT'S PROJECTS OR CASES THAT CAN ARRANGE ANYTHING FROM AN EXISTING BUSINESS HAS A PROBLEM WITH WORKFORCE. THEY WANT TO RENAME A STREET. WE'RE HERE TO HELP THEM NAVIGATE LOUISVILLE METRO GOVERNMENT BUT ALSO OUR PARTNERS STATE REGIONAL LEVEL UTILITIES. SO WE'RE THE WE LIKE TO BE THE CONCIERGE. ONE STOP SHOP FOR ANY QUESTIONS, COMMENTS CONCERNS COMPLAINTS THAT MIGHT BE A BARRIER TO THEM OPERATING OR GROWING HERE. WORKFORCE SOLUTIONS IS REALLY ALWAYS THE TOP QUESTION. AND THAT'S EVERYTHING FROM WHAT THE ACADEMIES OF LOUISVILLE K THROUGH 12 ARE DOING FOR PIPELINE OR J. C T C UNIVERSITIES HERE IN THE AREA, BUT ALSO BEST PRACTICES AND ADDITIONAL RESEARCH THAT WE CAN PROVIDE ON WHAT COMPETITIVE WAGES LOOK LIKE. WHAT COMPETITIVE BENEFIT BENEFITS PACKAGES LOOK LIKE? WE NEVER.UM, SO TELL ONE COMPANY WITH ANOTHER COMPANY IS DOING BUT CERTAINLY BECAUSE WE HAVE A GOOD
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RADAR. WE CAN PROVIDE THEM SOME IDEAS ON HOW THEY COULD BE MORE COMPETITIVE. WE HAVE STRONG HIGHER EDUCATION PARTNERSHIPS HAVE KIND OF TALKED ABOUT. WE HAVE THE STATE AND LOCAL INCENTIVES SIDE WHICH WE'RE GOING TO TALK ABOUT HERE IN A MOMENT, AND THEN WE ALSO HELP THESE COMPANIES WITH SITE SELECTION AGAIN. THAT'S EVERYTHING FROM FINDING LAND TO EXISTING BUILDINGS TO YOU KNOW WHERE THEY WOULD BE ABLE TO DRAW THE BEST TALENT OF SORT OF WORKFORCE, HOUSING AND FOLKS WHO CAN ACCESS THEM EITHER THROUGH PUBLIC TRANSIT OR THEIR OWN MEANS. AND THEN WE DO A BIT OF LEAD DEVELOPMENT AS WELL. VERY, VERY TARGETED LEAD ATTRACTION THAT ALIGNS WITH OUR STRATEGY AND OUR KEY INDUSTRIES. UM SOME WHAT WE DO AND DON'T DO. WE TALKED. SORRY ALREADY GOT INTO A LITTLE BIT OF THIS, BUT WHAT WE DO IS SERVICE TO ALL EXISTING COMPANIES AND BUSINESSES IN GLOBAL JEFFERSON COUNTY. IT DOESN'T MATTER HOW BIG YOU ARE.HOW SMALL YOU ARE WHERE YOU ARE, IF YOU'RE IN THE 399 SQUARE MILES OF JEFFERSON COUNTY, WE ARE RESPONSIVE TO YOU. AND WE WILL WORK WITH YOU FOR ANY OF THE NEEDS THAT YOU MIGHT HAVE.
UM WE DO SOME VERY TARGETED BUSINESS ATTRACTION. AS I NOTED, ACTUALLY, THE GROUP VIDEO REFERENCING EARLIER. IDEX IS A COMPANY THAT ACTUALLY RELOCATED A PRETTY VEHICLE LAB HERE A FEW YEARS AGO BECAUSE OF UPS WORLD COURT. UM AND THAT'S YOU KNOW, A REALLY GREAT STRATEGIC OPPORTUNITY FOR US AND THAT AIRLIFT, SO WE'VE BEEN ABLE TO GROW A COUPLE COMPANIES HERE BECAUSE OF THAT. AND THEN THE INCENTIVES. WE'LL TALK ABOUT OUR PERFORMANCE BASED ON JOB CREATION INVESTMENT. WHAT WE DON'T DO. WE DON'T JUST BLINDLY HUNT HEADQUARTERS AROUND THE COUNTRY. WE DON'T JUST GO DOWN THE YELLOW PAGES AND TRYING TO START CALLING PEOPLE. WE ALSO DON'T OFFER ANY CASH INCENTIVES OR GRANTS UPFRONT. EVERYTHING AGAIN IS PERFORMANCE BASED, AND COMPLIANCE IS CHECKED. AND THEN WE AGAIN WE DON'T DO ANY SPECIFIC SERVICES. ONLY CERTAIN COMPANIES ARE CONSTITUENTS OR ARE MEMBERS. RIGHT? SO EVERYBODY IN YOUR DISTRICTS OR THE FOLKS WHO CAN GIVE US A CALL AT ANY TIME AND REQUEST OUR SUPPORTER OR HELP? UM WHERE DO OUR PROJECTS COME FROM? SO ABOUT 70% OF THEM COME FROM THESE B R E MEETINGS WHERE WE'RE CONSTANTLY OUT IN THE COMMUNITY TALKING TO COMPANIES, SO THAT MEANS THAT AT ANY GIVEN TIME ABOUT 70% OF OUR PROJECT VOTE HAS COMPANIES LOOKING TO EXPAND HERE. ANOTHER 15 OR COMING FROM VERY TARGETED LEAD CREATION. WE KIND OF TALKED ABOUT THEIR AND THEN ARE FPS FROM PARTNERS LIKE THE STATE CLI UTILITY PARTNERS WILL SOMETIMES BRING US PROJECTS AS WELL, WHERE THEY FOUND A SITE IN JEFFERSON COUNTY. WE ACTUALLY HAD A GREAT SITE VISIT TODAY WITH SOME OF OUR UTILITY PARTNERS AND WE LOOK FORWARD TO AN ANNOUNCEMENT HOPEFULLY SOON HOPEFULLY WILL MAKE THE CUT LIST AND BE ABLE TO ANNOUNCE SOMETHING WITH YOU ALL SHORTLY. FROM A PROCESS STANDPOINT, YOU KNOW, WE WORK WITH THESE COMPANIES EVERY STEP OF THE WAY SO IT MAY COME IN AS AN INITIAL RFP WILL COME TO TOWN . THEY'LL DO A SITE VISIT WILL SEE SITES. UM WILL DO ADDITIONAL RESEARCH ON WORKFORCE OR OR OR ANYTHING THAT THEY'RE ASKING FOR EVEN COMMUNITY CONNECTIONS THAT THEY'RE ASKING BECAUSE THEY WANT TO BE HERE BECAUSE THERE ARE CERTAIN COMPANIES. WE CAN CERTAINLY MAKE SOME OF THOSE CONNECTIONS. AS FOR THEM AS WELL. UM SO THERE'S A LOT OF WORK THAT GOES INTO THE BACKGROUND BEFORE WE EVEN APPROACHED THE INCENTIVE DISCUSSION. AND THAT DISCUSSION REALLY BEGINS WITH SOME CORE ELEMENTS AROUND NUMBER OF JOBS BEING CREATED. THESE ARE NET NEW JOBS. IT'S THE WAGE THAT THEY ARE GOING TO BE PAYING, AND WE HAVE A $21 AN HOUR MEDIAN WAGE THRESHOLD. UM WE BELIEVE THAT'S MORE FAIR AND ACCURATE MEASUREMENT OF WHAT A COMPANY IS GOING TO BE PAYING THAT ALIGNS PRETTY CLOSELY WITH OUR FAMILY SUPPORTING WAGE HERE IN JEFFERSON COUNTY. AND THEN THE ACTUAL CAPITAL INVESTMENT AT THE SITE, AND THAT CAN INCLUDE BUILD OUT LEAST PURCHASES, ETCETERA. SO THOSE ARE THE THREE BIG NUMBERS THAT WE LOOK FOR, AND IF THEY MEET THE MARK ON ALL OF THOSE FROM THE QUALIFICATIONS ON OUR SIDE AND THE STATESIDE, WE WILL BEGIN A DISCUSSION ABOUT INCENTIVES. UM BUT IT'S NEVER OUR FIRST DISCUSSION. IT'S USUALLY THE PART OF THE LAST PIECE. IT'S THE ICING ON THE CAKE, AS WE SAY. UM BUT WE WANTED TO GIVE A QUICK OVERVIEW OF THOSE AS WELL. UM SO WITH THAT THIS IS WHERE WE REALLY THINK UP CLOSELY THROUGH THIS ENTIRE PROCESS WITH OUR FRIENDS IN THE CABINET FOR ECONOMIC DEVELOPMENT OF COMMONWEALTH, BUT WHEN IT COMES TO THE INCENTIVE PIECE, THERE IS A LOCAL PARTICIPATION. THERE'S A STATE MATCH THE PROCESS FOR APPROVAL AND SUCH AS WITH THE STATE BOARD, SO WITH THAT, I'LL ASK CHRISTINA TO WALK US THROUGH SOME OF THIS. THANK YOU VERY MUCH AGAIN. CHRISTINA SLATTERY, THE COMMISSIONER OF OUR BUSINESS AND COMMUNITY DEVELOPMENT TEAM AT THE ECONOMIC DEVELOPMENT CABINET. SO UM, YOU KNOW, AS HAS BEEN SAID WE ARE PRIVILEGED TO BE ABLE TO REPRESENT ALL 120 COUNTIES IN KENTUCKY, SO OUR PARTNERSHIPS WITH LOCAL COMMUNITIES ARE CRITICAL TO THE SUCCESS OF ANY OF OUR RETENTION , EXPANSION OR NEW LOCATION PROJECTS, BOTH FROM THE SERVICE DELIVERY SAD AND ON THE INCENTIVE PARTNERSHIP SIDE. UM I'M GONNA TALK A LITTLE BIT ABOUT TWO OF THE PROGRAMS TODAY THAT YOU PROBABLY SEE MOST OFTEN COME IN FRONT OF YOU FOR PROJECTS THAT I WAS REALLY ONE OF KENTUCKY'S FLAGSHIP INCENTIVE PROGRAMS, AND THAT IS THE KB APP PROGRAM. I'M GOING TO BE VERY HIGH LEVEL AND HAPPY TO SHARE.
YOU KNOW, FURTHER DETAILS OFFLINE IF YOU WOULD LIKE, BUT THE KENTUCKY BUSINESS INVESTMENT PROGRAM HAS BEEN ALLUDED TO WAS , IT'S BASED ON, YOU KNOW, IT'S A PERFORMANCE BASED PROGRAM BASED ON NEW JOB CREATION NEW INVESTMENT INTO THE STATE OF KENTUCKY AND AN AVERAGE WAGE TARGET. SO WE LOOK AT THOSE THREE ITEMS ALONG WITH WHO IS THE COMPANY, YOU KNOW? WHAT TYPE
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OF EMPLOYEES ARE THEY GOING TO HIRE? YOU KNOW, WE REALLY EVALUATE AND DO A LOT OF DUE DILIGENCE ON ALL OF THESE PROJECTS. BUT UM, WE WORK TOGETHER TO PUT FORTH AN INCENTIVE PACKAGE TO THAT COMPANY ONCE THEY HAVE LOCATED A PLACE IN KENTUCKY THAT THEY'RE CONSIDERING, OFTENTIMES THESE ARE VERY COMPETITIVE PROJECTS, UM, WITH OTHER STATES OR SOMETIMES OTHER OTHER COUNTRIES, SO THE INCENTIVES ARE ARE OFTEN THE VERY LAST PIECE OF THE PUZZLE. BUT YOU KNOW WHAT TENDS TO BRING THE PROJECTS HOME THERE IN THE END, BUT THE KBR PROGRAM IS PERFORMANCE BASED IN THAT THE COMPANY DOES NOT RECOVER ANY OF THE INCENTIVE THAT WE PRELIMINARILY APPROVED, WHICH IS EITHER A WAGE ASSESSMENT ON NEW EMPLOYEES HIRED OR A CORPORATE INCOME TAX CREDIT UNTIL THEY BEGIN. UM PERFORMING THE PROJECT , SO THERE IS A PRELIMINARY FINAL APPROVAL IN AN ACTIVATION , ALL OF WHICH CAN BE EXTENDED TO A CERTAIN EXTENT TO GIVE A COMPANY SOME FLEXIBILITY, ESPECIALLY ON A GREENFIELD PROJECT WHERE THEY MAY NEED TO, YOU KNOW TO BUILD, WHICH COULD TAKE 3 TO 4 YEARS OR THEY CAN REDUCE THAT TIME. IF IT'S A COMPANY, SPECIFICALLY MAYBE AN EXPANSION PROJECT THAT THEY'RE ABLE TO MOVE PRETTY QUICKLY. SO THERE ARE THREE DIFFERENT PHASES TO THE PROGRAM. WE GET A LOT OF GREAT FEEDBACK FROM COMPANIES THAT IT IS VERY FLEXIBLE ON TIMELINE BECAUSE ITS PERFORMANCE BASED UNLIKE OTHER STATES, THERE'S NO CLAWBACK BECAUSE IT'S NOT CASH THAT YOU'RE GETTING UP FRONT THAT YOU'RE BEING PENALIZED FOR LATER ON, IT'S AGAIN. IT'S PERFORMANCE BASED IN PRO GRATED, BASED ON UM, YOU KNOW THE OUTCOME OF THE PROJECT . SO, FOR EXAMPLE OF A COMPANY ONLY HITS 80% OF THEIR TARGETS ON NEW INVESTMENT OR JOBS OR WAGES, THEN YOU KNOW, IT'S A PRO RATA, UM, RECOVERY FOR THEM ON THEIR INCENTIVE PROGRAM, SO THAT PARTICULAR PROGRAM DOES REQUIRE A LOCAL PARTICIPATION BECAUSE IT'S IMPORTANT. FOR US TO MAKE SURE THAT THAT COMPANY THAT PROJECT IS THE RIGHT FIT FOR KENTUCKY AND FOR THE LOCAL COMMUNITY, SO IT'S REALLY DRIVEN BY THAT LOCAL PARTICIPATION PIECE AND WE REALLY APPRECIATE. YOU KNOW, LOUISVILLE, TAKING A STRATEGY TO ONLY PROMOTE THOSE HIGHER WAGE TYPE POSITIONS FOR THESE INCENTIVES BECAUSE WE FEEL LIKE IT REALLY ATTRACTS HALF UM, YOU KNOW HOW PERFORMING JOBS. ALSO UM, SAY ON, YOU KNOW, THE PERFORMANCE BASE AT ALL OF OUR PROGRAMS ARE LISTED ON OUR WEBSITE. WE HAVE FULL TRANSPARENCY IF YOU WANT TO UNDERSTAND WHAT A PROJECT WAS AWARDED IF YOU WANT TO PARTICIPATE IN A IN AND CARED FOR MEETING, WHICH IS THE KENTUCKY ECONOMIC DEVELOPMENT FINANCE AUTHORITY. ALL OF OUR BOARD MEETINGS ARE OPEN TO THE PUBLIC. YOU CAN ZOOM IN COME TO OUR OFFICE. AND UM, YOU KNOW YOU CAN SEARCH ON OUR DATABASE. IF YOU WANT TO KNOW AS FAR BACK, UM, YOU KNOW AS MANY, MANY YEARS WHAT THAT PARTICULAR COMPANY WAS AWARDED YOU CAN SEE ON AN ANNUAL BASIS WHAT THEY REPORTED. I WILL ALSO SAY FOR THE PROGRAMS THAT WE HAVE SPECIFICALLY THE KENTUCKY BUSINESS INVESTMENT PROGRAM THAT YOU ARE MOST FAMILIAR WITH. WE MANAGE ALL OF THE COMPLIANCE IN OUR OFFICE AT THE ECONOMIC DEVELOPMENT CABINET . SO UM, ABOUT A THIRD OF OUR STAFF IS DEDICATED TO COMPLIANCE . AND YOU KNOW, WE GO THROUGH AUDITS ANNUALLY, AND THOSE ARE ALWAYS UM, YOU KNOW, REALLY WELL DONE, AND WE WORK WITH THE DEPARTMENT OF REVENUE TO MAKE SURE THAT COMPANIES ARE MEETING THE TARGETS AND GETTING THE AWARDS THAT THEY WANT OR THAT THEY WERE APPROVED FOR SO THAT THAT PROGRAM CAN BE UP TO 10 YEARS FOR THE COMMUNITY, SO IT WE REALLY LIKE THE PROGRAM BECAUSE IT HELPS THAT COMPANY TO COMMIT TO KENTUCKY, KENTUCKY COMMITS BACK AND THEN THERE'S A LONG TERM PERIOD IN WHICH WE CAN MONITOR AND HOLD THE COMPANY ACCOUNTABLE FOR RETAINING THOSE JOBS. IS THAT A. IS THAT RIGHT? GIRLS PRESENTATION. DO YOU HAVE ANYTHING ELSE? THAT'S THE OVERVIEW OF YOUR WE WERE GONNA PROVIDED AND LEAVE PLENTY OF TIME FOR QUESTIONS AS WELL AS YOU ALL HAVE HAVE ONE THAT JUST JUMPS OUT. I THINK IT'S THE LAST THING YOU SAID MS SLANDER EARLY.SLATTERY SLATTERY. SORRY. OKAY. IS THERE A BECAUSE WE SEE THESE THINGS AND SOMETIMES MAYBE IT TAKES FOLKS A LITTLE LONGER TO GET STARTED OR GET THEIR DUCKS IN ROW TO GET IT OFF THE GROUND.
WHAT IS THE OUTSIDE TIMEFRAME BY WHICH YOU HAVE TO ACTIVATE THOSE INCENTIVES? CAN IT DID YOU SAY 10? DO YOU HAVE UP TO 10 YEARS TO ACTIVATE, SO I'LL TALK ABOUT THE DIFFERENT STEPS IN THE TIMELINE? SO WE START PREPARING APPLICATIONS TO GO FOR OUR BOARD APPROVAL ABOUT 30 DAYS PRIOR TO THE BOARD MEETING BECAUSE THERE'S A LOT OF DUE DILIGENCE AND, YOU KNOW, SUPPLEMENTAL APPLICATION MATERIALS THAT GO WITH THAT APPLICATION. WE TAKE IT TO THE HEAD FOOTBOARD KENTUCKY ECONOMIC DEVELOPMENT FINANCE AUTHORITY THAT BOARD MEETS THE LAST THURSDAY OF EVERY
[00:35:01]
MONTH, SO THERE'S ALWAYS A BOARD MEETING. THAT WE'RE WORKING TOWARDS WITH THE EXCEPTION OF NOVEMBER AND DECEMBER, WHICH HAVE A COMBINED MEETING, SO AT THAT TIME, THE COMPANY WILL GET A PRELIMINARY APPROVAL, WHICH IS , UM, YOU KNOW, OFTEN WHEN WE GET TO CELEBRATE THAT THE COMPANY IS SELECTING KENTUCKY AND, UM, YOU KNOW, ARE GOING TO DO A PROJECT HERE, AND AT THAT POINT, THE COMPANY CAN START THEIR PROJECT THEY CAN BEGIN TO HIRE THEY CAN BEGIN. TO INVEST IN KENTUCKY. THEY HAVE UP TO THREE YEARS TO GO FOR A FINAL APPROVAL, SO FINAL APPROVAL IS ALSO HAPPENED THAT CARED FOR AND THAT'S WHERE WE SOLIDIFY THAT AGREEMENT. SO FROM PRELIMINARY TO FINAL IF, FOR EXAMPLE, THE JOBS HAVE INCREASED SIGNIFICANTLY OR MAYBE THE CUSTOMER HAS ACQUIRED A NEW CONTRACT AND THE PROJECT HAS GROWN. WE NEED TO MAKE ADJUSTMENTS. ADDRESS MAY HAVE CHANGED THINGS LIKE THAT. THAT REALLY SOLIDIFY THE AGREEMENT BETWEEN THE COMMUNITY, THE STATE AND THE COMPANY GO TO K EFFORT, THE FINAL APPROVAL FROM FINAL THE COMPANY HAS UP TO TWO YEARS TO ACTIVATE. SO TO ANSWER YOUR QUESTION IT CAN BE UP TO YOU KNOW, FIVE YEARS BEFORE THEY START ACTIVATING WHEN THEY ACTIVATE. THAT MEANS THEY HAVE CREATED AT LEAST 10 JOBS AND THEY ARE ELIGIBLE TO START RECOVERING THE INCENTIVE THAT WE THAT WE PUT FORWARD TO GO TO FINAL APPROVAL. A COMPANY ONLY HAS TO HAVE, UM EITHER PURCHASE THEIR BUILDING OR SANDAL IS SO YOU MAY SEE A PROJECT GOING FOR FINAL APPROVAL THAT IT DOESN'T SEEM LIKE THE PROJECT. BUT IF THEY IF THEY PURCHASED OR SAND AND ARE READY TO DO THEIR INVESTMENT THEY CAN AND I'LL JUST IF IT'S OKAY, A COUPLE OF PIECES ALONG THAT PROCESS FROM OUR STANDPOINT, UM AT THE PRELIMINARY APPROVAL, THAT'S WHEN YOU USUALLY WOULD SEE A PRESS RELEASE OR SOME SORT OF PRESS ANNOUNCEMENT, DEPENDING ON THE TYPE OF PROJECT IN SIZE.THERE IS A BUT FOR CLAUSE IN THE GI LEGISLATION, AND, BUT FOR THESE INCENTIVES, THE PROJECT OTHERWISE WOULD NOT OCCUR HAPPEN , AND BECAUSE OF THAT, THAT'S WHERE WE HOLD THE PROJECTS IN A CONFIDENTIAL MANNER. WE CODE NAME THEM. UM BECAUSE IF ANYTHING WERE TO GET OUT OF THE MEDIA, OR, YOU KNOW, AT LEAST, WERE TO BE SIGNED ANY PUBLIC PROCLAMATION ANY HIRING COULD OR WOULD DISQUALIFY THE COMPANY FROM THAT PROGRAM? UM SO WE COUNSEL THE COMPANY'S ON THAT VERY CLOSELY WITH OUR FRIENDS AT THE STATE TO BE CAREFUL SO OFTEN. WHY WE HAVE, YOU KNOW, SIGNED AN N D A WITH HIM AS WELL, JUST AS THAT MECHANISM, BUT WE WORK, YOU KNOW, CONFIDENTIALLY WITH THE COMPANY AT THE PRELIMINARY POINT, THEY CAN SAY AND DO WHATEVER THEY WANT, AND THAT'S AGAIN WHERE THEY START TO REALLY GO THROUGH THE PROCESS OF SIGNING THE LEASE BUYING THE PROPERTY. ME. AND PREPARING FOR THAT FINAL APPROVAL, AND, AS CHRISTINA NOTED, THE PROJECT MIGHT CHANGE . IT MIGHT CHANGE BASED ON ADDITIONAL PARCEL THAT THEY PURCHASE NEARBY THAT CAME AVAILABLE MIGHT BE A CONTRACT THEY GET. WE SEE THIS QUITE OFTEN, AND THAT'S WHERE THEY CAN MODIFY THE JOB TOTALS. THE INVESTMENT TOTALS UP OR DOWN WITHOUT, YOU KNOW, HAVING ISSUES AND THEN THAT'S WHEN WE WOULD GO BACK AND SAY THIS IS WHAT WE BELIEVE THE PROJECT TO BE. AT THAT POINT, THE COMPANY CAN CAN REALLY DO A DEEPER DUE DILIGENCE, ESSENTIALLY. THANK YOU. I JUST HAVE ONE SORT OF THING THAT I ATTEND TO TALK ABOUT A TEND TO TALK ABOUT THIS WITH JLO, AND THEY CALLED BECAUSE THEY HAVE A BROADER RANGE THAN LET'S SAY. THAT YOU MISS SLATTERY, BUT THEY DO THEY DO CROSS STATE LINES BUT CERTAINLY HAVE BEEN ONE OF THE THINGS THAT I FIND WITH ECONOMIC POLICY AND I'D LOVE TO SEE US LOOK AT CHANGING SOME OF OUR ECONOMIC POLICY. IT'S SO BOUNDARY DRIVEN ONLY GET TAX INCENTIVES. I ONLY GET AH! AWARDED JOBS IF IT'S IN WITHIN THIS COUNTY, BUT CLEARLY, YOU KNOW, WE HAVE THE MAJOR AIRPORTS SO SOUTHERN INDIANA COMPANIES BULLITT COUNTY NOW ALL THE WAY DOWN TO GLENDALE. UM PROBABLY LOCATING HERE CLOSELY BECAUSE YOU HAVE UPS AND OTHER THINGS, BUT BECAUSE THEY'RE GOING TO LOCATE THEIR THEIR INCENTIVES, WHATEVER THE TAX BASE IS GOING TO BE LARGELY TO OCCUPATIONAL TAX TAKEN BY THAT. ENTITY OR THAT CITY THAT COUNTING BUT.
DON'T USE METRO ROADS. THEY MAY LIVE IN METRO. THEY MAY COME TO METRO ALL THE TIME. WE MAY HAVE A LOT OF EXPENSES, AND I USE THAT AS AN EXAMPLE. BUT YET WE'RE NOT ABLE TO SORT OF SEE DIRECT BENEFIT, SO I GUESS GOING FORWARD. MAYBE IT'S MY COMMENT HERE. I WOULD LOVE TO SEE WAYS THAT WE WOULD HAVE TAX AGREEMENTS WITH ACROSS THE FOLKS ACROSS THE RIVER. WITH SURROUNDING CAMERAS. WE ALWAYS TALK ABOUT AN M S. A WE HAVE WE TALKED ABOUT, AT LEAST IN PROCUREMENT. IF YOU, UH, SCRATCH OUR BACK, WE'LL SCRATCH YOURS. SO TO SPEAK. WELL WILL PLOW ARISON IS IF YOU IMPLY YOURS TO COMPANIES LOCATED HERE. I JUST WOULD THINK MOVING FORWARD SOMEHOW, SOMEWHERE. I KNOW IT'S PROBABLY A BIGGER ISSUE TODAY, BUT I MIGHT EVEN ASK YOUR THOUGHTS ABOUT THAT. HOW WE CAN SORT OF BREAK DOWN THOSE BARRIERS AND MAKE SURE UM, BECAUSE THERE'S A COST ASSOCIATED WITH WITH SOME OF THESE THINGS, AND I'M GLAD FOR GLENDALE. I THINK IT'S TERRIFIC. THEY'VE GOT 65 BACKED UP A LITTLE BIT WHEN YOU HEAD DOWN
[00:40:02]
SOUTH, BUT IT'S OKAY OR EVEN NORTH. BUT I DO THINK THERE THERE BECAUSE POTENTIALLY OF LOUISVILLE METRO AND THE BUSINESSES WE HAVE. AND HOW WE COULD THAT I DON'T WANT TO SAY PROFIT, BUT SHARING THOSE REVENUES BECAUSE I THINK IT'S IMPORTANT BECAUSE I THINK WE HAVE SOME OF THE COSTS ASSOCIATED WITH THAT PROJECT. I'D GET YOUR THOUGHTS ON MAYBE WHAT OTHER FOLKS ARE DOING AND HOW THEY CAN SORT OF SET A NEW SORT OF SHARING REVENUE AND TAX POLICY. SURE I'LL TAKE A QUICK STAB AND YOU WEREN'T PREPARED TO ANSWER THAT QUESTION. BUT YOU DID COME. SO I HAD WERE ALL THANK YOU FOR THE QUESTION. GENERAL WILL ALWAYS ALWAYS TRY TO BE PREPARED. UM YOU KNOW, THAT'S A VERY GOOD QUESTION. AND I THINK THAT CERTAINLY IN THE CHANGING LANDSCAPE OF WORKFORCE , YOU KNOW, IN THIS NEW WORLD OF REMOTE WORK WHERE FOLKS CAN WORK ANYWHERE, THERE ARE DISCUSSIONS IN THE ECONOMIC DEVELOPMENT FIELD ABOUT DO OUR INCENTIVES NEED TO PIVOT TO BE MORE PERSON BASED, RIGHT, AS OPPOSED TO COMPANY BASED, UM AND TO BE TO GET TO THE REAL CRUX OF IT. NOBODY'S GOTTEN IT RIGHT AT THIS POINT. IT'S A LOT OF JUST SPECULATION AND QUESTION WHAT'S LEGAL AND HOW CAN WE DO THIS? AND THERE ARE COMMUNITIES THAT HAVE PAID PEOPLE TO MOVE TO THEIR COMMUNITY THAT DOESN'T USUALLY WORK OUT TERRIBLY WELL, AT LEAST IN THE DATA THAT PEOPLE STICK AROUND JUST LONG ENOUGH TO GET THE CHECK AND THEY HEAD OUT.UM AND FROM A COMPANY STANDPOINT, IT LOOKS PRETTY DESPERATE. THE OTHER PIECE OF THAT IS, YOU KNOW, IS THERE AN OPPORTUNITY FOR TUITION? FORGIVENESS IS THERE YOU KNOW ALL SORTS OF DIFFERENT MECHANISMS THAT FOLKS ARE LOOKING AT ONE ON A STATE OR LOCAL STANDPOINT. BUT RIGHT NOW , ALL THE INCENTIVES ARE BASED OR PROVIDED TO A COMPANY, RIGHT ? UM AND SO CERTAINLY WITH WITH THE MULTIPLIER EFFECT OF THESE ORGANIZATIONS AND THESE COMPANIES THAT ARE GROWING HERE , IN FACT, I THINK THE PROJECT WE HAD IN TODAY WOULD POTENTIALLY BE A MULTIPLIER EFFECT FROM GLENDALE. UM SO WE CERTAINLY DO GET TO LAND.
HOPEFULLY SOME SOME OTHER ENTITIES AND OTHER PIECES AND PARTS OF THAT. SOME FOLKS MIGHT LIVE UP HERE, SO THERE ARE WAYS THAT WE KIND OF RECLAIM SOME OF THAT. BUT DIRECTLY TO YO POINT. AND NOT EXACTLY, BUT I WAS SORTF A CHRISTINA TO TOUCH ON THE MULTI COUNTY SIDE EMPLOYMENT. WE COULDN'T AGREE WITH YOU MORE ON THE REGIONALISM SIDE OF THINGS. I MEAN, THERE'S EVERY PROJECT THAT WE ARE HAVING , ESPECIALLY FOR INTERNATIONAL COMPANIES COMING TO KENTUCKY FOR THE FIRST TIME TO HEAR ABOUT A CITY OR A COUNTY YOU KNOW, THEY'RE JUST TRYING TO UNDERSTAND THAT THE OVERALL STATE LANDSCAPE SO WE, ESPECIALLY FROM THE WORKFORCE STANDPOINT, ARE TALKING ABOUT REASON. REGIONALISM WITH OUR COMMUNITIES, AND I WILL SAY, UM WE ARE IN THE MIDST OF IT'S ACTUALLY STARTED THIS WEEK AS A CABINET DOING A STRATEGIC PLAN IN PARTNERSHIP WITH THE KENTUCKY ASSOCIATION OF ECONOMIC DEVELOPERS. WE HAVE HIRED A CONSULTANT TO DO THAT, AND THAT THAT PLAN IS SET TO BE DELIVERED BY THE END OF THIS YEAR. AND WHAT YOU ARE MENTIONING IS ONE OF THE ITEMS THAT WE HAVE ASKED THAT CONSULTANT TO FOCUS ON BECAUSE CANDIDLY, UM TO YOUR POINT AND WITH A CHANGING INCOME TAX STRUCTURE, AND KENTUCKY, WE ARE HAVING TO RETHINK THE DIFFERENT TOOLS THAT WE HAVE AND WANT TO INNOVATE. AND, UM YOU KNOW, SEE? SEE WHAT WE COULD BE DOING BETTER. SO I COMPLETELY AGREE WITH IT WITH, YOU KNOW THE THOUGHT AND IT IS ON OUR RADAR TO CONTINUE TO DIG IN. THANK YOU. THANK YOU. I SAY THAT BECAUSE I WANT THOSE PLACES TO SUCCEED. I MEAN, I WOULD RATHER BE THERE THAN I DON'T KNOW, UM, SOMEPLACE IN GEORGIA, BUT AT THE SAME TIME, YOU KNOW, I THINK YOU MIGHT EVEN HAVE MORE FOLKS, YOU KNOW, BODIES, LEGISLATIVE BODIES SAYING, HEY, WE'RE FOR THIS, TOO, AND HERE'S WHY, BUT ESPECIALLY IF THERE IS YOU KNOW SOME ABILITY TO SEE SOME OF THE REVENUE GROWTH, BUT YOU DON'T WANT IT FOR THAT REGION AND I'D RATHER BE IN THE REGION THAN NOT, BUT SOMETIMES IT SEEMS LIKE IT'S A ZERO SUM GAME EITHER WIN OR LOSE IF IT'S NOT IN YOUR COUNTY, YOU SORT OF LOSE AND AT LEAST YOUR GOVERNMENT'S DOING SOME OF THE FUNDING AND THE WAY IT WORKS. SO THE WAY WE COULD WORK TOGETHER, BETTER, I THINK WOULD BE IN IT WOULD BE GREAT, BOTH ACROSS STATE LINES AND ACROSS THE CITY AND COUNTY LINES . SO THANK YOU FOR THAT, AND COUNCILMAN PAGE 18. THANK YOU, MR CHAIR. UM BUT FOR CLAWS AND WE'VE DISCUSSED THIS RELATED LOCAL TIFFS. IT'S TRUE RELATED TO THE DISINCENTIVES, RIGHT? THE EMPLOYEE INCENTIVES AND THINGS WE DO FOR BUSINESSES. WHO AND HOW DO WE VALIDATE? BUT FOR KLAUS, RIGHT, IN OTHER WORDS, I I'LL PICK ON SOME OF THE LOCAL WAYS WE DO IT RELATED TO DEVELOPMENT RIGHT, CREATING A CAPITAL STACK AND THE DEVELOPER SAYS, YOU KNOW, BUT FOR GETTING THIS, YOU KNOW, PROPERTY TAX TIFF. I WOULDN'T DO THIS. SAYS WHO? RIGHT LIKE, WHERE IS IT WRITTEN THAT YOU WOULDN'T DO IT? BUT HOW DO WE PRESSURE TEST YET? THEY WOULDN'T DO THIS IF WE DIDN'T DO IT OTHER THAN JUST THEIR WORD. WELL FROM THE STATE'S PERSPECTIVE. WE LOOK AT MULTIPLE THINGS, SO IF IT'S A NEW LOCATION PROJECT, IT'S TYPICALLY COMPETITIVE, COMPETITIVE IN THAT WE ARE COMPETING COMPETING WITH OTHER
[00:45:01]
STATES OR OTHER COMMUNITIES, SO IT'S A LITTLE BIT MORE STRAIGHTFORWARD BECAUSE WE KNOW UM THAT AGAIN. THEY'VE MADE IT VERY CLEAR THAT THEY'VE GOT THREE DIFFERENT SITES THAT THEY'RE GOING TO MAKE A RECOMMENDATION TO THE BOARD AND AN INCENTIVE PACKAGES. ONE SMALL PIECE OF YOU KNOW THAT TOTAL RECOMMENDATION FOR AN EXPANSION . IT IS A BIT MORE DIFFICULT BECAUSE THE COMPANY IS ALREADY HERE. SO WE LOOK AT THE BUT FOR IS NOT, UM WHETHER OR NOT WE'RE GOING TO LOSE THE PROJECT TO ANOTHER STATE, WHICH SOMETIMES WE CAN WE HAVE SITUATIONS WHERE A COMPANY HAS MANUFACTURING FACILITIES, FOR EXAMPLE, MULTIPLE STATES AND THEY ARE EVALUATING EACH ONE OF THOSE FOR A NEW JOB THAT WAS AWARDED UM, SO IT'S COMPETITIVE IN THAT WAY , OR IT'S COMPETITIVE AS IT JUST MAY NOT HAPPEN TO YOUR TO YOUR POINT, SO WE DO OUR DUE DILIGENCE TOGETHER WITH THE LOCAL COMMUNITY TO RESEARCH AGAIN. THE FINANCIALS THE CAPITAL STACK, UM THE COMPANY HAS TO CERTIFY, UM, LEGALLY THAT , BUT FOR THE INCENTIVES, THE PROJECT WOULD NOT HAPPEN. UM YOU KNOW, THERE ARE BACKGROUND CHECKS. THERE ARE FINANCIAL CLEARANCE, SO WE DO A LOT OF DUE DILIGENCE LEADING UP TO OUR RECOMMENDATION TO THE BOARD FOR APPROVAL, AND THERE ARE TIMES WHERE IT BECOMES EVIDENT THAT IT'S BEEN VIOLATED OR THAT IT'S NOT NECESSARY AND WE CONSIDER THESE INCENTIVES AND NOT ENTITLEMENTS. AND SOMETIMES THAT REQUIRES A TOUGH CONVERSATION THAT I'M SO SORRY. WE WOULD LOVE TO HAVE THE PROJECT HERE. WE HAVE MULTIPLE OTHER SERVICES LIKE WORKFORCE DEVELOPMENT OR CONNECTIONS TO OTHER COMPANIES THAT WE CAN PROVIDE YOU. BUT THE INCENTIVE PIECES IS OFTEN AT THE TABLE AND WE'VE WE'VE HAD MANY OF THOSE TYPES OF CONVERSATIONS AND STILL MAINTAIN A REALLY GREAT PARTNERSHIP WITH THE COMPANIES. I WAS JUST GONNA JUST CHIME OUT WITH IT. I WOULD AGREE WITH THAT. YOU KNOW, WHEN WE TALK ABOUT THESE INCENTIVES THAT WE LAID OUT KIND OF THE BARE MINIMUM ON WAGE AND JOB GROWTH AND CAPITAL INVESTMENT. BUT THEN IT TURNS INTO THIS TOTAL NEGOTIATED TAX INCENTIVE AMOUNT.SO JUST BECAUSE YOU HAVE THESE THREE INPUTS DOESN'T ALWAYS MEAN AN EQUAL OF THIS, AND WE CERTAINLY GET A LOT OF COMPANIES THAT GO ON THE WEBSITE AND SEE WHAT SOMEONE GOT. AND THEY SAY, WHY AM I NOT GETTING THIS AND IT'S BECAUSE OF THE STATE AND LOCAL SIDE. WE DISCUSS IT. WE DISCUSSED HOW COMPETITIVE WE NEED TO BE COMPETITIVE. WE BELIEVE WE NEED TO BE BASED ON THESE FACTORS. AND SO PART OF IT IS A LITTLE BIT OF A GUT RIGHT IF THE COMPANY IS TALKING TO US ABOUT THIS, AND THEY SAY, OH, WE COULD GO OVER HERE. WE REALLY EVALUATE THAT AND THEY MAY NOT GET AS AGGRESSIVE OF AN INCENTIVE PACKAGE IS ANOTHER COMPANY THAT WE KNOW TO CHRISTINA'S POINT HAS SIX SITES AND THEY COULD MOVE THIS LINE HERE IN THAT LINE THERE, SO THERE IS A BIT OF GUT CHECK. THERE'S A LOT OF RESEARCH THAT GOES INTO IT. BUT AGAIN, ALSO TO THE POINT. YOU KNOW, THERE'S THE BACKGROUND COMPLIANCE AND, UM, YOU KNOW, PAPERWORK IN SUCH THE COMPANY HAS TO SIGN THANK YOU. SO IT'S IT SOUNDS TO ME. UH SO IT'S NOT TO SAY THAT THERE ISN'T SOME DUE DILIGENCE DONE. SOUNDS LIKE CERTAINLY THERE IS AND, UH I WOULD HAVE EXPECTED THAT. I'M ALWAYS INTERESTED IN CHECKS RIGHT TO MAKE SURE WE'RE DOING HARD JOB PROPERLY, RIGHT? THE GOVERNMENT THAT IS IN MY USE OF THE WORD WE HEAR. SO IT SOUNDS LIKE ONE CHECK IS THERE'S AN ATTESTATION DONE. AND IF SOMEBODY LET'S SAY ANOTHER DEVELOPER LETS SAY CONCERNED, TAXPAYER, RIGHT SAID, YOU KNOW, I DON'T THINK THIS IS TRUE. THEY COULD CHALLENGE IT. AND THERE COULD BE, UH, LEGAL OR CIVIL REPERCUSSIONS, IF IT WAS PROVEN THAT THAT WASN'T TRUE THAT THAT SOUNDS LIKE ONE PART OF IT. AH! THE ONLY OTHER QUESTION I'VE GOT IS THE RESEARCH AND THE WORK THAT YOU ALL DO IS THAT OBVIOUSLY THE DEAL? YOU KNOW ONCE IT'S PUBLIC, AND THIS IS ALL VOTED ON, RIGHT, SO I'M VERY PUBLIC AT THAT POINT, BUT THE RESEARCH YOU WILL DO RELATED TO THINGS LIKE THE BUT FOR IS THAT ALL PART OF THE PUBLIC RECORD WHEN IT IS VOTING ON? IT IS. IT IS NOT AT THE CAT FOR APPROVAL, AND I'M GOING TO SPEAK JUST FOR THE KBR PROGRAM. WHAT BECOMES PUBLIC COMPANIES NAME PROJECT DESCRIPTION WAGES THAT WILL BE PAID BREAK OUT OF AN INVESTMENT . UM NONE OF THE FINANCIAL OLDER OF THAT BACKGROUND INFORMATION IS MADE PUBLIC. THE KID FOR BOARD MEMBERS, THE KENTUCKY ECONOMIC DEVELOPMENT FINANCE AUTHORITY BOARD MEMBERS SEE THE BOARD MATERIALS. WE TRY TO MAKE SURE THEY HAVE THAT AT LEAST TWO WEEKS PRIOR TO THE MEETING. UM OBVIOUSLY IT IS REVIEWED BY OUR PROJECT MANAGEMENT TEAM, OUR STAFF OUR FINANCIAL INCENTIVES, TEAM EVERYONE INTERNALLY, BUT NO. SARAH DOES NOT ALL MADE PUBLIC. OKAY UH, I MEAN, LOOK, I'M IN SUPPORT GENERALLY IN SUPPORT OF THE PROGRAM AND THE TOOL I DO AGREE THAT IT'S NECESSARY. WITH THAT SAID THAT THAT CONCERNS ME. I YOU KNOW, I THINK BROADER CONVERSATION.
WE'RE NOT GOING TO SOLVE IT HERE, BUT IT CONCERNS ME THAT SOMEHOW SOME WAY THERE'S NOT A YOU KNOW, EVEN THAT BOARD WHO CAN SEE IT? I'M ASSUMING THAT THE STATE BOARD CORRECT CORRECT
[00:50:01]
APPOINTED BY THE GOVERNOR. YES. SO YOU KNOW AGAIN. I'M NOT SAYING THIS GUY. I DON'T CARE WHO THE GOVERNOR IS NO CONDEMNATION OF THIS PARTICULAR GOVERNOR, BUT IT'S NOT WOULDN'T BE THE FIRST TIME IN HISTORY OF THE COMMONWEALTH OF KENTUCKY THAT THE GOVERNOR'S STACKED ABOARD WITH POLITICAL ALLIES, RIGHT? AND SO YOU KNOW, I THINK IT'S IMPORTANT TO ENSURE THERE'S SOME METHODOLOGY. IF SOMEBODY HAS EVIDENCE OR THOUGHT PROCESS AND MEMBERS OF THE PUBLIC THAT WE WERE GIVING AWAY INCENTIVES WHERE THERE WERE ALTERNATIVES OR WHERE THEY WERE MAKING OUT. YOU KNOW IF THAT ORGANIZATION WAS MAKING STATEMENTS THAT WERE UNTRUE, THEY HAVE THE ABILITY TO CHALLENGE IT. I GET THAT HAS TO BE BALANCED AGAINST UM A LOT OF THIS PROPRIETARY BUSINESS INFORMATION, SO I GET THAT I THINK WE JUST NEED TO SORT THAT OUT. WE'RE NOT GOING TO SORT IT OUT TODAY, BUT SOMETHING TO THINK ABOUT TO ENSURE THAT WE HAVE THAT BALANCE BECAUSE THERE HAVE BEEN UM, ACCUSATIONS FROM TIME TO TIME THAT THESE ARE THESE INCENTIVES ARE PROVIDED TO ORGANIZATIONS. AND HOW DO WE KNOW WHY WE? HOW DOES THE PUBLIC KNOW FOR CERTAIN? HOW CAN THEY TEST THAT? IT WAS DONE PROPERLY. BUT, UM BUT I APPRECIATE YOU ANSWERING THE QUESTION, AND THERE'S CLEARLY SOME CHECKS. IT'S JUST I'M JUST NOT SURE IF IT'S IN ITS TOTALITY. THE WAY THAT THE PUBLIC WOULD EXPECT IT TO BE. BUT WE CAN DEBATE THAT ANOTHER FORM. THANK YOU FOR YOUR TIME. I WOULD JUST ADD, EVEN FOR INCENTIVES THAT DON'T REQUIRE ANY SORT OF LOCAL PARTICIPATION LIKE A SALES TAX REFUND. WE DO ASK FOR A LOCAL LETTER OF SUPPORT JUST TO MAKE SURE THAT YOU KNOW THE COMMUNITY IS ON BOARD. SO THANK YOU. AND I DO THINK WE'VE SEEN EVIDENCE WHERE WE'VE HAD COMPANIES COME IN HERE. INTO KENTUCKY AND PROMISE LOTS OF THINGS AND THEY DIDN'T COME TO FRUITION. AND I KNOW THE GENERAL ASSEMBLY AND ARTISAN MANNER CALLED BACK MONEY FROM A STEEL COMPANY THAT NEVER CAME TO FRUITION AND EASTERN KENTUCKY. YES ALONE, SO I DO THINK THERE WAYS AND GROUNDS THAT FOLKS DO THAT ONE LAST QUESTION. I HAD YOU ALL BROUGHT UP. I KNOW WE'VE TALKED A LOT ABOUT INCENTIVES THAT SEEMS TO BE WHAT WE GET MOST OF THEN YOU MENTIONED WHAT WE CARE ABOUT RETENTION, BUT I DIDN'T HEAR MAYBE FROM THE STATE . WHAT JUST, YOU KNOW, UM, HIGH LEVEL. WHAT WHAT'S AVAILABLE TO COMPANIES? HEY, I LIKE IT HERE. BUT YOU KNOW, IT'S I'M NOT NOT DOING AS WELL. I WANT TO MOVE TO AUSTIN, TEXAS. I DON'T KNOW MAKING THAT UP. BUT WHAT DO WE DO TO ENSURE? WHAT CAN WE OFFER? THOSE SORT OF COMPANIES IS IT I KNOW IN OUR CASE, IT'S SOME SORT OF LOANS, MEDCO LOANS THAT MAY BE FOR THAT. BUT WHAT DOES THE STATE HAVE TO OFFER THOSE COMPANIES THAT STAYING HERE? BEEN HERE FOR A LONG TIME? AND YOU KNOW WE WANTED TO STAY.SURE, UM, WE HAVE A VARIETY OF DIFFERENT TOOLS. ONE. I WOULD SAY THAT'S USED PRETTY FREQUENTLY IS THE KENTUCKY RETENTION ACT K R. A. THIS PROGRAM IS DESIGNED JUST FOR THE TYPE OF SITUATION THAT YOU'RE REFERRING TO DOES REQUIRE SOME SORT OF AN INVESTMENT INTO THE FACILITY BECAUSE TYPICALLY, WHAT WE SEE IS A COMPANY NEEDS TO MODERNIZE NEEDS TO ADD MY OUT OF EIGHT. AUTOMATION EXCUSE ME, AND YOU'RE NOT GONNA SEE JOB GROWTH WITH THAT PARTICULAR. UM YOU KNOW, AUTOMATION. IF ANYTHING, THERE COULD BE A SLIGHT DIP IN EMPLOYMENT, BUT THOSE JOBS ARE PRIMARILY BECOMING UP SKILLED. THEY'RE PAYING MORE. SO THERE IS A PROGRAM FOR COMPANIES THAT WANT TO REINVEST THAT THEY CAN GET A CORPORATE INCOME TAX CREDIT. ON YOU KNOW NEW LIABILITIES THAT ARISE FROM THE PROJECT. OBVIOUSLY THERE IS THE KENTUCKY JOBS OR ATTENTION ACT THAT TWO VERY LARGE COMPANIES AND IN THIS COMMUNITY USED WITH YOU, UPS AND G E. THAT IS A RETENTION TOOL THAT YOU KNOW HAD THE COMPANY HAS TO HAVE AT LEAST 1000 EMPLOYEES AND $100 MILLION INVESTMENT. SO YOU'RE YOU'RE NOT SEEING THAT USED AS OFTEN. UM AND THEN, LASTLY, THINGS LIKE INDUSTRIAL REVENUE BONDS TO OBEY PROPERTY TAX DON'T REQUIRE SORT OF A NEW INVESTMENT WORKFORCE.
INCENTIVE PROGRAMS ARE REALLY CRITICAL. WE HAVE BOTH GRANTS AND TAX CREDIT PROGRAMS THAT DON'T REQUIRE ANY NEW JOB CREATION. UM AND ACTUALLY ARE UTILIZED VERY HEAVILY BY OUR LOCAL COMPANIES. THANK YOU, SIR. THANK YOU. YOU WANT TO FOLLOW UP WITH ANYTHING THAT WE DO? UNCLE LEE? GREAT SERVICE. YES. THANK YOU FOR THE QUESTION. I MEAN, YOU COULD JUST BE BRIEF IN YOUR SHORT, YOU KNOW, YOU'RE RIGHT. MET COLOGNES, OUR PRIMARY TARGET THERE, BUT ALSO WHAT WE FIND IS WHEN IT COMES DOWN TO, FRANKLY RELATIONSHIPS AND SERVICE AND THINGS THAT WE CAN DO IN PROVIDING CONNECTIONS FOR WORKFORCE. UM AND SUCH THAT FOLKS FIND THAT IT'S USUALLY, YOU KNOW, GOOD TO DO BUSINESS HERE. SO WE BUILD ON THAT. I APPRECIATE IT. UM. COUNCILMAN ANGLE. NO YOU DIDN'T QUEUE IN. DO YOU HAVE ANY QUESTIONS? YOU'VE GOT ALL THE ANSWERS WERE
[00:55:01]
SEVERELY ALMOST OUT OF TIME. MR UH, BUT I WOULD. I WOULD LOVE TO KNOW HOW WE ARE PERFORMING THOUGH. BENCHMARK VERSUS VERSUS SOME OF THESE OTHER STATES AND WHEN WE LOSE A PARTICULAR PROJECT WHAT IS THE ACTION PLAN IN PLACE, AND HOW ARE WE DOING THERE? I KNOW YOU DON'T WANT TO TALK ABOUT LOSING. WE'RE ALL ABOUT WINNING, AND IT SEEMS TO BE GOING FAIRLY WELL. BUT WHAT ABOUT THOSE? WHAT ABOUT THOSE OTHER THOSE PROJECTS THAT WE DO NOT SECURE? WHAT'S THE ACTION PLAN TO GET BETTER THE NEXT TIME? THANK YOU. SURE YOU KNOW, I JUST FROM A LOCAL PERSPECTIVE AGAIN, YOU KNOW, UM I'LL COVER REAL QUICK THIS YEAR OR CALENDAR YEAR TO DATE NUMBERS. WE'VE LOCATED 34 PROJECTS. IT'S OVER 1000 NEW JOBS IN ABOUT $663 MILLION IN INVESTMENT, SO THAT'S WHAT WE'RE ON TRACK. WE'RE ACTUALLY LITTLE BIT AHEAD OF SCHEDULE FROM LAST YEAR AND LAST YEAR WAS A GREAT YEAR. THERE ARE A COUPLE OF MECHANISMS. WE CERTAINLY LOOK AT WHAT OUR PEER CITIES ARE DOING. AND THOSE ARE THE PEER CITIES THAT WERE IDENTIFIED, YOU KNOW, SOME YEARS BACK BY GREATER LITTLE PROJECT IT'S THE FOLKS YOU THINK OF CINCY. ANDY YOU KNOW NASHVILLE AND SUCH. WE ALSO LOOK AT A FEW OTHERS WHEN IT COMES TO OUR KEY INDUSTRIES WHERE SOMEBODY MIGHT BE OUTPERFORMING US AND WHAT THOSE SPACES OR NOT. WE ALSO LOOK WHAT THEY'RE DOING FROM A PUBLIC POLICY STANDPOINT, WHEN IT COMES TO INCENTIVES OR OTHER OTHER OPTIONS, TO MAKE IT EASIER TO DO BUSINESS IN THOSE PLACES THAT WE COULD BEG, BORROW AND STEAL. UM WHEN WE LOSE A PROJECT, WE CERTAINLY DO OUR BEST TO, YOU KNOW, DO OUTREACH TO THE COMPANY OR THE SITE SELECTOR TO GET INFORMATION ON WHAT WE COULD HAVE DONE BETTER. WHERE WE WERE LACKING. USUALLY IT REALLY COMES DOWN TO COST WHETHER IT'S COST OF UTILITY COST OF THE PROPERTY.ARE INCENTIVES ARE SOME STATE AND LOCAL OR SOME OF THE MOST COMPETITIVE IN THE COUNTRY, AND BECAUSE THEY'RE SO FLEXIBLE, THEIR PERFORMANCE BASED THE RISK THE COMPANY IS VERY LOW, WHICH THEY USUALLY APPRECIATE FOLKS WHO ARE LOOKING FOR CASH UPFRONT OR AUTOMATICALLY A LITTLE BIT SUSPECT. YOU KNOW IF THEY'RE COMING IN AND SAYING, OH, IF I DON'T GET $10 MILLION RIGHT NOW, I CAN'T COME TO YOUR STATE. WELL THEY CAN GO TO TEXAS, TEXAS DOES PLENTY OF CASH UP FRONT. BUT ALSO TEXAS CLAUSE A LOT OF MONEY BACK FROM THOSE COMPANIES WHEN THEY DON'T PERFORM, SO I THINK WE'RE WELL POSITIONED AND AGAIN. USUALLY IT'S GOING TO BE, YOU KNOW COST OF THE PROPERTY AVAILABILITY OF THE RIGHT PROPERTY. IS THAT THE RIGHT SPACE THAT KIND OF THING THAT COMES DOWN TO A LOSS? IT'S RARELY A WORKFORCE OR INCENTIVE ISSUE. THANK YOU VERY MUCH. I HAVE A TAX QUESTION, BUT THAT PERHAPS MAY TAKE MUCH MUCH LONGER THAN THREE MINUTES FROM THE STATE PERSPECTIVE, SO WE'LL LEAVE THAT FOR ANOTHER TIME, MR. CHAIRMAN THANK YOU VERY MUCH.
[Adjournment Note: Agendas are followed at the discretion of the Chair. While an item may be listed, it does not mean all items will be heard and/or acted upon by the Committee.]
THANK YOU. COUNCILMAN ANKLE AND SAYING NO FURTHER FOLKS IN THE QUEUE. WE WANT TO THANK YOU ALL VOTE FOR BEING HERE AND PRESENTING TODAY AND WE'LL HAVE YOU BACK AGAIN. BUT THANKS THANKS FOR ALL THE EXPLANATIONS AND KEEP UP THE GOOD WORK. APPRECIATE YOU. THANK YOU.PLEASURE. WITH NO FURTHER BUSINESS BEFORE US AND NOBODY INJECTING THIS MEETING IS NOW ADJOURNED. THANK YOU.
* This transcript was compiled from uncorrected Closed Captioning.