Project is 1st approval in Round 2 of Kentucky Product Development Initiative
FRANKFORT, Ky. (Jan. 25, 2024) – Today, Gov. Andy Beshear announced nearly $2 million was approved to support site development in Campbell County, the first location to receive approval in the second round of the Kentucky Product Development Initiative.
“Site and building development is essential to positioning Kentucky for future economic success,” said Gov. Beshear. “The funding this initiative provides gives communities across the state the opportunities and advantages required to have quality sites and buildings to attract growing companies across all industries. I’m excited to announce the first project to receive approval in the second round of the Kentucky Product Development Initiative and look forward to more quality companies growing in the Campbell County community.”
The initiative, overseen by the Cabinet for Economic Development, provides funding for local communities to further invest in site and building upgrades to support future, well-paying jobs and economic growth across Kentucky.
The Campbell County Fiscal Court, in partnership with the Campbell County Economic Progress Authority, will assist in the acquisition and development of a speculative site in southern Campbell County. The state funds will provide nearly $2 million to the project, with the full scope of the project totaling nearly $4 million. The site development project will provide Campbell County with new business opportunities that provide significant job creation and capital investment.
Round 1 of the program concluded in December 2023, with 53 projects statewide approved for $31.2 million in funding. Including local contributions, these projects are generating over $123 million in investments in Kentucky’s sites and buildings portfolio.
In December, Gov. Beshear announced 46 site and building development projects in 45 counties advanced to the due diligence stage of round two for further review, with $68.8 million available to support the projects.
“We continue to see great things happening through KPDI, and this project is no exception. We are grateful to the Kentucky legislature and executive branch for understanding the value of investing state resources on statewide economic development at the local level,” said Haley McCoy, president and CEO of the Kentucky Association for Economic Development (KAED). “Thanks to added support from our utility partners, including Atmos Energy, Big Rivers, Duke Energy, Kentucky Power, LG&E and KU, TVA, Touchstone Energy Cooperatives and Louisville Water, KAED has been able to provide independent third-party consulting support from Site Selection Group to evaluate each application, site and project. As Kentucky’s momentum continues, we look forward to seeing good returns from these strategic investments for years to come.”
During the 2022 legislative session, Gov. Beshear and the Kentucky General Assembly approved $100 million in funding for the initiative.
Site and building development projects are first evaluated by an independent consultant based upon all facets a prospective company would consider, from workforce availability, access to all infrastructure and detailed information on costs associated with development. In turn, these projects will generate increased economic development opportunities and job creation for Kentucky residents. The initiative furthers the efforts of the pilot PDI program, which provided nearly $7 million in state funding for 20 site development projects statewide. Companies have announced economic development projects at 10 of the locations funded during the pilot PDI program, projecting $4 billion of capital investment and 3,500 new, full-time jobs.
Investment in site development throughout Kentucky builds on the best four-year period for economic growth in state history.
Since the beginning of his administration, Gov. Beshear has announced more than 1,000 private-sector new-location and expansion projects totaling over $29.3 billion in announced investments, creating more than 51,700 jobs. This is the highest investment figure secured during the tenure of any governor in the commonwealth’s history.
The robust job creation has been accompanied by rising wages across the commonwealth. The average incentivized hourly wage in 2022 and 2023 topped $26 in consecutive years for the first time.
Gov. Beshear has announced some of the largest economic development projects in state history, which have solidified Kentucky as the electric vehicle battery production capital of the United States: Ford Motor Co. and SK On’s transformative $5.8 billion, 5,000-job BlueOval SK Battery Park in Hardin County; AESC’s $2 billion, 2,000-job gigafactory project in Warren County; Toyota’s $591 million investment in Scott County; and INFAC North America’s $53 million investment in Taylor County, among others.
The Governor’s administration also secured the largest General Fund budget surplus and Rainy Day Fund, as well as the most jobs filled in state history. Last year, Kentucky set the record for the longest period with the lowest unemployment rates in state history.
Kentucky also secured rating increases from major credit rating agencies Fitch Ratings and S&P Global Ratings, and Moody’s Investors Service upgraded Kentucky’s credit outlook from stable to positive.
Site Selection magazine placed Kentucky first in the South Central region and top 5 nationally in its 2023 Prosperity Cup ranking, which recognizes state-level economic development agencies for their success in landing capital investment projects.
Gov. Beshear has also announced a “Supply Kentucky” initiative with the goal of boosting job growth, reducing costs and providing more security in the supply chains of our Kentucky companies.
Learn more about the Kentucky Product Development Initiative at kpdi.ky.gov.
Information on Kentucky’s economic development efforts and programs is available at CED.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov, Instagram @CEDkygov and LinkedIn.
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