Site development initiative provides over $85 million in funding
FRANKFORT, Ky. (Feb. 27, 2025) – Today, Gov. Andy Beshear announced the final approval of the second round of the state’s growing site development initiative as a regional project between Knox and Whitley counties was approved for nearly $2.8 million in funding to prompt future investment and job growth.
“Laying the groundwork for future investment and quality job opportunities in our communities is how Kentucky’s economy will continue to thrive,” said Gov. Beshear. “Our speed-to-market and site development initiatives have already led to hundreds of millions of dollars being invested into the commonwealth and is keeping Kentucky competitive when it comes to attracting quality businesses looking to relocate or expand. I look forward to the continued success of these programs and the positive impact they will have on Kentucky.”
The funding is through the Kentucky Product Development Initiative (KPDI), which is overseen by the Cabinet for Economic Development. The initiative provides funding for local communities statewide to increase investment in site and building upgrades to attract future job creation and economic growth.
The Knox County Fiscal Court on behalf of the Knox County Industrial Development Authority Inc., is acquiring 1,556 acres designated as the “Middle Fork Richland Property” to establish a new industrial park. This is a regional project with support from Knox and Whitley counties. The $5.6 million project was approved for $2.8 million in state funding.
Terri Bradshaw, president of the Kentucky Association for Economic Development, emphasized the importance of the KPDI program: “Building strong communities is essential to advancing economic development across Kentucky. KPDI allows us to partner with cities and towns statewide to support their economic development goals while empowering them to pursue their vision for growth. I am excited to hear the announcement of these awards and can’t wait to see economic progress they help make possible in the years to come.”
The initial round of the KPDI Program of 2022 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.
The second round of the program concluded with over $54 million in state support approved for 37 projects throughout the commonwealth. Including local contributions, these projects are generating over $380 million in investments in Kentucky’s sites and buildings portfolio.
Gov. Beshear and the state legislature have allocated an additional $75 million toward the KPDI Program of 2024, which remains in the due diligence phase as all potential projects are being reviewed.
In December 2023, Gov. Beshear announced 46 site and building development projects in 45 counties advanced to the due diligence stage of Round 2 for further review, with $68.8 million available to support the projects.
In January 2024, Gov. Beshear announced the first location to receive approval in the second round of the program, with nearly $2 million allocated to support site development in Campbell County.
In February 2024, Gov. Beshear highlighted site and building development projects across 13 counties. Over $15 million in state funding was awarded to support projects in Clark, Clinton, Graves, Green, LaRue, Laurel, Logan, Montgomery, Nelson, Pulaski, Scott, Wayne and Webster counties.
In March, the Governor recognized projects in two counties. Over $2.3 million in state support was approved for projects in Breckinridge and Pike counties.
In April, Gov. Beshear announced three site and building development projects across Fulton, Hickman and Hopkins counties were approved for nearly $2.6 million in state support.
In May, Gov. Beshear highlighted projects across five counties. Over $5.7 million in state funding was approved for projects in Clay, Garrard, Harrison, Jessamine and Woodford counties.
In June, the Governor announced projects in two counties. Nearly $2.4 million in state funding was approved for projects in Adair and Boone counties.
In July, Gov. Beshear announced more than $1.1 million in state support, with a project in Rowan County and a regional project in Rockcastle County with support from Garrard and Lincoln counties.
In August, the Governor recognized a $222,500 project in Ohio County.
In September, Gov. Beshear announced $2 million in state support for a project in Lyon County.
In October, Gov. Beshear highlighted three projects in Caldwell, Floyd and Perry counties that were approved for $10.2 million in state support.
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.
This investment in site development builds on the best five-year period for economic growth in state history.
Since the beginning of his administration, Gov. Beshear has announced more than 1,100 private-sector new-location and expansion projects totaling over $35 billion in announced investments, creating more than 60,000 jobs. This is the highest investment figure secured during the tenure of any governor in the commonwealth’s history and $14 billion more than the next highest total.
The robust job creation has been accompanied by rising wages across the commonwealth. Since 2022, the average incentivized hourly wage has topped $26 in three 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 $1.3 billion investment in Scott County; and Shelbyville Battery Manufacturing’s $712 million investment, creating 1,572 jobs in Shelby County, among others.
The Governor’s administration also secured the largest General Fund budget surplus and Rainy Day Fund. In 2023, Kentucky recorded over 2 million jobs filled for the first time ever and has stayed above that number ever since.
Kentucky also secured rating increases from major credit rating agencies Fitch Ratings, S&P Global Ratings and Moody’s Investors Service.
Last March, Site Selection magazine ranked Kentucky third nationally and first in the South Central region for economic development projects per capita in its 2023 Governor’s Cup rankings. In April, Site Selection placed Kentucky second in the South Central region and in the top 10 nationally in its 2024 Prosperity Cup ranking, which recognizes state-level economic development agencies for their success in landing capital investment projects.
Gov. Beshear 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. The Governor also announced a new initiative, called New Kentucky Home, to increase economic investment, attain and attract talent, and increase tourism across the state.
For more information on KPDI, visit 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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