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$2M Construction Grant provides new phase for Spec Building
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By Eugenia Jones {Editor}
eugenia@highland.net
eugenia@highland.net
The McCreary County Industrial Development Authority (MCIDA) announced today that it will soon receive a $410,466 grant to support economic growth in the McCreary County Business Park, located in Pine Knot. The grant was made available through the Kentucky Product Development Initiative (KPDI) which was established in 2022 and builds on the commonwealth’s dedicated effort to develop land and buildings in communities around the state to support new, well-paying jobs for Kentuckians and continued economic growth.
McCreary County was one of 11 Kentucky counties awarded grants under the program in this funding round.
The McCreary County Fiscal Court in partnership with the MCIDA plans to use the grant to finish construction on the speculative building currently located in the industrial park. Construction on the building is expected to cost approximately $2,000,000. In addition to the $410,466 KPDI grant, construction will also be financed with $410,466 in TVA RDAAP funds, with the balance being financed with local bank financing. The building will be constructed to meet the needs of a growing local business. Construction is expected to start later this summer.
KPDI was established last year after Governor Beshear and the General Assembly approved $100 million in funding for KPDI during its regular 2022 session. Applications 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. KPDI furthers the efforts of the pilot PDI program, which was established in 2019 and provided nearly $7 million in state funding for 20 sites and building development projects statewide.
Gordon Kidd, Chairman of the MCIDA, stated that the MCIDA board appreciates the KPDI grant, and the investment made in McCreary County, helping to create good paying jobs for McCreary County residents. He thanked Governor Andy Beshear, the Kentucky General Assembly, the Kentucky Cabinet for Economic Development, the Lake Cumberland Area Development District and the McCreary County Fiscal Court and other entities for their roles in helping make the grant a reality. Kidd added that the MCIDA board is excited to finish the speculative building and put it into productive use, creating jobs and creating economic activity in McCreary County and Southern Kentucky.
Potential lease of McCreary’s SPEC building
KY Governor Andy Beshear’s announcement of the $410,466 Kentucky Product Development Initiative (KPDI) grant awarded to McCreary County Industrial Development Authority (MCIDA) will be spent by McCreary County Fiscal Court and MCIDA as partial funding for the completion of construction on the SPEC building currently located in McCreary County’s industrial park. The McCreary County Industrial Park is located in Pine Knot at 217 Meadows Grove Road.
Specifically, the KPDI grant funding will be used by McCreary County IDA and Fiscal Court as a first step towards potentially leasing the SPEC building to Outdoor Venture Corporation (OVC). Completion of the SPEC building will be in accordance with the needs of OVC. If McCreary County IDA is successful in securing a two year lease of the building with OVC, there will then be potential for IDA to sell the building to OVC after the two year lease. According to IDA, completion of the building and successfully leasing to OVC may bring 25 new jobs to McCreary County.
The cost for completion of the SPEC building is estimated at approximately $1,800,000 and will be financed through three primary sources. First, McCreary County IDA has secured a construction line of credit (loan) for $832,000 from United Cumberland Bank to be used for the project. Additional county funds received from the Tennessee Valley Authority (three years of RDAAP funding) in the amount of $410,466 will match the KPDI grant of $410,466 for a total sum of $820,932. The combined total of RDAAP and KPDI funds will complete financing of the project.
A dedication ceremony for the SPEC building occurred in 2006 when initial construction of the building was completed. The building has remained unoccupied since the dedication.
“Judge Greene assigned that to me as my first job when we took office,” McCreary County Deputy Judge/ Economic Director Nathan Nevels said. “I’m very pleased and excited to know we are well on our way to finally accomplishing the goal of getting the SPEC building occupied.”
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