By Guest Columnist Andy McDonald
The Berea City Council unanimously adopted a resolution Tuesday, affirming an intergovernmental partnership that could potentially bring over 700 new jobs to the Berea Industrial Park.
The resolution authorizes the city to enter a partnership with the Madison County Fiscal Court, Scott County Fiscal Court, and the Lexington Fayette Urban County Government to form an industrial development authority to purchase land and share profits from subsequent development. The first joint economic development project will be located in Berea.
Berea Mayor Bruce Fraley told officials the initial project will involve approximately 100 acres in the city’s industrial park. The land is currently owned by the Berea Industrial Development Authority (BIDA), but will be sold to a newly formed entity, the Central Kentucky Business Park Authority. Officials said as a result of that transfer, BIDA could realize a return of between $1.7 million and $2 million, in addition to future profits from a percentage of occupational license fees and profit taxes from industries that locate on CKBPA property.
Madison County and Berea would split a 33 percent share of those profits, which for Berea could mean an annual revenue stream of approximately $225,000 once the park is fully occupied. Berea would retain an additional 10 percent of the annual profits because it is the host city, according to the agreement. The total return on investment could then be used to purchase additional industrial land, either in Berea or other CKBPA economic development projects, Fraley has stated.
The initial economic development proposal included the city of Richmond and the city of Georgetown to purchase approximately 500 acres for a business park in Georgetown. Both Richmond and Georgetown backed out of the partnership in October. After consulting with Congressman Andy Barr’s office, however, the remaining four governments forged ahead on an interlocal agreement after learning that $5.5 million in federal community development funds was potentially available for the project. That money, which won’t be officially approved until the passage of next year’s federal budget, would enable the city to resurface land in the industrial park at no cost to Berea or the other participating governments.
In a work session last week, Fraley said the projection of 750 new jobs may be a low estimate, and that when fully occupied, the partnership could bring as many as 1,000 jobs to Berea and Madison County. Officials speculated the industrial property will be sold off in lots of 20 or more acres, and that the companies locating in the park will likely be related to the region’s growing tech industries, including those related to the automotive industry and electric vehicles. The city’s economic development consultant, Lucas Witt of MWM Consulting, said the average hourly wage for the new jobs is projected to be $30 per hour.
Madison County District Four Magistrate Tom Botkin expressed gratitude for the council’s unanimous decision, noting it will have a positive economic impact for decades to come.
“You have to have a vision. It’s not always easy to sit in your seats and think what’s best for our citizens 20 years down the road, 30 years down the road, and you’ve addressed that tonight,” Botkin said.
Several council members thanked Fraley, who spearheaded the effort to keep the intergovernmental partnership alive.
“I want to commend our mayor for having a vision and understanding of what economic development will be in the future,” said Berea City Councilman Steve Caudill. “Thank you for doing this work, because you worked a long time on this. I don’t think people give you enough credit or realize that this would have never happened for us or the rest of the community had it not been for the work that you put in.”
Economic Development Committee Chair Jim Davis said the current deal is actually better for the governments than the one that failed. Under the new agreement, Berea won’t have to put up $500,000 for the initial purchase of property and infrastructure.
“The best part of this is that Berea comes out a winner. We had land that was unusable, but now we have funds to make it usable. This is a great thing for Berea, Madison County, and the other governments as well.”
Council member Teresa Scenters agreed, stating: “It’s morphed into something even better for the city and the region.”
Both Caudill and Cora Jane Wilson thanked Judge Reagan Taylor and the Madison County Fiscal Court for their steadfast support.
“They have been unwavering in this process,” Caudill said. “I’m really excited about the future of this partnership.”
Fraley closed the discussion, saying it took many people to make the effort possible.
“It really shows you how strong this partnership is between the Madison County Fiscal Court, the Scott County Fiscal Court, the Lexington Fayette Urban County Government and the city of Berea. We stuck together on this thing,” Fraley said. “I want to acknowledge the vision of the council, because the council saw that this was something that is good for the city of Berea, good for the citizens. We all represent the city of Berea, but we’re also all Kentuckians, we’re also all Madison Countians, so we see that greater good.”
Fraley also expressed thanks to Business Development Director Donna Angel, City Administrator Rose Beverly, as well as Lucas Witt.
Scott County is slated to vote on the same resolution Wednesday night, followed by a Thursday vote by the Lexington-Fayette Urban County Government.
Resurfacing work in the industrial park could begin by next fall, or by spring of 2026, according to Jordan Haney of Thoroughbred Engineering.
