The City Commission on Tuesday approved selling 20 acres of land at MidAmerica Airpark to Kenergy Corp. so the utility can relocate their Owensboro facility, though Kenergy is in the early stages of the potential move and still has to approve the deal. Commissioners also approved an incentive package that would go into effect if Kenergy does purchase the property.
Kenergy’s Owensboro office is located 311 Fairview Drive. On Tuesday morning Leslie Barr, Communications and Public Relations Specialist for Kenergy, said the company is in the “very beginning phases of exploring the possibility of upgrading” their Owensboro facilities.
“Our current Owensboro facilities on Fairview Drive will not meet our future needs in its current state. Kenergy staff and board of directors are currently determining the best locations that meet our space needs, which will include looking at all incentives and costs before petitioning the proper regulatory bodies to proceed,” she said. “Approval would be needed from various entities before we could move forward.
Barr said the Airpark has better and safer access to roads for their large equipment and allows quicker access to their local service area.
City Manager Nate Pagan said the City had to approve the move because they are partners with Economic Development Properties, Inc. EDP had already approved selling their share of the land prior to Tuesday’s meeting.
According to the municipal order by the City Commission, Kenergy would be purchasing the 20 acres from the city for $40,000 per acre.
The sale would still need to be approved by the Kenergy board of directors at their next regular meeting.
A separate but related municipal order details the incentive package.
It declares the City would provide the following incentives:
- $5,000 per acre for building site acquisition.
- Construction of an extension of Airpark Drive to the proposed Kenergy building site of approximately 1,000 linear feet and an estimated cost of $1,500,000.
- A rebate of 50% of ad valorem real property taxes paid by Kenergy for the Airpark site for a term of 8 years after the incentive period. The 8-year incentive period shall be activated within 36 months of the date of incentive approval.
- A rebate of 50% of the General Fund Occupational Fees on gross employee wages for a period of 8 years upon the relocation of Kenergy to the MidAmerica Airpark.
The agreement states Kenergy would be required to:
- Consent to the future annexation of the real property at its current address of 3111 Fairview Drive prior to its sale or transfer.
- Retain its location in MidAmerica Airpark within the City of Owensboro for a period of at least 25 years.
- Obtain and maintain an active City business license, timely pay all taxes, and other fees, as well as comply with all contractual and financial obligations to the City under the agreement.
