Kenergy Corp. is looking to purchase 20 acres of land for $800,000 from the City of Owensboro to relocate the company’s Owensboro facility to MidAmerica Airpark. The City Commission is expected to vote today on if they approve moving forward with the sale along with an incentive package for Kenergy if they do.
(Editor’s note: This article originally said Kenergy was looking to move their headquarters. However, the language on the proposed municipal orders referenced below was incorrect. Kenergy is considering moving their Owensboro facility, located at 3111 Fairview Drive.)
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.
According to a municipal order on the agenda for today’s City Commission meeting, the City of Owensboro owns an undivided one-third interest in 83.454 acres of vacant real property located in the MidAmerica Airpark, which is jointly owned by Economic Development Properties, Inc.
The document shows the purchase price to be $40,000 per acre for 20 acres of that property.
The document indicates that even if the City authorized the sale, it 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 the City Commissioners could approve if they authorize the sale of the property.
According to that document, the Owensboro facility relocation “will further stimulate local commerce through an investment of up to $20,000,000 and the employment of approximately 82 employees.”
If approved, the municipal order 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.
