Ethics Reporter: New, expanding companies received $173 million in incentives from state in 2017

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In the recently completed fiscal year, Kentucky state government gave final approval to 334 companies to receive $173.6 million after the companies promised to locate or expand in the state.

In FY 2016-17, the Kentucky Economic Development Finance Authority (KEDFA) approved 49 of those companies to receive over $1 million in incentives, some by direct payment and some by allowing companies to retain tax money they would otherwise be required to pay into the State Treasury.

The fiscal year total is an increase from the $136 million in incentives which were approved for 298 companies in the previous fiscal year.

The largest state incentive packages will go to the following companies in these counties:

Computershare, Inc. (Jefferson County) $13.2 million
Champion Petfoods USA (Logan County) $12 million
Aleris Rolled Products, Inc. (Hancock County) $11 million
Kindred Healthcare Operating, Inc. (Jefferson County) $11 million
Big Ass Solutions (Fayette County) $6.5 million
Amazon Fulfillment Services, Inc. (Boone County) $5.4 million
Thai Summit Kentucky Corp. (Nelson County) $5 million
Constellium-UACJ ABS LLC (Warren County) $4.5 million
Maker’s Mark Distillery (Marion County) $4.25 million
Faurecia Automotive Seating LLC (Shelby County) $3 million.
THG International (Bullitt County) $2.6 million
Braidy Industries (Greenup County) $2.5 million
Diageo Americas Supply, Inc. (Shelby County) $2.5 million
GameStop, Inc. (Bullitt County) $2.5 million
INOAC Group North America LLC (Washington County) $2.5 million
International Crankshaft, Inc. (Scott County) $2.5 million
iwis Engine Systems (Calloway County) $2.5 million
LEDVANCE LLC (Woodford County) $2.5 million
Eby-Brown Co. (Bullitt County) $2.4 million
T.RAD North America (Christian County) $2.3 million
Retail Convergence.com (Bullitt County) $2.25 million
Specialty Foods Group (Daviess County) $2.25 million
Kellogg USA (Pike County) $2 million
Sazerac Distillers (Nelson County) $2 million.

These incentive payments are from the state’s largest economic development programs, such as the Business Investment program (KBI) and the Enterprise Initiative Act (KEIA). The above totals don’t include amounts which will be paid by local governments to benefit the businesses, or payments or tax breaks from other state programs.

For example, Lakeshore Learning Co., which manufactures educational materials, is building a distribution center near Midway. KEDFA gave final approval to Lakeshore to receive $1.4 million from KEIA, preliminary approval to get $3.7 million from KBI, and approval for $1.35 million in Economic Development Bond funds to extend gas lines to the distribution center. KEDFA also approved a 100 percent reduction in the state ad valorem tax rate on Lakeshore’s building and equipment, which will be financed with industrial revenue bonds issued by the City of Midway. That tax reduction will be worth up to $50 million over 30 years.

Registered legislative agents

There are ­­611 legislative agents (lobbyists) registered in Kentucky, and they’re working for 719 employers. By Friday, September 15, 2017, all lobbyists and employers are required to file Updated Registration Statements for the period May 1 through August 31, 2017.  Forms may be filed online, by fax, or via U.S. Mail.  To file online, visit klec.ky.gov and click “file forms online.”

Four businesses or organizations have recently registered to lobby. Those are: Baxter Healthcare Corp.; the Kentucky State University Foundation, Inc.; Mariam Clinics, which has a clinic near Chicago, and states it will be lobbying on issues related to regenerative medicine; and Oldham Reserve Partners, which is developing 1,000 acres in LaGrange for office, commercial, retail, and residential use.

Meanwhile, Braeburn Pharmaceuticals; Cisco Systems, Inc.; Live Nation Entertainment, Inc.; and the Louisville/Jefferson County Metropolitan Sewer District have terminated their lobbying registrations and are no longer lobbying in Kentucky.

From Legislative Ethics Commission

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