RICHMOND—Board members of the city's Industrial Development Corporation heard an update on the potential creation of 300 new jobs if a developer the Corporation is wooing chooses to locate here. The board also contemplated the wisdom of state funded corporate incentives, and delayed plans to vote on its dissolution, all during its regularly scheduled monthly meeting on Monday, Sept. 15.

Richmond is one of several potential locations across several states being considered by a company with plans to build a $170 million, 500,000 square foot project. If the City wins, the new employer will locate its facility in the Richmond Industrial Park South III site, off Bill Robertson Way.

A decision from the company is expected by late October or early November, according to Board Chair John McPherson, who stressed that the mystery developer is "not a data center."

The specifics of the project and name of the developer cannot be made public yet, McPherson told The Edge in an interview following the meeting. “We signed confidentiality agreements with the state because there’s state incentives involved,” he said.

Meanwhile, during the meeting, McPherson opined about online criticism thrown at Kentucky's corporate tax incentives program by Conservative influencer, Andrew Cooperrider.

“When a special group doesn’t pay the same rate as everyone else, that burden gets pushed onto the rest of us,” Cooperrider wrote on Facebook. “I believe government already takes too much. Everyone should pay less–not just a select few chosen companies.” 

Cooperrider name checked the Richmond-based manufacturer, Lectrodryer, LLC, where McPherson, now retired, previously served as CEO.

Tax incentives are predicated on job creation, according to McPherson who said that businesses are still required to invest their own money up front.

“We just pay less taxes in the long run, and the amount of taxes are still very substantial, rest assured. But our payroll tax gets reduced for a period of time,” McPherson said. 

New York would have given Lectrodryer $5 million in tax incentives, and one country even offered a free tax plan for the company, according to McPherson. By comparison, Kentucky gave the company, one of the world's largest liquid dryer manufacturers, $800,000 in tax relief, McPherson said.

“That’s the kind of competition that we face on a regular basis,” McPherson said. So keeping good, high paying jobs here is very, very important.” 

Creating high paying jobs locally so that residents do not have to commute out of the county to work is his priority, McPherson said in the interview.

In other business, construction is underway for the new Kentucky State Police Post 7 in its new site off Duncannon Lane. Earthwork on the site has started and the Post is expected to add 20 to 30 jobs once it is completed, Economic Development Director Brad Sowden said.

An assignment authorizing MP Kelly Design & Construction to purchase a build-ready site at 3000 Bill Robertson Way passed unanimously in a voice vote. Board Members Jeff Steele, Robbie Robertson, Kiki Creech, and Brad Thomas were not present. Board Member Jack Kelly abstained from voting as he is a project manager with MP Kelly Design & Construction. MP Kelly will purchase the land through a separate LLC. There was no word on what the new project will entail. 

“The assignment is purely to have an entity buy the land. I never intended to buy through our construction company, it's not what a construction company does,” Kelly said. 

City of Richmond Finance Director Sharon Cain presented the RIDC financial statements for the end of August. There was $147,357.90 in the operating account, $58,772.39 in the miscellaneous account, $86,192.80 in the program fund account, and income was $2,000. 

Lastly, there was not a quorum, so a special meeting will be called to dissolve the RIDC and fold its functions into the City’s Department of Economic Development. The move is expected to reduce inefficiencies, City Manager Rob Minerich said during a Commission Workshop meeting in July. 

The RIDC is registered as a non-profit, non-stock corporation established in 1995 under the Kentucky Nonprofit Corporation Act. Most of the RIDC’s funding comes from the state and city. The Richmond Recycling Center pays $2,000 to rent one of the buildings that RIDC owns.