EDA to develop strategy for marketing commercial land at interchange; City Council to take up greenspace deal

Zoning map adapted by Midway Messenger shows most of Midway Station; for a larger version, click on it.

With all the industrial-zoned land in Midway Station under some sort of formal process leading to sales, the Woodford County Economic Development Authority will be focusing on how to market the commercially zoned land along Georgetown Road and Interstate 64.

The "sticker price" for the tracts zoned B-5, highway interchange service, is $2 million, so it's "a big deal," EDA Chair Michael Michalisin said. "That's our next real item we need to address . . . how to make that more salable." Sales are needed to retire the debt on the property.

Michalisin said board member Paul Schieffler had suggested that EDA needs to develop a marketing strategy for the property, and would "take a leadership role moving forward" on the topic.

Midway Mayor Grayson Vandegrift said the City Council would discuss on Sept. 8 acceptance of a deed from EDA giving it 38 acres, more or less, along I-64. The land, which is not platted for development, has been intended to remain a greenspace buffer.

Vandegrift reported that county Planning Director Pattie Wilson recently found 1991 City Council minutes that say the city was supposed to get "a scenic and conservation easement around the perimeter of the property prohibiting construction within 150 feet of I-64," plus additional easements to total 39 acres.

The mayor and EDA have agreed that the city would get ownership of the property in return for forgiving $500,000 to $750,000 of the debt owed to it by the EDA, most of which is for the natural-gas line built to serve Lakeshore Learning Materials, but not all of which is considered collectible. Vandegrift said he intends to ask the council to vote on the deal Sept. 21.

Wilson reported that Creech Inc. has filed a revised development plan for the lot it is planning to buy for a horse-muck processing facility, in time for the Planning Commission meeting at 6:30 p.m. Sept. 10, and will submit site construction plans Sept. 8. Tom Creech told the board, "I'm ready to go."

Lucas Witt, EDA's new acting executive director, said he met with Barnhill Chimney, which has optioned 2.49 acres for a facility to manufacture chimney caps but has been off and on about going through with it. Witt said the company "fully intends to exercise the option," but hasn't said when. Michalsin said the company has been making its option payments and would bring "a fair amount of jobs . . . I think it's in the dozens." Barnhill has been quoted as saying that it plans to have seven to 10 employees at opening, 10 to 15 in a year and could have 30 in five years.

In the public comment period, Vandegrift said making the transition from former Chair John Soper, who had also been executive director, was "a tough task" but "everybody really did a good job pulling together." He added, "This was a time we couldn't lose steam, and we haven't. I'm as optimistic as ever about Midway Station's outcome."

Property valuations rise 14.4% as payroll-tax revenue is steady, so mayor proposes cutting property-tax rates

UPDATE, Monday, Aug. 24: The council heard first reading of the ordinance.

Property valuations in Midway are up substantially, and Mayor Grayson Vandegrift is recommending that the City Council reduce tax rates so the city will get about the same amount of tax revenue and property owners will collectively pay about the same amount of taxes.

Vandegrift has called a special council meeting for Monday to give first reading to the tax ordinance so the council can give it second reading and enact it at the regular meeting Sept. 8, "to get our tax preparations out on time," he told the council in an email. "The state was behind in sending the compensating rates."

Each year, the Revenue Cabinet looks at assessments made by property valuation administrators and calculates for each taxing authority a compensating rate, one that would give it about the same amount of property-tax revenue as the current year, which Vandegrift has proposed. (It also calculates what rate would raise revenue by 4 percent, the most that a taxing authority can get without being subject to a petition for a referendum on the rate.)

The valuation of real estate in Midway went up 14.7%, to $135 million, from $117.7 million. Personal-property valuations were $5.35 million, up from $5 million. The total valuation rose 14.4%.

Vandegrift was aware of the increases in July, when he named Council Member Logan Nance, Fiscal Court Magistrate Liles Taylor of Midway and Midway Business Association President Cortney Neikirk to a committee to study the possibility of tax rebates due to rising valuations.

He said then that valuations are rising because housing demand exceeds supply, and valuations in the city weren't closely scrutinized for four years before its housing market "really took off." He said Property Valuation Administrator Judy Bobbitt told him she divides the county into quadrants that are reviewed every four years and assessed at fair market value, mainly on comparable sales in the area.

The mayor also said in July that rates could be reduced, “but we’ve already cut them 30% and I don't want to hamstring ourselves or future leaders from being able to raise them if the revenue is needed."

His thinking has changed. He has proposed compensating rates of 6.2 cents per $100 on real property, down from 7 cents, and 6.4 cents on personal property, down from 7.5 cents.

He said in his email that there is an argument that cities shouldn't cut property-tax rates because "you can never get that revenue back," but he said that does not applies to cities like Midway, which rely mainly on occupational taxes on wages and net profits.

He said City Clerk-Treasurer Cindy Foster told him that occupational-tax income in the second quarter was virtually the same as in 2019, though "we expected to take our worst hit due to the pandemic."

Vandegrift said the coronavirus will continue to be unpredictable, but "Our numbers and the new businesses we're bringing in, along with the construction crews building new facilities, gives me great confidence that we will exceed our revenue projections for this fiscal year. Other revenues are holding steady as well, but occupational tax butters our bread."

He added, "I believe these rate cuts are appropriate since individual families and businesses are struggling. Anything we can do to ease their tax burden, not add to it, seems prudent and necessary."

He said his proposal amounts to a 12% tax cut on real estate and a 15% cut on personal property, "but as you can see from the calculations, it will overall still generate the same amount of revenue for the city."

The meeting will be held via Zoom at 5 p.m. and will be on the Facebook page Midway Streaming Government Meetings.

Council accepts mayor's plan to use surplus to finish sewer repairs by replacing main line to treatment plant

Green lines show sewers that are part of the video-and-cleanout project.

By Heston Bates, Taylor Beavers, Jordan Brown and Gage O'Dell

University of Kentucky School of Journalism and Media

The Midway City Council went along Monday with Mayor Grayson Vandegrift’s plan to finish repairs to the sewer system though the cost is expected to exceed their original estimate.

Vandegrift noted that the original budget of $200,000 for a project to video and clean out sewers on the east side of town was cut back to $150,000 due to COVID-19’s expected effect on occupational-tax revenue, but he said the revenue picture is better now.

When the pipes were cleaned out, they were in better condition in many areas than was previously thought and since then there have not been any spills, but the main line near the plant has “entire gaps of sewer missing” and is causing backups upstream, he said.

Vandegrift said it is likely that the cost will be closer to the original budget. “I don’t think we can blink at this,” he said. “The project is too big not to move forward with.”

The council agreed. Council Member Logan Nance, often a fiscal conservative, agreed with Vandegrift. “That’s what surpluses are for, to help with projects like this,” he said. “This is only going to make things better down the road.”

Some other council members said likewise, so the project will be advertised for bids and the council may pick a bidder Sept. 8.

The mayor hired Buchanan Contracting to video and clean out the sewer system. He said sewage overflows from manholes during heavy rains have stopped, but the condition of the main line causes blockages upstream.

“This will be the city’s biggest public works project in over 50 years,” Vandegrift said. He estimated that the work will begin in late fall or early winter, depending on approval by the state Division of Water.

University students return: Addressing possible concerns about the influx of Midway University students for the start of the fall semester, Vandegrift went over the school’s plans and voiced confidence in them. “If a university can pull this off, it’s going to be Midway,” he said.

He said capacities in classes are limited and students are required to complete a negative coronavirus screening within one week of returning. He said students cannot be confined to campus because many have jobs, but if tested positive, a dorm is available for quarantine if the student is not able to leave campus.

“We are going to continue to communicate with them whether there’s cases or not, as it certainly is an issue that can affect public health,” said Vandegrift. He noted that Midway only has two of the reported 187 coronavirus cases in Woodford County, but expressed concern because most of the recent cases have been people younger than 40.

Vandegrift said  contact tracing will be the key to preventing covid-19 not only on campus but in the community. He praised the university’s quick response to the virus in the spring, saying the closure of the campus helped it better prepare for this semester.

Rentch property is labeled "private property" on map.

A piece of the park: The mayor told the council that Helen Rentch is willing to donate the part of her property that is being used as part of Walter Bradley Park back to the city, if they can agree that her part will not be developed and if the city ever abandons it, it will revert to Rentch or her estate.

Council Member John Holloway, the unpaid park manager, said “virtually all of that property” is in the floodway of Lee Branch, meaning it can’t be developed.  “Helen has been just extremely gracious to let us use her property the way that we have been,” he said.

In its only official action of the meeting, the council approved a permit for the “Turn the Town Purple” parade scheduled for 11 a.m. Sept. 10 by The Homeplace at Midway to raise awareness for Alzheimer’s disease. Representatives from The Homeplace at Midway will be driving through town with purple-adorned vehicles, purple being the signature color of the Alzheimers’ Association.

The event will not seek public participation due to the pandemic. The caravan will start at the Homeplace, go down Stephens Street to Winter Street, turning around at Main Street to head back to the Homeplace.

In the roundtable at the end of the meeting, Council Member Stacy Thurman asked Vandegrift about the progress of the city's new Code Enforcement Board. The mayor said the board, three members and an alternate, has been meeting via Zoom (as the council does) to develop a list of abandoned properties for the council's consideration after Jan. 1. Property that the council declares abandoned can be taxed at about 10 times the normal real-estate tax rate.

Vandegrift said he is still having difficulty hiring a code enforcement officer, partly because of the pandemic. He said the task is "a little bit more challenging than it was six months ago," when the board was appointed. Jim Starks, whom the council appointed to a three-year term, is the board chair.

EDA board lines up sales of four large Midway Station lots that are supposed to produce 70 new jobs

Lots 24, 25, 26 and 27 were prepared for sale by EDA at its meeting Tuesday. (For a larger image, click on it.)

Seventy more jobs would come to Midway Station under instruments approved Tuesday by the board of the Woodford County Economic Development Authority. 

The EDA board approved a letter of intent to sell two lots to CSI, which makes auto parts robotics for the auto industry, and a purchase contract for two with Dever Inc., which sells and rents golf-cart fleets.

"CSI is a hi-tech manufacturer for the automobile industry which will bring 40 high-paying jobs and will take Lots 24 and 25," Mayor Grayson Vandegrift said in an email to the City Council after the meeting. He said Dever will buy Lots 26 and 27 and "bring roughly 30 more jobs to town."

EDA Chair Michael Michalisin of Midway said the sales, after real-estate commissions, would generate $845,000, about $688,000 of which would go toward reducing the mortgage on the industrial and commercial park, with EDA keeping the remaining $157,000.

Vandegrift said the sales would reduce the debt on the property by about a third. "This is a big day for a number of reasons," he wrote. "This marks the beginning of a shift to a new phase, as these are the last remaining industrial lots in Midway Station not currently under contract."

Lot 30 is under option with Barnhill Chimney, and Lots 29 and 31 are in the process of being sold to Creech Inc., which collects muck from horse farms and ships it to mushroom farms in Tennessee.

Vandegrift noted that 130 acres of north of Midway Station is zoned industrial, "but this is a very nice turning point for the history of our industrial park. Both of these new companies are relocating from Lexington, and while they are not done deals just yet, they’re moving along very quickly and I am confident they will both get across the finish line. We could all use good news right now, and I’m very excited about both of these new companies."

EDA sells two Midway Station lots to Creech Services, which bales and ships muck from horse stalls

By Aaron Gershon
University of Kentucky School of Journalism and Media

The Woodford County Economic Development Authority voted unanimously Tuesday to approve a purchase contract for two lots in Midway Station to Creech Services Inc., a firm that firm that bales and ships horse-stall muck.

“This entity serves the community,” EDA chair Michael Michalisin of Midway said during the brief special meeting. “This is a business that’s served our horse farms that are near and dear to our heart, part of our heritage and what Mr. Creech does is provide a very professional, world-class service.”

At the regular EDA meeting Friday, Midway Mayor Grayson Vandegrift endorsed the sale. In May, he and the board were hesitant about making a deal with Creech, since composting is prohibited in Midway Station, but then Creech showed them that composting isn’t what he does.

On July 15, Vandegrift and Michalisin told the Messenger that after meeting with Creech at his Fayette County facility that they were willing to sell two lots that Creech would use exclusively as a transfer point for horse muck that is shipped to mushroom farms.

Vandegrift said Tuesday that some Midway residents had voiced concern about odors, but the only smell they noticed was the smell of a horse farm, and “Smelling is believing.”

He noted that prevailing winds run southwest to northeast, which would take any odor into farmland, but he said there would be no problem even if the wind blew from the northeast into Midway.

Vandegrift told the EDA board that he shared the potential deal with the Messenger in order to get feedback from the public, and heard back from three Midway residents.

“They were concerned and wanted to see what this was,” Vandegrift said Friday. He said Creech invited all three to his facility, and “One of them did join him this Monday, is my understanding. I did not hear back, but I figure no news is good news.”

Michalisin added, “I support Mr. Creech and admire what he built out there (Fayette County) and I just love the fact he wants to be here, be part of Woodford County, wants to be close to our horse farms and wants to bring jobs here.”

At Tuesday’s meeting, former Midway mayor Tom Bozarth, a bloodstock agent, spoke highly of Creech, saying he had known him for 30 years. "He just runs a real class operation, so I can't say enough about him and his integrity," Bozarth said.

During Friday’s meeting the board also:

• Authorized signing of closing documents to sell the balance of the Roach property to Big Dog Trading and Storage Barrel Warehouse Co. The property is next to thenAmerican Howa Kentucky auto-parts plant.
• Allocated the expected profit of $65,000 from Big Dog’s purchase to the Roach family to satisfy debt owed the family.
• Welcomed a new board member, Anna Beth Bobbitt of Versailles. She spent six years as a senior project manager for the EDA and is a client relationship manager at Traditional Bank in Frankfort. “I'm looking forward to contributing any way I can,” she said.
• Heard that a committee led by board member Courtney Roberts continues to work to find a replacement for former chairman John Soper as EDA’s paid staffer. Roberts said he is working with Vandegrift, Versailles Mayor Brian Traugott and Woodford County Judge-Executive James Kay.

Mayor, EDA chair check out firm that bales horse-stall muck and decide to welcome it to Midway Station

By Aaron Gershon

University of Kentucky School of Journalism and Media

Midway Mayor Grayson Vandegrift and Woodford County Economic Development Authority Chair Michael Michalisin of Midway are ready to sell Midway Station lots to a company that bales muck from horse stalls and ships it to Tennessee mushroom farms.

Vandegrift told the Messenger that he and Michalisin met last week with Tom Creech of Creech Services Inc. at his Fayette County facility, and “We agreed that what Mr. Creech wants to bring to Midway Station is not composting and is in actuality simply a transfer point. He takes muck and straw from horse farms, Lane's End being one of them, and bales it via a processor, and then ships it off.”

Composting of animal waste has been prohibited at Midway Station since Bluegrass Stockyards tried to relocate there in 2007, prompting objections and a lawsuit.

In May, then-EDA Chair John Soper that a sale of Midway Station property to Creech would require a petition for a declaratory judgment to determine "if it could exist under a settlement of the lawsuit regarding the stockyards.”

Vandegrift said Wednesday night that he doesn't see that as necessary since Creech is not planning to do any composting in Midway.

“I think that would only come into play if someone were to challenge the sale in court, based on the deed restrictions,” he said. “Obviously, anyone can sue for anything at any time, but after looking at the operation Creech wants to bring to Midway, I'd be surprised if that happened.”

One of Vandegrift's original concerns about the purchase was the potential for odors wafting across Interstate 64 to residential areas, a major concern 13 years ago. “We don't want to stir up the ghosts of the past,” he said in May. Now that he has a clear understanding of Creech’s operations, he says there would be no odor.

Creech said in May that he would like to have a baling facility in Woodford County because he serves so many farms in the county.

Vandegrift said, “Michael and I have both agreed this is a good agricultural business that supports the horse industry and does not produce any discernible odor except for when right up in the building.”

He said the facility would likely add 10 or possibly more jobs to the city.

Vandegrift said he and Michalisin have asked EDA attorney Bill Moore to draw up a purchase contract. It could be approved at the EDA’s next meeting on July 24.

“Once they are approved, the lots sold will be under option for about 90 days,” Vandegrift said. “That allows the buyer to do some due diligence like geotechnical to see what they'll be digging into.”

Mayor announces distillery, RV resort park planned for Mitchell farm at northwest corner of I-64 interchange

City limits in pink; urban service boundary is line above “Proj A.”

UPDATE, July 15: The conditional-use permit process for the RV resort is not expected to begin until September, and will start with the Agricultural Advisory Review Committee, Planning Director Pattie Wilson told the Messenger.

Midway Mayor Grayson Vandegrift sent this in an email to the City Council and news media today.

By Grayson Vandegrift

     I’d like to give you an overview of two new projects that are currently under option on the “Mitchell Farm,” also known as Elkwood, on the western side of 341, across from Midway Station. As you know, industrial and agricultural land has been for sale for quite a long time.

     All of this is preliminary, and by no means are they final, but there are two projects scheduled to close on land purchases in October. For now we’ll call them “Project A” and “Project B.”
     Project A is a small, local distillery that wishes to relocate from Lexington. Their facility would be built near our wastewater facility, within the Urban Service Boundary, but currently just outside the city limits. It is on industrial land and requires no rezoning (see picture).
     Project B would be, in short, called an RV resort, but it could offer much more to the citizens of Midway (see below). After speaking with the brokers involved in the investment, I was assured the RV campsites would be far from KY 341 and out of view. The resort would feature a horseback riding equine pasture on the front end, facing 341. On the rest of the land, which straddles parts of northern Woodford and southern Scott counties, they plan to offer a swimming pool, a swimming pond, a fishing pond, a lazy river, access to Elkhorn Creek, and much more which you can see from the preliminary sketch of the resort.
     While this is an RV campground that would certainly boost tourism for downtown Midway, I was pleased to learn it will also be open for the public to purchases passes for usage. It is on agricultural land and does not need to be rezoned, but the Board of Adjustments of Planning and Zoning will need to grant a conditional use permit. Current zoning laws do permit this type of use on agricultural land so long as that permit is issued. The investors are scheduled to go before the Board of Adjustments on Wednesday.
     Both Projects A and B wish to be on city water and sewer, which we have the capacity for, and which would help us keep our rates in check, if not help us lower them more in the future. This would require us to annex these lands into the city, effectively bringing the city limits to the Scott County line on the western side of 341.

     Project A has been trying to get its distillery moved to Midway for two years, and Project B is likewise struck by our charm, quaintness, and vibrancy. Both would bring jobs and tourism to town. I do not have a total job count for either project at this time.
     Project B will be presenting to the council in an upcoming meeting, and Project A will likely do the same once they get a few more things in place.
     As always, I want you to be able to see this, chew on this, and ask questions. Neither is a sure thing, and public input will be extremely valuable and will be heard going forward. Both projects fit our modus operandi of developing north of Leestown Road around the interstate, and neither requires rezoning. If you have any questions just let me know, you’ll have plenty of time for more questions as the process moves forward.
     I think it’s important to note: The land owners are eager to sell, and the buyers eager to develop. Regardless of how anyone may feel about any of this, if it’s going to happen, I want to bring it in to the city so we can benefit from the tax revenue and the relative distance from our residential centers and the separation provided by a highway and an interstate.

Here's the developer's description of the land use plan:

The Bluegrass RV Resort is nestled in the heart of Central Kentucky along I-64 on the northern edge of Midway, a quaint city with great restaurants, friendly charm and historic equestrian and bourbon industries. Guests will enter the property with views of the entry pond and equestrian pasture beyond. After a peaceful scenic drive, guests will arrive at the clubhouse, where they can relax and receive guided access to their site when ready. This property is home to a luxury RV club resort, family RV campsites and short-term cottage rentals. RV sites provide opportunities for both family sites and adult sites. Amenities include a clubhouse with bourbon tasting and educational tours; the tables with horse riding and a horse rescue; aquatic park with a lazy river, slides, splash pad, and pond swimming; amphitheater; country store; kayak and tub rental; and an adult recreational center with a pool and swim-up bar, fire-pit, and hammock retreat.

City won't be reimbursed for vouchers, so mayor says council should consider an even bigger grant plan

The vouchers must be spent at local businesses by Tuesday, June 30.

By Aaron Gershon and Al Cross
University of Kentucky School of Journalism and Media

State officials won't reimburse the city the $40,000 in coronavirus relief money it sent residents to spend at local, non-franchised businesses, further opening the way for direct grants to the businesses, Mayor Grayson Vandegrift told the City Council and the news media Sunday.

"While this does not put us out any for the first round of vouchers, since it was funded by our economic-development surplus, it clearly could reshape your thinking on the second round," the mayor said in an email. (The city did not have to make a $40,000 interest payment this fiscal year on the Midway Station industrial and commercial park, thanks to lot sales there.)

"While I think this decision . . . does not account for the fact that a voucher program can help create new long-term clientele in our own city," Vandegrift wrote, "it does open the door wider for a small-business grant program, where we could conceivably use up to $80,000 to boost our local small businesses."

Vandegrift had suggested a grant program to reach more businesses, but the council informally voted 3-2 this month to use federal relief money to do two more rounds of vouchers. When retailers said they needed grants or many of them would go out of business, the mayor said he would propose grants in place of a third round and named a committee to work out details.

The committee (Council Members Stacy Thurman and John Holloway and City Clerk-Treasurer Cindy Foster) is scheduled to meet online at 5:15 p.m. Monday. Vandegrift said its plan and the options would be discussed at the July 6 council meeting.

To help the council decide, he pressed for an answer on reimbursement from the state Department for Local Government and the office of Senate Majority Leader Mitch McConnell, who sponsored the $2 trillion Coronavirus Relief, Aid and Economic Security Act.

"Despite the fact that the language in the CARES Act and the spirit of the law clearly indicate such a program should be eligible," the mayor wrote, "DLG decided after a brief review that it was not eligible." Vandegrift, who earlier said he was 75 percent sure of reimbursement, said he has asked the DLG for an explanation and is waiting for it.

He said DLG's Jennifer Peters wrote, "We appreciate your innovative thinking and applaud your efforts; however, after discussion with the review group, this has been deemed ineligible for reimbursement." McConnell's staff said he favored reimbursement, the mayor wrote, but "They have informed me that the state is the ultimate arbiter of the federal money."

Vandegrift told the council, "I am sorry that I couldn’t present you with the most reliable information sooner than now, but we all know we have to act fast when people are struggling and businesses are threatened. I do hope that if the U.S. Congress decides to add $2 billion more to our staggering national debt, that they hammer out a few details better and create an appeals process that allows imagination to enter the fold."

The John Soper era ends at EDA and Midway Station; mayor calls the last six years 'an incredible turnaround'

Economic Development Authority Chair John Soper discussed
Midway Station at a Midway City Council meeting in October.

By Al Cross
University of Kentucky School of Journalism and Media

The long, down-and-up story of Midway Station entered another chapter Friday as John Soper stepped down as chair of the Woodford County Economic Development Authority and was succeeded by Michael Michalsin of Midway.

Soper, a former banker, has overseen the revitalization of EDA's industrial and commercial park and led the agency into development of an adjacent area, both of which have turned it from the city's main liability into its key source of revenue.

"When I became mayor, Midway Station was pretty much empty," and the city and the county owed more than $5 million on it, Mayor Grayson Vandegrift told the EDA board in its online meeting. "There was a lot of talk that Midway Station just needed to be sold at the courthouse steps," in foreclosure, which would have been "a disaster."

"Instead, through John's leadership" and the rest of the board, the park has reduced the debt to $2 million, gained seven clients and 10 projects with more than 500 jobs, including the city's largest employer (Lakeshore Learning Materials, which is adding a second building and 100 more jobs) and The Journey, a church that will have a day-care center, which is "a huge get for us," Vandegrift said.

The city's occupational tax on wages and net profits has allowed the city to cut property taxes over 30 percent and reduce sewer rates 25 percent, the mayor noted. And the sale of lots in the park saved the city a $40,000 interest payment this year.

"When John took over as chair, they couldn't pay a bill," Vandegrift said. "And now they're telling us we don't have to pay some of our bills ... because they're paying them for us, like the interest payment on Midway Station. It's an incredible turnaround."

The mayor said he was glad Michalsin is willing to be chair, and told Soper, "I think your legacy will be carried on."

Michalsin said he was willing to take the job on an interim basis, since the board's mission may evolve as it and the three governmental bodies decide how to move on from a paid chairman.

Arranging that role in late 2016 prompted a brief clash between Soper and Vandegrift at a City Council meeting, but the relationship between the pro-development Soper and Vandegrift, who has a large preservationist constituency, evolved into a partnership that worked.

Soper said Vandegrift played a key role in making Midway Station a success by agreeing to borrow $450,000 for a larger natural-gas line to serve the property. He called that "one of the greatest decisions that's ever been made in Woodford County" because it ensured that Lakeshore would come. "That deal was going to evaporate that day if you did not make that decision."

Soper said he is proudest that "We never lost a big deal." He took one last opportunity to promote the Edgewood development in Versailles, which is tied up in court, but after Vandegrift complimented him, Soper said, "We don't have to look like Georgetown; we don't have to look like Jessamine County, and I've never wanted us to do that."

Among the actions the board also took Friday were approval of a deed giving the city ownership of the lot where its only functioning water tower stands, and a deal in which the city will gain control of 38 acres along Interstate 64 to serve as greenspace, "which I think will help us control what the industrial park looks like," Vandegrift said.

The city would get the property in return for forgiving $500,000 to $750,000 of debt owed to it by the EDA, most of which is for the gas line but not all of which is considered collectible. Soper said the city would take over mowing the property next year.

Future development: Renewed interest in property at Midway Station could force the board and the city to decide to allow a larger development than would be allowed under the current property plat and street system.

Kyle Johnson of Lexington, one of the EDA's real-estate agents, said one prospect is looking for 30 to 40 acres for a 100-employee distribution facility, which would require "dealing with roads" and lots that are now zoned for retail business.

"We don't turn any deals down until they don't make sense," Johnson said. "Something big like that, we definitely would want to bring Grayson in." Other prospects include one that is interested in 10 acres but would add only 10 to 15 jobs, and a meatpacking operation that is "probably a longshot."

The Messenger asked the agents about Creech Services, which bales horse-stall muck and ships it out of state. The Lexington firm is looking for a location closer to horse farms but wants assurances that it would be allowed in Midway Station under an anti-composting restriction placed on the property after Bluegrass Stockyards tried to relocate there 13 years ago. Senior real-estate agent Matt Stone said Creech was trying to work out a deal with Keeneland.

Planning and Zoning Director Pattie Wilson reported that White Dog Trading, which is building bourbon warehouses and an office building in Midway Station, will have a permanent pool of water in its necessarily large drainage-detention basin. "It'going to be an amenity," she said. Soper said the firm's office building "will be a compliment to Midway Station," and its four warehouses will produce much revenue, mainly for schools, from taxes on the aging whiskey.

Soper also complimented Wilson and her staff, saying "You guys move at the speed of business . . . You treat everybody fairly who comes into that office . . .Your all's agenda is just good planning."

City in line for pandemic relief funds; mayor proposes giving up to 40 businesses $2,000 each for shortfalls

By Aaron Gershon
University of Kentucky School of Journalism and Media

The city of Midway can get more than $129,000 in for expenses related to the covid-19 pandemic, and Mayor Grayson Vandegrift has proposed funneling the money to small businesses.

The mayor said in an email to city council members Thursday that he plans to apply for over $49,000 to reimburse the city for the $40,000 it spent on the “Midway Bucks” voucher program and $9,000 for expenses such as hand sanitizer,  protective spray in city vehicles, masks and food programs.

Vandegrift said he will apply for $80,000 to “grant 40 businesses in Midway with $2.000 to help make up for the revenue they lost due to being forced to close or partially close. While I feel it is unlikely that more than 40 would apply, should that happen, I propose we award grants first to businesses that were forced to close their doors completely.”

He said that would be “clearly reimbursable,” more so than the voucher program, which “is not specifically spelled out” in the Coronavirus Aid, Relief and Economic Security Act, which appropriated the money. “I am very confident the voucher program will be reimbursed . . . because frankly, it’s that cutting edge,” Vandegrift write. “In reading a summary of the act, I do feel that it falls under the eligibility requirements.”

The mayor said the grant application process would be simple and “would likely verify that the business applying are in good standing with the city on taxes and plan to stay open.”

He said he would ask applicants to say how much revenue they normally make in April and May, “though we would not ask them to open their books to us,” and probably require each to report by year’s end how they used the money: “payroll, rent, supplies, debt, etc.”

Vandegrift said the grants “would give a much needed shot in the arm all at once for all Midway businesses, and help them stay open and contribute to our tax base and culture.”

When Council Member Sara Hicks asked if businesses in Midway Station would be eligible, Vandegrift said the grants would be available only to businesses with 50 or fewer employees.

Council Member John Holloway endorsed the idea in an email, with a caveat: “I like the idea that they can apply for funds in proportion to how much loss they've actually had rather than giving everyone the same amount, but only if we can determine a way to do that without causing infighting over the amounts.  Not everyone has been impacted in the same way, or to the same degree. Things are generally more complex than they first appear.”

Vandegrift said the council will discuss the plan at its meeting June 15.

Council passes resolution saying it will confront racial issues in city; deadline to file for council is 4 p.m. Tues.

By Aaron Gershon and Al Cross
University of Kentucky School of Journalism and Media

The Midway City Council committed itself Monday to confronting racial issues and “taking an equitable approach to all decision-making” amid the nationwide protests of police brutality and racial injustice.

The all-white council unanimously passed a resolution saying the city will examine “the racial biases embedded in our city” and “the racial impacts of city polices,” encourage people of color to participate in government and try to “improve the quality of life for all residents of Midway by asking these questions: Who benefits? Who is burdened? Who is missing? How do we know?”

The resolution’s author, Council Member Stacy Thurman, said “I felt it was good to acknowledge what’s going on in the world right now and know that Midway can always do better . . . and maybe lead to a list of action items.”

Mayor Grayson Vandegrift said he had already begun the process by reaching out to African American pastors. Noting the annual observance of the Rev. Martin Luther King’s birthday, he said he had long asked “how we have a discussion beyond a day in January every year … It’s almost like the country doesn’t have the appetite to tackle this problem,” which he said began when the Constitution included compromises on slavery.

“The founding fathers were well aware of the hypocrisy,” he said. “They created a great country with a terrible flaw to it.” He said solving it “starts with the heart, and it starts in the home, and it branches out from there.”

Council Member John Holloway, who first asked how the resolution would be implemented, shared a personal story to illustrate the racial divide that needs bridging.

He said one of his neighbors, an African American, reportedly said “one of the most awful things I ever heard” before the last election: that he was not going to vote “because voting’s for white people.”

“I was just crushed when I heard that,” Holloway said. “I’m not sure the relationship between the races in Midway is as rosy as what white people think it is.” Vandegrift agreed. “It’s not enough to say you’re doing better than other cities. That’s a pretty low bar.”

Council Member Logan Nance said the resolution was “a great first step,” but “We need to make sure people in the community that are minorities feel they do have a voice and that they can be part of this. . . . We can use this resolution as a reminder for ourselves when doing projects to make sure everyone has an equal voice.”

Nance said he has encouraged African Americans to run for office. The last black city council member was Aaron Hamilton, who did not seek re-election in 2014.

Holloway expanded the electoral encouragement to Latinos, saying he would vote for candidates of color and would even pay the $50 filing fee for any in Midway wanting to run for council. The deadline to file is 4 p.m. Tuesday, at the county clerk’s office in Versailles.

(Holloway and Council Members Kaye Nita Gallagher and Bruce Southworth had not filed for re-election as of 4 p.m. Monday, but Southworth and Gallagher said Tuesday morning that they plan to file; the other three members had. Other filers were Adam Bailey of Old Towne Walk and former council members John McDaniel and Steve Simoff.)

The resolution says “The City of Midway seeks to unify efforts aimed at reducing disparities and commit to intentionally and collectively advancing equity,” and “is committed to hearing individuals who meaningfully engage in raising awareness of disparities and in actively engaging in suggesting and supporting methods by which they may be resolved.”

Council Member Sara Hicks alluded to the shortage of affordable housing in Midway, saying “If we have the intention not to be a gentrified community, we can make policies as a city that will provide those things.”

In other action, the council approved an encroachment permit for an eight-foot-wide concrete driveway behind 230 South Gratz St., the former Midway Woman’s Club building, leading to Stephens Street; and reappointed Michael Michalsin to the Woodford County Economic Development Authority board for a three-year term. 

“He understands all sides of our goals of growth, to grow reasonably sustainably, slowly but to also fit into what makes us who we are,” Vandegrift said.

Michalsin said, “I am keenly aware that I am the only that I am the only Midway appointee to that board. I really do try to think about that and represent what’s important to us.” The EDA controls the Midway Station commercial and industrial development.

Firm that bales horse-stall muck has an eye on Midway Station, but is discouraged by prospect of court action

By Al Cross and Aaron Gershon
University of Kentucky School of Journalism and Media

A Lexington firm that services horse farms says it may want to put a facility in Midway Station that would bale the muck it takes from stalls and ship it on flatbed trucks to Tennessee mushroom farms.

The prospect of Creech Services Inc. offering to buy five to six acres in the industrial park raised the possibility of a court action to determine whether the facility would be allowed under a restriction placed on the property after Bluegrass Stockyards tried to relocate there 13 years ago.

The restriction by the Woodford County Economic Development Authority, which was part of the settlement of a lawsuit over the stockyards plan, bans "the composting of animal waste." Creech says that it would not compost the material, and that it contains only 1 percent manure.

However, EDA Chair John Soper said at the authority's May 22 meeting that sale of Midway Station property for such a facility would require a petition for a declaratory judgment "to determine if it could exist under settlement of the lawsuit regarding the stockyards."

Soper, some board members and Mayor Grayson Vandegrift spoke about the matter in past tense, as if it had been decided, but Soper said in an email after the meeting that no decision had been made.

He said EDA attorney Bill Moore had advised that a sale would require a declaratory-judgment lawsuit, in which a judge determines the rights of the parties involved. "If Mr. Creech wants to pursue a formal offer (no actual or informal offer has been made to date) he would need to be prepared to pursue the matter at his expense to clear the stockyard lawsuit's restrictions," Soper wrote.

Google map has outdated city limits; city has annexed and zoned industrial
138 acres north and east of Midway Station. For a larger image, click on it.

He said during the meeting that such an action would cost at least $2,500 and bring "people from the lawsuit back into Midway Station." The settlement gives any resident of Northridge Estates or Ironworks Estates, or any member of Elkwood LLC, a property owner across Georgetown Road from Midway Station, the right to enforce the restrictions.

Tom Creech, president of the firm, told the Midway Messenger, "I don't want to go to court. . . . I want somebody to want us." He said he might make another approach to EDA after the outcome of a business meeting he has scheduled for Friday.

Creech said Wednesday that he hadn't talked with Soper since before last Friday's meeting, and if he decided to pursue Midway Station land again, "My approach would be to go to the mayor of Midway" and invite him to look at his baling facility in Fayette County, which is separate from his composting facility.

"I don’t want to be the bad neighbor to anybody," Creech said. "I would never propose to put in a compost facility in that park." He said he would like to have a baling facility in Woodford County because he serves so many farms in the county.

"You all depend on these horse farms and the waste off them is an issue, and you ought to be glad I'm getting rid of it," he told the Messenger. His firm also supplies hay and straw to farms. He estimated that a Midway Station facility would employ eight to 10 people, including drivers who work the farms. He said he hires common-carrier trucks to ship the bales.

Vandegrift said Wednesday that he would like to see the baling facility, but he and Soper are concerned about creating no more than 10 jobs by selling five or six acres. Earlier, he noted that EDA and the city want to create at least 10 jobs per acre in Midway Station.

"I do appreciate the fact that it's supporting the horse industry, but just from a dollars-and-cents standpoint, he's got to understand if it were to be something that might end up being litigated, and might be controversial . . . I'd have to explain to people why it was worth it," Vandegrift said. "What butters our bread in Midway is occupational taxes, and this is low jobs." 

However, the mayor said he would not oppose the sale "if there's no smell that bothers neighbors. We don’t want to stir up the ghost of the past." He said, "Overall, I think it's an industry people would support," but "At the end of the day, we just had a lot of unanswered questions."

Creech said the material "smells like a horse barn" and didn't know how far its smell would carry, but argued that prevailing winds wouldn’t waft the smell to Northridge Estates.

Another smell could yet be at work: the smell of money. At Friday's meeting, Soper said selling the property at EDA's price of $65,000 an acre would generate a $97,000 profit that would pay one and a half years' interest on the mortgages for Midway Station. "You gotta have cash to stay alive," he said.

Later in the meeting, Vandegrift said of prospective Midway Station buyers, "A lot of people might be very surprised to know that we've turned down as many as we've accepted … for similar reasons or the same reason."

Council votes to put completion of cemetery pavilion back into budget; first reading scheduled for Monday

Late-winter photo shows that the concrete base, casket platform and walkway for the pavilion have been completed. 

By Aaron Gershon

University of Kentucky School of Journalism and Media

The Midway City Council voted Tuesday to put $30,000 back into the city's draft budget to finish building a pavilion at the Midway Cemetery.

The decision came after Mayor Grayson Vandegrift said Public Works Supervisor Terry Agee saw an elderly woman roaming the cemetery alone, with funeral crowds limited due to the covid-19 pandemic. It was "heartbreaking to see," Vandegrift said.

The concrete base and casket platform of the pavilion have been completed, and Vandegrift had the rest of it in his proposed budget for the fiscal year that begins July 1. When the pandemic hit, threatening payroll-tax revenue, he and the council drafted a “bare bones” budget without the pavilion.

When Lakeshore Learning Materials, the city’s largest employer, said it would call most or all of its workers back soon, the officials drafted a “middle ground budget” with the pavilion as the main unanswered question, which Vandegrift put to the council.

Council Member John Holloway said he visited several cemeteries and said pavilions are "something other cities are doing now,” And "It's something that should we should go ahead and get done."

He also said, "Something that's this close and to being finished, it seems to me to be a waste of money that went into before if we don't go in and finish the deal."

Council Member Bruce Southworth agreed. "It really needs to be done," he said. "It needs to be finished. We already started it; let's go finish it."

The vote was 4-0. Council Members Kaye Nita Gallagher and Stacy Thurman were absent. The meeting was held online, as meetings have been since the covid-19 pandemic hit.

Holloway said Agee wants to ensure that services at the cemetery are of low stress and that the pavilion will help accomplish that, especially in wet weather.

“He's not just blowing smoke,” Holloway said. ”They can handle things so much better and it'll be a better service,” because graveside services with tents require “being so super careful about where the dirt is” placed.

He also said completing the pavilion might even save some money, because f less manpower used in setting up tents.

The only real question was whether to take the $30,000 from the city’s large surplus or, as Vandegrift first suggested, eliminating cost sharing for repair of sidewalks. After some discussion, the council voted to use the surplus, which Vandegrift said is almost $1 million when certificates of deposit are included.

"I think it's the right thing to do, I think it's the proper thing to do," the mayor said after the vote. "I think we're still very fiscally cautious."

Concern remains about a significant loss of payroll-tax revenue amid the pandemic, so Vandegrift reduced that revenue estimate to $737,500 from his original $825,000.

The mayor said Lakeshore has been "on top of the outbreak" since it began in Wuhan, China, because it has a manufacturing center there. Thus, the company believes it will still have a profitable year, which will help Midway's revenue.

Vandegrift said Midway University may still "produce big" payroll-tax revenue regardless of whether or not classes are online or in person.

He said it's hard to tell how the virus will spread, given behavior such as "idiot kids swimming in pools three inches away from another in Missouri." However, he believes there won't be a "typical recession" if the people of Midway continue to keep proper social distance and wear masks.

While much of the budget remained the same from last Monday's discussion of the "middle ground budget," Vandegrift proposed a handful of mostly minor changes that brought no objections from the council. They included:

● Police expense increased from $160,000 to $175,000, based on Midway’s agreement to pay 4.2 percent of the budget of the Versailles Police Department;
● Brick repair work on the Rau Building, which houses City Hall, down to $17,000 from $45,000, with expectation that a grant will pay part of the cost;

● Parks maintenance reduced from $10,000 to $7,000;
● Christmas decorations down to $3,500 from $5,500.

Vandegrift said Wednesday afternoon that he expects the budget to be in ordinance form and ready for first reading at the council's next regular meeting on Monday. Ordinances require two readings before passage.

EDA confident about partner, talks transition from Soper, hires agent and starts transfer of greenspace to city

This map was published in March 2019, when the city annexed the property that EDA had an option to buy.

By Aaron Gershon
University of Kentucky School of Journalism and Media

The Woodford County Economic Development Authority board spent much of its Friday meeting discussing the best way to replace longtime chairman and executive John Soper.

The board also began the process of turning over the green space around the edge of Midway Station, awarded a contract for marketing the industrial and commercial park, and discussed relations with the adjoining landowner who has been its main collaborator recently.

Adjoining property: The EDA had an option to buy 104 acres next to Midway Station from Michael Freeny, but Soper said Freeny doesn't want to renew the option until he has a better idea of its worth.

Soper noted that the property hadn't been annexed and zoned industrial when EDA obtained the option in 2017, and that Freeny has since sold part of it to Lakeshore Learning Materials for its second building. He said Freeny wants to know the cost of building a road through a narrow strip that connects the two sections of the property and would provide access to South Elkhorn Creek.

"I expect that road will cost every bit as much as what he paid for that lot or more," because it will have to be built to city specifications so the city can accept it for maintenance, Soper said. "As far as I know Mr. Freeny is still willing to honor his commitment for access though that property to the creek," which the city wants for recreational purposes. He also said that Freeny knows EDA and the city are his conduits to state economic-development officials.

Midway board member Michael Michalsin said he expects "good dialogue" with Freeny because "He's very easy to work with. . . . I'm happy to stay in close touch to him as is useful for the board."

Transition: Soper, who's been on the board for about 20 years and has been its paid chairman for the last few, will be stepping down after his term ends June 30, leaving the EDA in need of a game plan for leadership.

The board agreed that the "most desirable option" would be to hire a full-time director, but concluded from research that option would likely be beyond its budget. Soper gets $60,000 a year, funded pro-rata by Midway, Versailles and Woodford County.

The board is considering four other options, according to a document distributed by Treasurer Maria Bohanan after the meeting:

● Part-time independent contractor (hired by the three governments, with duties directed by them): This option would “more than likely” be less than the cost of Soper’s contract but raises concerns about the contractor not being readily available as a full-time employee would, and that there could be potential for conflicts of interest.

● Full-time independent contractor (hired by the governments, with duties directed by them): This option offers more consistency in the EDA's messaging and relationship-building, and would establish a “go-to person for all stakeholders in the community, including planning and zoning,” but may be too expensive and could lead to a difficult recruitment and evaluation process. The document also questions whether a full-time person is needed, since a real-estate agent has been hired, but a big “variable” is possible development of the Edgewood property at Versailles, which is tied up in court.

● Third-party entity (hire a firm to handle EDA's needs): This option offers “administrative staff and a strong Rolodex,” would probably cost less than Soper’s contract, and could attract competitive bids from firms “likely eager for business in this environment,” the document says.

● Creating a position as a public employee: This option could make it easier to provide direction but “is problematic due to which entity and whom the individual would answer to,”and would require extra taxpayer funding for retirement benefits and health insurance.

In another element of the transition, the board discussed Soper’s suggestion that the treasurer receive some compensation, which could require a change in the EDA by-laws, which say members will serve without compensation except expense reimbursements but say the “secretary-treasurer,” a position that is now split, can be paid.

The board directed Bohanan to include in the budget for the upcoming fiscal year $4,500 for compensation of the treasurer and/or secretary and a Dropbox subscription to facilitate electronic communication. Soper said he would ask attorney Bill Moore about the need for a by-laws change.

Midway Station agent: The board approved SVN/Stone Commercial Real Estate Advisors to serve as its agent for Midway Station, part of the transition from Soper’s impending departure.

The board and Matt Stone of SVN agreed that selling land in Midway Station is not just about creating jobs but maintaining Midway's character.

Soper said, "The EDA is about jobs and about representing what the taxpayers want, and it's not just about selling land." Stone responded that SVN is not about "pushing a deal through to get some sales done."

Stone said SVN will boost Midway Station’s web presence and advertising, with aerial photos. He said that unlike many commercial firms, it splits commissions with agents for buyers, meaning “We’re employing the entire brokerage community, locally and nationally.”

Asked by Soper how Midway Station’s $65,000-an-acre price compares with other ready-to-use industrial property in the region, he said “It works very well” because the range is $35,000 to $85,000, “but in Lexington you’re dealing with prices that are six figures.” He said he has seen transactions of $75,000 to $85,000 in Georgetown, which some buyers prefer because it is on Interstate 75. “I think we compare well to Georgetown.”

Land transactions: The board authorized Moore to prepare a deed to the City of Midway for the Midway Station tract on which the city’s functioning water tower stands, and to prepare an option for the city to take ownership the 38 acres of greenspace that surround Midway Station, in return for the city agreeing to forgive $500,000 to $750,000 of debt owed by the EDA, not all of which is considered collectible. Both moves have been anticipated for many months.

The EDA also owes the county money, and Magistrate Mary Ann Gill asked if there would be “any effort to compensate Woodford County.” Soper said, “If there was money there, I think that we could,” but “If we can get out of this with paying off the debt … and putting the finishing cap of surface on those roads … I cannot conceive that there’s any cheese left in this trap.”

Midway Mayor Grayson Vandegrift reminded Gill that the county did not participate in the $450,000 financing of a larger natural-gas line for Midway Station, which constitutes most of the debt and “really improved the park’s chance of selling land.”

Soper said the legal instrument from EDA to the city needs to be an option, not a deed, because releasing the mortgage on that part of the property without any direct monetary compensation might be a problem for the banks that hold the mortgages. He said that would “give Midway control of the land without going to the bank and asking them to release it … until after land sale,” which he said would be “A better time to release without any consideration.”

Soper said the city’s “intent to make some or all of it a park” will enhance the value of Midway Station. Vandegrift said it won’t be a park as such, “but a greenspace. Midway is such a picturesque city, we want our industrial park to be as picturesque as an industrial park can be.”

Community Fund seeks grant applications, donations

By Lori Garkovich

Chair, Woodford County Community Fund

The Woodford County Community Fund seeks nonprofit partners who have the capacity to address unmet basic needs arising from this crisis. To date, we have provided nearly $8,300 in grants to nonprofits in Woodford County to support their efforts, and these funds have leveraged an additional $4,000 in community assistance.

While we have come far together through these trying times, the test of who we are as a community is not over. And, tomorrow’s “normal” will not be familiar. New challenges will emerge, especially for those whose lives are fragile for economic, health, or other life situation reasons. This is why our Covid-19 Response Fund provides grants to community organizations with creative responses to the challenges of the new normal related to:
• Food insufficiency
• Rent and utilities assistance if from approved nonprofits
• Medical supplies/prescriptions assistance

Grants are available to organizations and programs that work to provide residents with access to food, prescriptions, health care, childcare, unmet housing needs or other unmet needs. We are especially interested in grant applications that support Woodford County residents (e.g., seniors, parents, the food insecure, the housing insecure, the economically insecure) who have lost access to the resources they need to thrive.

Do you want to be a part of this effort? If so, you can make a donation to the Woodford County Community Fund’s Covid-19 Response Fund. Your contribution will be added to the available resources from our permanently endowed community fund, and will be granted rapidly to organizations on the front lines of support.

How can you do this?
• Write a personal check. Place WCCF Covid-19 Response Fund on the memo line and send the check to the Blue Grass Community Foundation, 499 E. High St., Suite 112, Lexington KY 40507.
• To make a donation using a credit card, go to https://bgcf.givingfuel.com/woodford-covid19

Contact Lori Garkovich, chair, Woodford County Community Fund at Lgarkov@uky.edu or 859-519-0889 if you have questions or you want to inquire about support for a nonprofit.

Mayor says he will use persuasion, 'market forces' to compel compliance in reopening, but not 'three strikes'

Elisha Holt does a Midway Business Association video about the Historic Midway Museum Gift Store, part of a series tied to retail reopenings, as co-owner Leslie Penn watches and Morgan Castle records. The store will reopen on a limited basis.

By Aaron Gershon
University of Kentucky School of Journalism and Media

The Midway City Council heard Mayor Grayson Vandegrift outline the city's game plan as several businesses are set to reopen this week with Kentucky’s covid-19 restrictions gradually being lifted.

Vandegrift also discussed his new “middle ground” budget, and the council approved three zoning-ordinance changes, in another council meeting held online due to the pandemic.

Reopening and enforcement: Vandegrift told the council that he has sent both digital and hard copies of the reopening guidelines from the Centers for Disease Control and Prevention to businesses, and expects workers and customers to follow them closely.

"We're going to be strict about this, as we should be," the mayor said, adding that violations of the guidelines should be reported: "Tipping ain't snitching." However, he said reports should be made to him directly via phone call, text, or email, not to police, who he said are busy enough already.

Vandegrift said “There are some things we can mitigate ourselves, just by talking to business owners,” who are responsible for controlling behavior in their premises. He said after the meeting, “The optics of having a police officer come to a business is not really something we want to do.”

Council Member Sara Hicks said she has had “some kind of scary experiences” in a Lexington grocery of people not wearing masks or keeping six feet apart, and asked Vandegrift “who is responsible for following those rules, besides the customers.”

He replied, "I do consider myself somewhat responsible for making sure the governor's guidelines are being followed. You know, we're not going to create a police state. . . . My approach is going to be this, that no restaurant and no shop wants to permanently damage their brand right now by being the place that created a virus farm."

He said customers will be expected to wear masks indoors, except when eating, but “We as a government can’t force people to wear masks,” so it’s up to business owners.

“Restaurants need to know that right now, their duty is heightened, in a sense,” he said. “They really, I think, need, and I think they will, step up to the plate and help enforce these guidelines, because they don’t want to be the restaurant that gets in trouble; they don’t want to be the restaurant or shop that gets shut down and loses their business license over, you know, infractions. They don’t want to be the restaurant known as the place that started an outbreak in a city that had zero confirmed cases. And I think in that sense, market forces can help keep them in line.”

The mayor, a former restaurateur, said he knows how hard it is to tell independent-minded customers that they have to do thing they don’t want to do, but should think of the mask rule as just the latest addition to the standard sign, “No shirt, no shoes, no service.” He added, “That mask is not to protect you, it’s to protect other people.”

Asked after the meeting what the penalties for violation would be, he said “I don’t think it’s going to come to a point where we have to do something drastic, like pull a business license.” He said he would use “open communication” and “honest dialogue” and give violators an opportunity to comply, but there is “not gonna be three strikes.”

Vandegrift said Midway’s experience would be “a bit of a case study” because it is a small town that attracts many visitors.

“Everyone's got to stay vigilant, using social distance, wearing a mask and using the proper hygiene to keep our numbers as close to zero as possible,” he said. No cases of the virus have been reported in Midway, but “I’m sure it’s been here in one form or another.”

Many visitors come to Midway’s restaurants, which can reopen Friday but with only one-third of their normal indoor seating capacity. Vandegrift said he would issue an executive order letting restaurants put tables in parking spaces that the city has designated for curbside pickup, and waiving fees restaurants normally pay to use their sidewalks to set up outdoor tables

He said the order will also allow alcohol sales at such tables, but he would not reinstate the "entertainment destination center" ordinance that allows patrons to carry open beverage containers between businesses. "I think we need to step slowly into this," he said. "I don't think it's the time to encourage congregation downtown."

Vandegrift said outdoor dining is safer than indoor dining. "Indoors has poorer circulation of air, and ventilation systems can pass covid-19 to others."

Restaurants will still be advised to encourage customers to use their curbside pickup, online ordering and delivery options.

“The restaurants and shops that adapt are the ones that will survive,” Vandegrift said. “No restaurant can survive on just 33 percent occupancy.”

Budget: With reopening on the horizon, Vandegrift discussed his recently revised "middle ground budget" that adds back some expenses he and the council agreed to cut when city revenues were more in doubt.

The “bare bones budget” cut almost $200,000 of spending from the mayor’s proposed budget for the fiscal year that begins July 1.

That is now “not necessary,” he said, mainly because the city’s largest employer, Lakeshore Learning Materials, had furloughed 225 of its 300 employees, putting a hole in the city’s largest source of revenue, the occupational tax on wages and net profits.

Now Lakeshore plans to bring back its full workforce in the next few weeks, and “expects to have a profitable year,” which it did not expect last month, Vandegrift said.

The company also expects to receive a certificate of occupancy in September for its second Midway distribution center, with that facility opening officially in March 2021, adding revenue from up 100 new jobs in the last quarter of the fiscal year.

Nevertheless, Vandegrift reduced his estimate of occupational-tax income for the next fiscal year to $737,500, down from his original estimate of $825,000. He said the city also expects less income from restaurants. The mayor proposed restoring these “bare bones budget” cuts, totaling $67,500:

●            $10,000 for training and travel for employees and elected officials

●            $7,500 in donations (including $5,000 to Court Appointed Special Advocates)

●            $25,000 for street paving, for a total of $50,000

●            $20,000 for the sidewalk cost-sharing program

●            $5,000 for a water fountain and refill station on East Main Street

Vandegrift said he would like to see the council find a way to restore the $30,000 originally budgeted for completion of the pavilion in the cemetery, because city employees have told him about older people having a hard time in bad weather at the cemetery, with few family members to help them. Beshear has limited funeral and burial gatherings to 10 people.

The council will work more on the budget during a special budget workshop meeting at 5 p.m. Tuesday, May 26.

Zoning: The council gave second reading and final passage to three zoning ordinances that will:

●            Allow fences in the front building setbacks along rights of way to be up to 48 inches high instead of 42; John Holloway voted no.

●            Limit display of banners for charitable activities for up to 14 days, with a 14-day waiting period for reinstallation; Logan Nance voted no, calling it “silly.”

●            Prohibit permanent location of recreational vehicles in flood plains. All council members present voted yes; Kaye Nita Gallagher was absent.

The changes, in the countywide zoning ordinance, are being approved by the Versailles City Council and the county Fiscal Court. Those bodies are also approving another change recommended by the Planning Commission, which allows signs to project up to five feet from fronts of buildings, with nine feet of head clearance.

With the council’s tacit agreement, Vandegrift did not ask for approval of that change. He said at the last meeting, “Our downtown is beautiful and pedestrian-friendly, and I feel that this could only lead to a cluttered and unnecessary look.” He said it is “the first time I can remember when all three bodies didn’t adopt the same amendment” to the countywide ordinance.

Other business: Holloway, the unpaid manager of Walter Bradley Park, said it will “probably have 20 times more visitors than we did this time last year for obvious reasons,” but “most everyone is really considerate of getting out of the way of other people.”

Nance and Vandegrift said they had noticed more dog waste in the park. Holloway said he is placing signs to encourage owners to pick up after their dogs, but “Some people just don’t want to.” He said a dispenser for pet-waste bags is located in the fenced dog park. 

Vandegrift announced that the city’s annual Memorial Day service would be held largely online, with readings of the names of veterans on the monument in the cemetery, beginning at 10:30 a.m. Saturday.

City council, mayor draft ‘bare bones budget’ in virus response, but delay final action; sidewalk projects cut

By Emmanuel Flemister
University of Kentucky School of Journalism and Media

The Midway City Council and Mayor Grayson Vandergrift cut 10.6% of expenses from the mayor’s proposed budget for the fiscal year that begins July 1, in a meeting held Monday in response to the coronavirus pandemic and its unforeseeable end.

Vandergrift called the special meeting to draft what he called a “bare bones budget” after the town’s largest employer and taxpayer, Lakeshore Learning Materials, furloughed 225 of its 300 employees.

 With a loss of occupational-tax revenue looming, the council and Vandegrift agreed on $195,500 in potential cuts from the $1.83 million in expenses he had proposed.

”Obviously, a lot of things have changed,” Vandegrift said at the start of the discussion. “I think we’re going to have to rethink the way we budget for next year. . . . I am very concerned about our revenues.”

The mayor’s original budget anticipated $825,000 in occupational-tax revenue, but he said that is no longer certain. “Originally I hoped we could bounce back in the new fiscal year,” he said, but now, “Even if things go better than expected, I just don’t think the economy is gonna be in full stride by July 1.”

Vandergrift and some council members were not too pleased with having to make these changes. “This is a painful exercise for me,” the mayor said. None of the budget cuts are final, since there are two budgets are in the works: the bare bones budget and the “status quo budget,” as coined by Council Member Logan Nance.

Before the meeting, Vandegrift had already subtracted $50,000, delaying the Stephens Street sidewalk project for a year.

The project would extend a walk to The Homeplace at Midway, and Vandegrift was hoping to make it part of a larger project to extend a walk to Walter Bradley Park, which would lead to Northside Elementary School, making the overall project eligible for a federal walk-to-school grant. He said City-Clerk Treasurer Cindy Foster said getting the grant would probably take a year anyway.

Vandegrift suggested, and the council agreed, to suspend the city's cost-sharing program for sidewalks, for which he had proposed $20,000.

Several other projects and expenses are on the list of proposed cuts:

• $30,000 for finishing the cemetery’s pavilion.

       At this, Hicks exulted, “My baby!” She has been on the forefront of the project.
       Vandergrift said, “You know Sara is serious about this when she talks about pulling out her biggest project.” He noted that the concrete base for the pavilion “isn’t going anywhere; it would not be a detriment to that project to be delayed a fiscal year.”
       He said $5,000 needs to remain for the cemetery’s fence: “It’s pretty bad in spots and doesn’t look too great.” This cut was the biggest made by the council.

• $25,000 of the $50,000 proposed for street paving. “You got to leave something there,” said Vandergrift, noting the possibility of small, unexpected paving projects.

• $18,000 from training and travel for city officials and staff, which was originally proposed to be $20,000, down from the current year’s $22,000. This will cut travel to Kentucky League of Cities conferences, for which the elected officials get incentive pay.

       “I think here’s where we really need to make a sacrifice,” Vandergrift said. “This is going to cost me, and it’s also going to cost the veteran council members $2,000, but you know this is a sacrifice we’re willing to make.” He said the remaining $2,000 might be needed to pay for webinars to receive training.

• $10,000 for donations, the same as the current year’s budget. Nance said, “Since we’re not bringing in money, we don’t need to be giving it out.”

• $10,000 from the proposed $20,000 for the coming year’s contingencies, which would have been the same as the current year. “These are the little things that come up that don’t necessarily fit in the ledger, but we decide we have the money to do them,” Vandegrift. We’re saying: less of that.”

• $5,000 from the $35,000 proposed for fire department salaries, which are budgeted for $28,500 this fiscal year. “This is a way to cut $5,000 without really hindering them,” Vandegrift said, adding that salaries were on track to hit $30,000 by June 30.

• $5,000 for the proposed public water fountain on East Main Street. “No one’s going to want to share a fountain anyway,” considering the pandemic, Nance said.

• $2,500 for park improvements, cutting that $5,000 budget in half. The council budgeted $12,500 on park improvements for the current fiscal year.

• $20,000 in City Hall maintenance. Brick tuckpointing was supposed to be done, perhaps with a grant; the proposed total budget for maintenance was $45,000.

The council tentatively decided to keep Vandegrift’s proposed 2 percent pay raise for city employees, and to not shop around for health insurance instead of accepting a 9 percent increase. “I don’t like the idea of messing around with the health insurance, especially at a time of uncertainty, so I think we’re gonna have to bite the bullet on that one,” Vandegrift said.

The council discussed cuts in the water and sewer budgets but decided against it since those are enterprise funds, generating their own revenue. “Believe it or not,” Vandegrift said. “we’ve already cut out a lot from water and sewer in the past.”

The council and Vandegrift agreed they need to be conservative with funds during the pandemic because it is uncertain how long it will last, and there may be a resurgence after the initial wave passes. 

Vandergrift voiced fears of what could happen if the state allows too many businesses to reopen too soon. “There’s a lot of political pressure to just go ahead and push through, but I think that would be a disaster,” he said. “I think it would be a disaster economically. It might end up hurting the economy more in the long run.”

He elaborated, “If you look at every other pandemic in history, it’s like humans keep making the same mistakes over and over again, they come out too quickly.” He even fretted, “If we aren’t careful, we’re going to eat all our surplus on covid-19.”

Midway is sitting on $1.2 million in unbudgeted surplus, and Vandegrift said he is “confident that Midway, pound for pound, has the healthiest city coffers of any city in Kentucky.” It’s important to note the bare bones budget isn’t final.

Council members and the mayor noted that they can amend the budget anytime. “We don’t want to get rid of this stuff, just put it on hold,” Hicks said. “Things are unsure at this time, and we should just make sure the city remains stable . . . and have money for emergencies.”

Council Member Bruce Southworth said, “Everyone’s got to make sacrifices.”He suggested that the council wait a few weeks to finalize the budget, to see “how this is going to last.” Vandegrift said the budget must be approved by June 22 to have it advertised in The Woodford Sun, thus taking effect, before July 1.