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July 25, 2013 By admin

Rechargeable Battery Recycling Corporation Strategic Planning Project

 RBRC Logo

Introduction

The Rechargeable Battery Recycling Corporation (RBRC) (now known as Call2Recycle) is a large Atlanta-based trade association which represents the manufacturers of portable rechargeable batteries.  The batteries are used in a wide variety of applications, including laptop computers, cordless power tools, cordless telephones, etc.  Members of RBRC  include such companies as Panasonic, Sony, Varta and others.  Batteries manufactured by these companies are used in such applications as laptop computers, cordless power tools, cordless telephones, etc.

RBRC’s primary mission is to facilitate the collection and recycling of portable rechargeable batteries.  Since its inception, RBRC-sponsored recycling programs have been responsible for the processing of 75 million pounds of batteries which would have otherwise wound up in landfills.  RBRC’s territory includes the United States and Canada.

RBRC has established over 50,000 innovative consumer collection points for batteries at leading retailers, including Best Buy, Office Depot, Office Max, Sears, Zellers and many others.  RBRC supports its program with an extensive advertising program.  In addition to the retail consumer collection points, RBRC also interfaces with municipal recycling programs, such as curbside collection and drop-off collection programs.

RBRC has also developed partnerships with many of the consumer products companies (such as Black and Decker, Motorola, etc.) which help to support the organization’s goals.

Project Scope

Like many entities, RBRC periodically examines the overall status of the organization and its programs.  RBRC decided that it wanted to conduct an in-depth strategic assessment in order to ascertain how its members, senior staff and principal customers view the organization – in terms of its strengths and weaknesses.  RBRC also wanted to examine its current mission and vision statements to confirm that both continue to adequately serve the organization.  Finally, based upon the findings of the assessment, RBRC also wanted to establish new strategic goals for the purpose of guiding the organization going forward for a period of at least five years.

RBRC retained L.B. Schmidt & Associates, LLC to carry out this project, which included the following components:

  • Organizational Profile (structure, finances, internal/external messaging, etc.)
  • Key Stakeholder Interviews (which included Board members, corporate licensee partners, retail partners, state and municipal recycling officials and senior staff)
  • Compilation of Organization Strategic Assessment
  • Leadership Retreat
  • Final Report

Project Results

During the Key Stakeholder Interview phase, Luke Schmidt interviewed 21 key stakeholders.  The interviews included the completion of an extensive survey document prior to the interview.  The survey document covered a wide variety of issues/topics relative to the Stakeholder and to RBRC.

report The interviews were conducted in-person on a strictly confidential basis in locations throughout the United States and Canada.  In order to assure an accurate reflection of attitudes on various issues, each Stakeholder was given an assurance of complete confidentiality with regard to his/her responses.  (The intent here is to obtain a fully candid response from each Stakeholder as to how they perceive various issues away from a typical group setting in which many individuals are somewhat reluctant to express how they truly feel on various issues)

Following the completion of the interviews, Luke Schmidt compiled the responses in aggregate form (again, no individual responses were ever shared with anyone at RBRC – either in written, verbal or PowerPoint form).  The responses were compiled in a strategic assessment document and presented to attendees at the Leadership Retreat.

During the Leadership Retreat, which was held on Maryland’s Eastern Shore, several Key Issues were identified.  These served as the basis for all subsequent discussion.  The organization’s Mission Statement and Vision Statement were examined as to their current applicability and both were revised.  The attendees also developed 19 short-term goals (to be completed over the next 12 months) and 17 long-term goals (to be completed over the next five years).

Also during the Leadership Retreat, the participants developed strategies (in outline form with personnel assigned to each) for the purpose of implementing the various goals.

Finally, following the Leadership Retreat, Luke Schmidt compiled a Final Report which served as a summary of the action taken during the Leadership Retreat.

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Filed Under: 2013, Projects, Stra Plan, Strategic Planning Projects Tagged With: luke schmidt, strategic planning

July 24, 2013 By admin

M & G Finanziaria Industriale S.r.l. Market Research Project

MG_Group_Logo_2012

 

Introduction

M & G Finanziaria Industriale S.r.l. (M & G) is a large and well established chemical company based in Tortona, Italy.  M & G is one of the largest producers of polyethylene terephthalate (PET) plastic resins, with manufacturing facilities located in Europe, the United States and Mexico.  The company has other interests related to the chemical industry.  The company is constantly introducting new products and technologies to the marketplace.

M & G needed assistance in facilitating the development of a new technology related to solid waste disposal in the United States.  However, before it could develop a detailed marketing plan, it first needed to gain a better understanding of the U.S. solid waste disposal system.  As such, M & G retained L.B. Schmidt & Associates, LLC to provide an analysis of the system.

Project Scope 

The analysis focused on the following key areas:

  • Overview – U.S. Solid Waste Disposal System
  • Overview – Current Landfill Issues
  • Recommendations for the Introduction of New Technologies

Extensive research via the Web was conducted.  In addition, site visits and key interviews were conducted in Louisville and Washington, D.C.

Project Results

Following the completion of the research phase, Luke Schmidt delivered a 120 page report to the client which provided a complete overview of the disposal system, along with recommendations regarding the introduction of the new technology.

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Filed Under: 2013, Marketing/Communications/Media Strategy Projects, Projects, Strategic Planning Projects Tagged With: luke schmidt, Marketing, strategic planning

April 5, 2013 By admin

Somerset group announces study of potential unified government WKYT-TV (Lexington)

Article was originally posted to the WKYT-TV (Lexington) Web site http://www.wkyt.com/home/headlines/Somerset-group-announces-study-of-potential-unified-government-201456651.html

SOMERSET, Ky. (WKYT) – Somerset would become Kentucky’s third-largest city, if it and Pulaski County merged their governments.

Today a group in Somerset announced a study to see if a “unified” government should be explored.

The group Somerset-Pulaski County United held a news conference announcing a study to cost about $35,000 to simply examine the idea of a unified government.

The group is made up of dozens of people from all walks of life, government, and community. They say they simply want to study the idea of a merged government, but those behind the movement say if the unified government did happen, the benefits to the average citizen would be great.

The Somerset-Pulaski County United group says they will pay for a third of the cost. The Somerset City Council and Pulaski Fiscal Court will be asked to each pay a third of the cost.

Officials say the study will explore similar unified governments in Athens and Clarke County, GA., as well as communities in Nevada and Louisiana.

 

Filed Under: 2013, Consolidated (Metro) Community Government News, Latest News Tagged With: consolidated government, luke schmidt, somerset - pulaski county united

April 5, 2013 By admin

Calling for a Unified Pulaski (Somerset) Commonwealth-Journal

 

Article was originally posted to the (Somerset) Commonwealth-Journal Web site http://somerset-kentucky.com/newslive/x2015918125/Calling-for-a-Unified-Pulaski/print.

BY BILL MARDIS, Editor Emeritus and KEN SHMIDHEISER, Managing Editor
Commonwealth Journal

Somerset —

A group of about 60 community leaders, clustered as Somerset-Pulaski County United (SPCU), is embarking on a study to determine if a consolidated or united government in Pulaski County would be more efficient and more responsive to the county’s 63,000 residents.
“This is a study, nothing more,” said SPCU chair and local developer Brook Ping. He stressed that simply conducting the study does not mean any local governments are unifying. Under Kentucky law only voters can determine whether local governments consolidate. And that will only occur after a formal plan is developed by an official Unified Government Commission whose members would be appointed by participating city councils and Pulaski Fiscal Court.
The unified government proposal was unveiled during a press conference held yesterday morning at The Center for Rural Development.
Briefly, the plan as explained by consultant L.B. Schmidt, president of Louisville-based L.B. Schmidt & Associates, SPCU would complete a study in about four months and present its findings to local governmental bodies.
Then, Pulaski Fiscal Court, Somerset City Council and governing bodies of Burnside, Ferguson and Science Hill by ordinance would create an official Unified Government Commission made up of between 20 and 40 members to plan a structure for a unified city-county government.
Pulaski Fiscal Court would appoint half the members of a Unified Government Commission, and the remaining members would be appointed by participating cities prorated on population.
Eubank, because its boundary extends into Lincoln County, would be prohibited by state law from participating in a unified government. Schmidt said he hopes some kind of agreement could be worked out so Eubank could feel a part of a united county government.
Any city can opt out of being a part of a unified government. “That means they won’t have a seat at the table,” observed Schmidt.
Under state law, a unified government would not affect school districts, existing taxing districts in the county, or local option areas. It would not alter boundaries of precincts and legislative districts. Unified government, if approved by voters, would vacate current political positions and establish a new governing structure.
A new Somerset-Pulaski County unified government would create Kentucky’s third largest city with a population of 63,700. It would be the first unified government of its kind in Kentucky. Metro governments in Louisville and Lexington were created under different statutes, although in principle the way they operate would be similar to a merged government here, according to Schmidt.
SPCU members believe that a government here passing the 50,000 population threshold would get “looks” from businesses and industries interested in locating in larger communities. They believe it would enhance the community’s economic development efforts and assist in creating new jobs.
“A unified government would greatly increase the county’s bonding capacity,” Schmidt said, noting that the City of Somerset is approaching its bonding limits.
Somerset, with its current population of 11,296, is the 33rd largest city in Kentucky. Unified, with a population of more than 63,000, Somerset, now a third-class city, would be the third largest city in the state, qualifying for 2nd-class status.
Ping pointed out that unification, if approved by voters, is a slow-moving procedure. He estimated it would take at least four years.
“Speaking with one voice will make it easier to provide for the community’s needs,” assured State Senator Chris Girdler, who spoke in favor of the study.
“This is a once-in-a-lifetime opportunity for all of us to stop and do three things: (1) Examine how our current local government jurisdictions work by identifying strengths and weaknesses; (2) find out how unified governments have worked in other communities around the country; and (3) consider whether unified government might work for us.”
“I look forward to joining my fellow citizens in this process during the next few months as the study takes shape and I encourage everyone to keep an open mind,” said Girdler, who serves as deputy district director for Congressman Hal Rogers.
SPCU spokespersons said recent publicized disagreements between Somerset and Pulaski County had little or nothing to do with formation of the study group.
The first key to success of the planned study is funding. Ping said SPCU plans to raise a third of the necessary $35,000. Somerset City Council and Pulaski Fiscal Court will each be asked to contribute a third of the money next during their regular meetings next Monday and Tuesday, respectively, Schmidt said.
The recently formed SPCU is unique in its scope. Said one observer: “I’ve never seen such a diverse organization in Pulaski County.”
SPCU’s members represent all segments of the community. It includes agriculture, business and industry, education, elected officials, health care, law enforcement and public safety, professionals, religion and transportation.

 

 

Filed Under: 2013, Consolidated (Metro) Community Government News, Latest News Tagged With: consolidated government, luke schmidt, somerset - pulaski county united

April 4, 2013 By admin

Proposed merger of Somerset, Pulaski would produce state’s third largest city Lexington Herald-Leader

Article was originally posted to Lexington Herald-Leader Web site http://www.kentucky.com/2013/04/04/2586569/merger-of-somerset-and-pulaski.html

By Greg Kocher — gkocher1@herald-leader.com
SOMERSET — With fewer than 12,000 residents, Somerset ranks 33rd in population in Kentucky. But if the city plus three others — Ferguson, Science Hill and Burnside — consolidates with Pulaski County into one government representing more than 63,000 residents, it would rank as the third-largest in the state, behind only Louisville and Lexington.
On Thursday, a newly formed group announced that it will seek funding for a study to look at the pros and cons of merging Pulaski County and the four municipal governments.
Somerset-Pulaski County United, a group of 56 residents representing a cross-section of the community, said they will approach Pulaski Fiscal Court and Somerset City Council next week to seek help in financing the study.
How far this effort will go is unknown, and members of the steering group acknowledged that efforts to consolidate governments elsewhere in Kentucky were defeated at the ballot box.
Nevertheless, state Sen. Chris Girdler, R-Somerset, said “the time is now” to study the issue of consolidated government.
“I believe some form of unified government can make this community stronger and a better place to live,” Girdler said. “However, it is imperative that we have more information so that we can make an informed decision.
“We live in a global marketplace, and we want to do everything we can to give Pulaski County a competitive advantage,” Girdler said.
A merged community of more than 63,000 people might attract more attention from businesses and industries and could bring more jobs to the area, Girdler said.
It also would give the community one voice and make it easier to seek grants and appropriations in Frankfort and Washington, D.C.
Moving from “micropolitan” to “metropolitan” status would enhance the community’s job-creation efforts and would create new opportunities for state and federal grants to help the community as a whole.
Some researchers have questioned whether a merger delivers significant savings. Studies of Jacksonville, Fla.’s consolidation with Duval County and of Miami’s merger with Dade County found that costs actually rose post-consolidation “as new bureaucracies emerged,” the Wall Street Journal reported in 2011. The paper also cited a 2004 study by Indiana University’s Center for Urban Policy and the Environment that found that costs creep back in and offset the savings of job cuts.
Material given to reporters Thursday by Somerset-Pulaski County United acknowledged that “while unified government may not save money, it will spend money more efficiently and help to hold down the rising cost of providing government services.
“Somerset-Pulaski County United is raising private contributions for one-third of the study’s $35,000 cost, said Brook Ping, a local developer and chairman of the group. The city and the county will be asked to contribute $11,600 each.
The cities of Burnside, Ferguson and Science Hill have been informed about the effort and could theoretically merge with Somerset and Pulaski County. The city of Eubank probably won’t be allowed to merge because it straddles the Pulaski-Lincoln line. Although a city can cross county lines, a merged government cannot under state law.
Ping emphasized that conducting a study does not mean that any local governments are consolidating. Under Kentucky law, only voters can determine whether local governments should merge.
Lexington and Louisville are the only merged city-county governments in Kentucky. Lexington voters approved merger in 1972; Louisville voters, in 2000. But voters rejected merger proposals in Franklin and Scott counties in 1988, in Daviess and Warren counties in 1990, in Taylor County in 2002, in Franklin County again in 2004, and in McCracken County in 2012.
The SPCU has a proposal from L.B. Schmidt & Associates LLC, a Louisville consulting firm, to conduct the study, which would compare existing forms of government to a unified government. The study would look at other cities across the country that have consolidated, including Lexington and Louisville.
The study would take about four months. The Schmidt firm would then present its findings to the community and make a recommendation on whether to pursue a unified government.
If the community decides to pursue a merger, the mayor and county judge-executive would jointly determine the size of a unified government commission, which would have 20 to 40 members.
That commission would develop a legal plan of unified government within two years of the commission’s appointment. If a majority of the members were unable to agree on a plan for unification within two years, the commission would dissolve.
If, on the other hand, the commission came up with a plan, it would hold public hearings to address questions from residents.
After its final public hearing, the commission would vote on the proposed plan and then submit it to voters. If the unification plan were rejected by voters, another vote could not be held for five years.
Somerset Mayor Eddie Girdler and Pulaski County Judge-Executive Barty Bullock were out of town Thursday could not be immediately reached for comment.
Greg Kocher: (859) 231-3305 Twitter: @HLpublicsafety.
Read more here: http://www.kentucky.com/2013/04/04/2586569/merger-of-somerset-and-pulaski.html#storylink=cpy

Filed Under: 2013, Consolidated (Metro) Community Government News, Latest News Tagged With: consolidated government, luke schmidt, somerset - pulaski county united, Unified government

February 24, 2013 By admin

E’town MSA finishes 11th in GDP growth The (Elizabethtown) News-Enterprise

 

Article was originally posted to The (Elizabethtown) News-Enterprise Web site http://www.thenewsenterprise.com/content/etown-msa-finishes-11th-gdp-growth
By Marty Finley
Sunday, February 24, 2013 at 2:05 am (Updated: February 24, 5:44 am)

The Elizabethtown MSA is no longer the alpha dog when it comes to real gross domestic product growth.

Of 366 MSAs nationally, the Elizabethtown MSA finished 11th nationally in real gross domestic product growth in 2011, recording a 6.1 percent increase from 2010, according to a report issued by the U.S. Department of Commerce, Bureau of Economic Analysis late last week. Odessa, Texas, finished first with a growth rate of 15.16 percent followed by nearby Midland, Texas, at 9.50 percent.

The Elizabethtown MSA rate ranks first among the eight other Kentucky MSAs, and local officials said it reflects consistent growth in GDP. Hardin County United in a news release noted the figures reflect a roughly 30 percent jump in overall GDP growth since 2008. Luke Schmidt, a consultant with HCU, said the MSA also is outperforming peer military markets in GDP growth, such as Hinesville-Fort Stewart, Ga., and Manhattan-Fort Riley, Kan.

“The area is doing well,” Schmidt said.

Real GDP measures an area’s gross product based on the national prices for goods and services produced in an MSA, according to the BEA. The rate is adjusted for inflation.

In real money, the MSA ranked 259th nationally in GDP at $5.6 billion, according to the report.

HCU in its release argued the rankings help attract companies wanting to expand into progressive and flourishing communities, opening up more job opportunities.

“And it’s sustained growth,” Schmidt said. “It’s not a flash in the pan.”

Elizabethtown was ranked first in GDP growth in 2010 with a 14.4 percent growth rate, but revised rankings for 2010 on the bureau’s website listed a growth rate of 16.62 percent during that year, dropping Elizabethtown to fifth.

Schmidt reviewed the documents but said the changes for 2010 were made quietly. The BEA, he said, has not issued follow-up statements explaining the reasons behind the revision.

Hardin Judge-Executive Harry Berry said the MSA has consistently finished strong in GDP growth and the 11th place ranking for 2011 reflects well on the area’s ability to maintain its success.

Berry said the rankings are impressive considering the Elizabethtown MSA is significantly smaller than the major metropolitan areas touting much larger GDP totals, referencing the Dallas and San Francisco MSAs.

Real GDP increased in 242 of the 366 MSAs during 2011 — growth sparked by professional and business services, durable-goods manufacturing and trade, according to the report.

Berry said Hardin County has benefited from expansions in manufacturing and industry with companies restoring their workforces to pre-recession levels.

“People like to be with a winner,” he said.

The Elizabethtown MSA also finished in the top five in personal and per-capita income growth in 2011.

“With continuing high rankings in personal income growth, per-capita income growth and GDP growth, our region will continue to receive ‘looks’ from companies that are interested in expanding to a dynamic and growing market,” Berry said.

Marty Finley can be reached at (270) 505-1762 or mfinley@thenewsenterprise.com.

Filed Under: 2013, Economic Development News, Latest News Tagged With: Economic development, Hardin county united, luke schmidt

November 28, 2012 By admin

Airport Survey Confirms Potential (Somerset) Commonwealth-Journal

 

Article was originally posted to the (Somerset) Commonwealth-Journal’s Web site http://somerset-kentucky.com/newslive/x1951907198/Airport-survey-confirms-potential

by Bill Mardis Commonwealth Journal

Somerset —

Results of a regional survey of airline travelers announced Tuesday indicate a robust market in this Southern Kentucky area for commuter airline service at Lake Cumberland Regional Airport.
Released by the Somerset-Pulaski County Development Foundation, the survey indicates a potential annual enplanement of 142,166 passengers who would use airline service in and out of the Somerset airport.
Both Martin Shearer, executive director of the development foundation and Luke B. Schmidt, president of L.B. Schmidt & Associates, LLC, project consultant, said a airline company is interested in providing commuter service at the local airport.
“It’s like recruiting an industrial prospect,” said Schmidt. “Name of the interested commuter service is confidential at this point.” He said there is still a lot of work to do, “ … dotting i’s and crossing t’s … like putting together a jigsaw puzzle.”
Schmidt noted the survey’s two strategic goals:
• Recruit a regional airline that is aligned with a major carrier such as American, Delta or US Airways.
• Establish service to a major connecting hub.
Schmidt said the interested airline service meets these objectives. The company has service in several small markets and  “ … has been around a long time,” Shearer revealed. He said the company is interested in establishing connection with a major airline hub and flying out of Somerset.
“We have made a lot of progress toward establishing a major market profile,” said Schmidt. The survey’s findings include the following information:
• Responding companies reported booking a total of 312 round trips by air each month.
• Approximately 612 visitors fly to the region each month to meet with responding companies.
• Total number of round trips by air to/from the region with responding companies equals 923 each month.
• Lexington is currently the preferred airport for flyers in Somerset, London and Corbin.
• Hours required to drive (one-way) to the primary airport in Lexington averaged 1.5 hours.
• Ninety-one percent of responding companies will use the service if a major connecting hub with reasonable fares is provided.
Although a commuter airline service out of Lake Cumberland Regional Airport would ultimately serve 16 counties in Southern Kentucky, Schmidt said the survey focused on the Somerset, London and Corbin areas. The reason, he said, is because these communities are the core of the proposed market with a combined population of 384,000. Schmidt met personally with several large employers in Somerset, London and Corbin areas.
A Florida-based commuter airline operated out of Lake Cumberland Regional Airport, first to Nashville and then to Washington, D.C., for a little more than two years. It was subsidized with about $900,000 obtained by Congressman Hal Rogers from the U.S. Department of Transportation and $100,000 in local matching funds. No sustaining local source of funding developed before the federal funds were exhausted and the airline shut down February 19, 2010.
The survey to reestablish commuter air service out of Lake Cumberland Regional Airport is an effort by Somerset-Pulaski Development Foundation, Somerset-Pulaski County Chamber of Commerce, Somerset-Pulaski Convention & Visitors Bureau, Corbin Economic Development Agency, London/Laurel County Chamber of Commerce, local airport board and Somerset and Pulaski County governments

Filed Under: 2012, Economic Development News, Latest News Tagged With: Airline service, aviation, Economic development, luke schmidt, media

November 3, 2012 By admin

Airport gets $1 M pledge (Pikeville) Appalachian News-Express

 

 

Article originally posted to the (Pikeville) Appalachian News-Express Web site http://news-expressky.com/

BY RUSS CASSADY

Editor

After months of waiting, the controversy over whether coal severance funding should be used to finance a commercial air service project at the Pikeville-Pike County Regional Airport ended Friday when it was announced that $1 million had been allocated to the project.

In a press conference at Pikeville City Hall on Friday, representatives of the groups working to establish commercial air service at the airport gathered to make the announcement, made official by a statement from Gov. Steve Beshear that the project would receive the funding.

Pikeville City Manager Donovan Blackburn, who has been an active participant in several events and announcements this week regarding new projects in the City of Pikeville, said during the press conference that the air service project is “extremely important” to the success of the region.

“The face of Pikeville is forever changing,” he said. The commitment of $1 million in multi-county coal severance funding, Blackburn said, brings the total that those working on establishing the service have to $1.75 million, which will be used to establish a revenue guarantee program for the carrier which commits to coming to Pike County.

And, with the commitment, the air service could be established fairly quickly, according to Luke Schmidt, the consultant hired by the Southeast Kentucky Chamber of  Commerce, City of Pikeville and Pikeville-Pike County Airport Board to work on establishing the service.

“We hope to have a commitment in hand by the end of the first quarter of next year,” Schmidt said.
According to Schmidt, he works in several communities throughout the state, but that this one sets itself apart. “This is clearly one of the most progressive cities in the state,” he said. And according to Chamber President Jared Arnett, this project is just one of many that is helping to change the  business climate in Eastern Kentucky, despite questions over the energy industry.

“It’s imperative that we step up … and create a climate conducive to new investment,” Arnett said.

A statement from Beshear’s office said the successful recruitment of an airline will “significantly enhance economic development efforts and the creation of new jobs not only in Pikeville and Pike County, but also in the surrounding 12 counties.”

The funding was almost not obtained earlier this year. After announcing that the funding was  possible and that the support of Floyd County’s fiscal court had been obtained, organizers ran into questions from the Pike County Fiscal Court over the viability of the project and whether the multi-county coal severance funding, which had been uncommitted, should be used for the project.
After weeks of debate and a public forum hosted by the Appalachian News- Express, the Pike Fiscal Court voted 5-2 to support the funding. The county’s support was required for the funding to be processed.

One of the “No” voters, Dist. 6 Magistrate Chris Harris compared the funding, which will guarantee revenue for an airline, to “corporate welfare.”

“Many of us here would like to see commercial air service in Pike County; that’s not the issue,” Harris said during a fiscal court meeting. “The issue is, ‘At what cost do we want to see commercial air service in Pike County?’ At a time when we are looking at a loss of jobs, declining tax revenue, a limited amount of funding, I don’t think Pike County, right now, I don’t think we can afford this kind of project.”

Both Blackburn and Schmidt spent time on Friday thanking Pike Judge-Executive Wayne T. Rutherford and Floyd Judge-Executive R.D. “Doc” Marshall for their support. Blackburn said that a formal check presentation ceremony for the funding, which will include Beshear’s presence will be held at a later date.

Filed Under: 2012, Economic Development News, Government Relations News, Latest News Tagged With: Airline service, aviation, communications, Economic development, Government relations, luke schmidt

November 3, 2012 By admin

Pike airport receives $1M grant Williamson (WV) Daily News

Article originally posted to the Williamson Daily News Web site http://www.williamsondailynews.com/view/full_story/20701722/article-Pike-airport-recieves–1M-grant

Pike airport recieves $1M grant

Pike_airport_recieves_1M_grant0_1351912898
 Julia Roberts Goad

Staff Writer

PIKEVILLE, Ky. — The Pikeville/Pike County Airport came a step closer to commercial air service with the announcement of $1 million in grants from the Kentucky Department for Local Government from multi-county coal severance tax money.

The grant will be awarded once an airline is selected to provide commercial air service to the airport (PBX).

In addition, a Federal Small Aviation Grant granted the Pikeville City Commission received in 2011 was granted an extension of the $750,000 grant that was received for commercial air service last year, bringing the total of funds for the airport to $1.75 million.

Two commercial airlines have expressed interest in serving PBX, although both companies have remained anonymous.

Recruiting an airline to provide commercial service is one of the purpose of the grant. One of the methods of recruiting an airline is a revenue stream package. An airline doing business in the county would set a financial goal for each month. If the company falls short, money from the revenue guarantee package would be used to bring the amount of money the airline makes up to the monthly goal. The money would be given to the airline on a monthly basis so the company would not incur financial losses during the first two years of operation.

Luke Schmidt of LB Schmidt Associates, a consulting company which has been working with the City of Pikeville and the East Kentucky Chamber of Commerce on the airport project, said the revenue stream package is essential to an airline.

“It is expensive to for an airline to start a new route,” Schmidt said. “They have to invest in new planes, employees, equipment. If they lose too much money too soon, they aren’t going to stay. We need to make it profitable sooner rather than later.”

The grant was obtained after garnering support from the Floyd and Pike Counties Fiscal Courts.

However, the support of the Pike Court was not unanimous vote. Two of the six magistrates on the Court were not in favor of asking for coal severance tax money for the airport. Both Chris Harris and Jeff Anderson said they felt the airport would not be profitable. After initially refusing to throw his support behind the request for coal severance funds, Judge Executive Wayne T. Rutherford did vote in favor of the request.

Millions of dollars have already been used in the development of PBX, Pikeville City Manage Donovan Blackburn said, including $3,383,971 to complete the parallel taxiway alongside the airport’s primary runway, $330,513 in improvements and repairs to the primary runway, 679,000 for a new nine-aircraft T-hangar and $109,304 for the installation of a new Automated Weather Observation System.

Jared Arnette, President of the East Kentucky Chamber of Commerce, said the airport is the result of groups working together.

“This is the best example I have ever seen of teamwork,” Arnette said. “Our businesses spoke in one voice. The airport is part of the vision of economic development, they see value of a commercial airport. It is a milestone we have reached. In a time when people are concerned with energy, it is important to step up and say we are creating opportunity.”

Read more: The Williamson Daily News – Pike airport recieves 1M grant

Filed Under: 2012, Economic Development News, Government Relations News, Latest News Tagged With: Airline service, aviation, Economic development, luke schmidt

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