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2011

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Schmidt: Commuter airline deal could be finalized by year’s end (Elizabethtown) News-Enterprise

By Marty Finley
Wednesday, October 26, 2011 at 3:00 am (Updated: October 26, 1:59 pm)
The airportwas abuzz Monday as crews worked feverishly to finish roughly $5 million worth of infrastructure upgrades to the airport by next month.

In addition to a deeper overlay on the 6,000-foot-long runway, the Elizabethtown Regional Airport at Addington Field is making improvements to its lighting system and its weather service program, said Joe Yates, chairman of the Elizabethtown Airport Board.

Elizabethtown City Council got an intimate look at the changes at the airport during its work session, in which the board and its consultant, Luke Schmidt, updated city officials on an aggressive plan to attract a major airline by the end of the year.

Since revealing its pursuit of a commuter airline service with a connection to a major hub, the airport has rebranded itself and launched millions in upgrades to meet state and federal aviation guidelines, Schmidt said. The airport also is in the process of moving its certification from a general aviation airport to a commercial airport, Yates added.

Schmidt said the airport started dialogs with seven major airlines, but airline mergers, bankruptcies, the economy and rising fuel costs stalled talks in many cases.

One major airline is showing increased interest in expanding to Elizabethtown, though, and hopes are a deal will be finalized by the end of 2011 if not sooner, Schmidt said. The airline could not be revealed for confidentiality purposes.

If a deal is struck, Yates said the airport would approach the Kentucky Department of Aviation and the governor’s office for a state grant to build a passenger terminal, which is expected to cost $3.5 to $4 million and is required to be in place before the airline service can launch. The board wants to launch the service within the next year.

Yates said the airport also will have to provide money upfront for the airline, either by raising $2 million through a travel bank or offering a $2 million guarantee.

Schmidt and Yates said the travel bank is preferred and could be obtained by approaching local businesses to purchase subscriptions to the service. Schmidt said the minimum subscription would be $1,000 and would increase for businesses that travel frequently. As an incentive to subscribe to the service, businesses would have subscription fees reimbursed in full if they utilize the service. Flight costs would be reimbursed upon proof of travel until the amount of the subscription is fully repaid, he added.

“It’s not a donation,” Schmidt said.

The travel bank creates built-in business for the service because most businesses will want to get their money back if they purchase a subscription, he added.

Schmidt said the airline appears to prefer the travel bank method, too, but the guarantee would be needed if the airline rejects the concept. Schmidt said a guaranteed amount was raised for an airline service in Manhattan, Kan., to shore up shortfalls in its first few months of service, when it started turning a profit. The airline has since added several flights to Dallas Fort Worth and Chicago. Schmidt said the work in Kansas to promote the airport, which is located near Fort Riley, is an indicator smaller military markets can be successful.

And the local airport can be even more successful because Fort Knox is larger and the air service market in Elizabethtown dwarfs the market in Manhattan, Schmidt added.

The service would be geared toward military and business flights, Schmidt said, and he projected Fort Knox would have more than 100,000 air trips for trainees in 2012. Flying out of Elizabethtown would be easier and more affordable for the post, he added.

“We’re real confident” it will be successful, Schmidt said.

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

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Rogers Visits Visionary Groups in Eastern Kentucky (Press Release)

 

Press release originally posted to Congressman Hal Rogers’ Web site directed to:

Washington, DC, Oct 21 – U.S. Congressman Harold “Hal” Rogers (KY-05) visited with two visionary groups in eastern Kentucky on Wednesday, October 19th. During a monthly meeting in Whitesburg, the Letcher County Planning Commission updated Congressman Rogers on progress and plans for economic development and tourism in Letcher County.

“The Letcher County Planning Commission is on the right track,” said Rogers. “You can change your outlook and make great things happen in your community by getting involved. I commend you for being proactive and planning your work and working your plan.”

Congressman Rogers later joined the newly formed Southeast Kentucky Chamber of Commerce, made up of eight counties, including Floyd, Johnson, Knott, Lawrence, Letcher, Magoffin, Martin, and Pike Counties. Together, they announced the U.S. Department of Transportation awarded a Small Community Air Service Development grant to implement a scheduled passenger airline service at the Pikeville-Pike County Regional Airport.  The $750,000 Federal Aviation Administration grant will provide a revenue guarantee for a commercial airline service to be established in eastern Kentucky.

“This grant is a big step toward opening greater doors of opportunity for eastern Kentucky,” said Rogers. “This project has been in the works for more than two years and I am pleased that the Department of Transportation recognized the hard work and commitment from area leaders to bring this much needed air service to the region. A scheduled passenger airline service will benefit economic development, tourism and much more.”

The Small Community Air Service Development Program offers highly competitive grants to small communities across the country where air fares are higher than average and improved service will provide benefits to businesses, educational institutions and other enterprises. The City of Pikeville was one of only 29 communities selected across 22 states to receive this grant. Only three of the awards will assist communities in acquiring scheduled airline service. City and airport leaders are working with L.B. Schmidt and Associates, LLC to continue discussions with a commercial carrier.

“This is not a Pikeville project. It is an eastern Kentucky project,” said Tracy Syck, Chairperson of the Southeast Kentucky Chamber of Commerce that represents eight counties. “Businesses in cities along U.S. 23 and highway 80 will all have a local commercial airport to call their own. We are working diligently to secure an air carrier that will be as committed to our region as we are.”

“We are leaps ahead of where we were last year and everybody is really excited,” said Donovan Blackburn, Pikeville City Manager. “I believe you’re going to see commercial air service at the Pikeville-Pike County Regional Airport very soon. We will be making some improvements at the airport and working with TSA for security at the terminal to prepare for our new air service.”

The Pikeville-Pike County Regional Airport is approximately 6 miles northwest of Pikeville, Kentucky.  More than 20 aircraft are based on its field, including single- and multi-engine airplanes.

Grants are awarded through the Federal Aviation Administration (FAA), a part of the U.S. Department of Transportation.  The FAA is responsible for the safety of civil aviation.

Rogers has served Kentucky’s 5th Congressional District since 1981. With a focus on economic development, job creation, fighting illegal drugs and preserving Appalachia’s natural treasures, he has a reputation for listening to his constituents and fighting for the region he represents.  For more information visit www.halrogers.house.gov.

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Congressman Hal Rogers makes announcement of federal aviation grant WYMT-TV (Hazard)

Article originally posted to the WYMT-TV Web site directed to: http://www.wkyt.com/wymtnews/headlines/Congressman_
Hal_Rogers_makes_announcement_of_federal_aviation_grant_
132212238.html

Congressman Hal Rogers (R) of Kentucky told those gathered at a reception at University of Pikeville’s Booth Auditorium that a $750,000 federal aviation grant has been approved for take off.

The formal announcement made by the congressman follows efforts made by him along with a partnership between the Southeast Kentucky Chamber of Commerce and Pikeville, Pike County Regional Airport and the City of Pikeville.

“We worked with them on getting a small airports grant out of Washington which has been successful and we have tried to help them to locate a carrier that would want to fly in and out of here and to work with the T.S.A. – Traffic Security Administration,” said Rogers.

Officials said it will help the region’s economy.

“For business administrative folks who are considering building a location here or expanding to this part of the world, it will make it much easier for them to get here. for the current business community throughout the region it will make it much easier when they have to go someplace to visit a customer, visit a corporateoffice or a home office,” said Luke Schmidt, a consultant brought in who has recently worked with an airport in Elizabethtown.

“Years in the past we have had to leave to go to places like Lexington and Huntington and Charleston,” said Pikeville City Manager Donovan Blackburn.

“Now what we are seeing is the trend in reverse, people are now coming here to the events at the east Kentucky expo center, the hospital.”

The reality is that we are going to have the opportunity to attract businessesthat we would have never attracted before>

The congressman said it will also help anyone just wanting to take a trip.

“It will be a huge convenience for people that live in this immediate area,” said Rogers.

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NKY forum focuses on merging gov’t services The (Covington) Kentucky Enquirer

COVINGTON -In 1872, Covington and Newport considered merging.

That’s the first newspaper reference to local government mergers in Northern Kentucky, according to Northern Kentucky University history professor Paul Tenkotte.

Most cities have opted to remain independent – Campbell County has 15 cities and Kenton has 18 – but the idea of consolidation never left the minds of local leaders.

Tenkotte and other experts at a forum Tuesday night at the Carnegie Visual and Performing Arts Center discussed the economic benefits and challenges of merging governments and services. Some said other areas, such as Louisville, gained economic development advantages by consolidating governments.

The answer to why Northern Kentucky has so many cities lies with the Great Depression and World War II, Tenkotte said.

The leaders of many Kenton County suburban cities in the 1920s, such as Fort Mitchell and Park Hills, envisioned being annexed by Covington, he said. But the Works Progress Administration in the Great Depression built infrastructure in these cities, and the World War II generation’s volunteerism sustained the small cities.

“The WPA … provided funds on a cost-sharing basis to build city buildings, school sidewalks, sewers, water treatment plants, you name it, and the suburbs took advantage of that and got great infrastructure built,” Tenkotte said. “So then we go into World War II. After World War II, the suburbs can take advantage of what Tom Brokaw and others called the Greatest Generation, a generation that was very involved with civic engagement … and they looked and said we don’t need Covington anymore.”

Rising pension costs for cities has many looking at ways to save money. That might mean the merging of services, Crestview Hills Mayor Paul Meier said.

“If something drastic doesn’t happen with that pension system, we’re going to have to look at least at the consolidation of services,” Meier said. “That’s one of the things our city has done. We don’t have our own fire department. We contract that out. We contract the police department. I think you will find that in a lot of places going forward.”

The consolidation of city and county governments doesn’t happen often in the United States, Suzanne Leland, a political science professor with the Urban Institute of the University of North Carolina, told the audience Tuesday night.

Only 40 city-county consolidated governments exist in the United States, she said, including Lexington and Louisville. When they get proposed, 85 percent get defeated at the ballot box, Leland said.

Most city-county mergers happen with areas that have a populations of 100,000-300,000, she said, and succeeded when the campaign stressed the economic development value over the government efficiency, Leland said.

The forum Tuesday night featured people who worked elsewhere in the state on consolidation.

Some leaders in Hardin County, which has a population of 105,000, have proposed consolidating the government of the county and the cities, which includes Elizabethtown and five other municipal governments.

In addition to less duplication, the merging of governments would give Hardin County more clout, said Luke Schmidt, a consultant who is working on the proposed Hardin County consolidation. A unified government in Hardin County would make it the third-largest city in the state.

“Because of that, economic development will be more focused – more singularly focused – and we expect good job creation to come from that,” Schmidt said.

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Hardin County’s Choice: Become super-city, or keep individuality? (WDRB-TV)

ELIZABETHTOWN, KY. (WDRB)— Become a Kentucky super-city, or keep individuality intact? Some cities in Hardin County are deciding they would rather stand alone.

It’s an uphill battle for Hardin County United, trying to convince six cities to merge — and Radcliff is already saying “no.” That leaves Elizabethtown, Vine Grove, Upton, Sonora, and West Point in the mix.

Elizabethtown Councilman Larry Ashlock says, “The thing about what I’ve heard from individuals is sort of the old saying, ‘If it’s not broke, don’t fix it.’”

Elizabethtown leaders aren’t getting good vibes from residents. Tim Walker, Elizabethtown Mayor, says, “The questions they ask is, ‘Well, what would be the benefits if we merged? What services would we receive that we’re not receiving now?”

The merger would create the third largest community in the state, making it easier to receive money, and with a bigger voice in Frankfort and D.C.

Here’s how it would work: Hardin County United informs the public at a series of events, such as a recent Rotary meting. Then the town councils would decide if they’re interested. That would create a commission in Hardin County to develop the plan.

But voters would have the final say.

Luke Schmidt of Hardin County United says, “All we’re asking is for people to give it a chance. Let us put the commission together.”

“I feel that what we have now works, I think it works now,” said Walker, “and I’m just not convinced of the positives at this time.”

Another complaint — residents don’t want to lose their town’s identity.

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HCU consultant explains unification review process The (Elizabethtown) News-Enterprise

Guest column by Luke B. Schmidt, consultant to Hardin County United

 

Hardin County’s citizens have a unique opportunity. Hardin County has the opportunity to unify its existing good local government and become one of the largest and most progressive communities in Kentucky.

However, before the citizens will be able to consider and vote on whether or not the community should unify, a specific plan first must be developed. Under Kentucky law, this plan only can be developed by what is called the unification review commission.

Let’s be clear: Only the voters of Hardin County can consider and approve unified government.

Hardin County United cannot impose unified government.

Hardin Fiscal Court and the six city councils cannot approve unified government.

But in order to get to the heart of the matter, HCU is asking each of the local government entities to approve an ordinance to create the unification review commission.

Approval of the ordinance does not mean that Fiscal Court or any of the city councils are endorsing (or creating) unified government. It simply means that they are willing to give voters the opportunity to consider unified government at the ballot box.

Once approved and sworn in, commission members will do the hard work of actually developing a detailed plan. The commission will hold a series of meetings (all open to the public) to develop, step-by-step, the plan for a unified Hardin County. This plan will spell out just exactly how Hardin County could be governed under a unified form of government.

Upon completion, the plan will be presented to voters. Residents will have ample opportunity to read and study the plan and decide for themselves as to whether unified government is the direction that the community should take going forward.  Again, only the voters of Hardin County can make this decision – not HCU or the local government entities.

As the consultant to HCU, it has been my privilege during the past 14 months to work with HCU’s governance subcommittee as it has carefully reviewed and considered the issue of unified government for Hardin County. During this time, the subcommittee has met with representatives of various groups, including law enforcement, fire protection, Fort Knox, state elected officials as well as federally elected officials. We received valuable input from each group.

In addition, and as part of the fact-finding process, the governance subcommittee met with former Lexington Mayor Foster Pettit and former Louisville Metro Mayor Jerry Abramson, both of whom served prior to and following the unification of each of those cities.

Much of what we have learned can be found by visiting HCU’s website (www.hcu.lbschmidt.com) and by clicking on the large blue button on the home page which will take you to the special section that HCU has created on unified government, including frequently asked questions.

The News-Enterprise recently asked in an editorial “Can it hurt to talk about something new?”

HCU believes that now is a good time for the community to engage in a fully open discussion about unified government and its potential benefits. This begins with the creation of the unification review commission and its development of a plan. There really isn’t any risk whatsoever to the community when it comes to developing the plan and learning what unified government could look like.

The process ends with the voters who will decide if the plan is in the community’s best interest.

Luke B. Schmidt is president of Louisville-based L.B. Schmidt & Associates and is serving as a consultant to Hardin County United.

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Hardin County could become KY’s 3rd largest community (WDRB-TV)

By: Rachel Collier – rcollier@fox41.com

HARDIN County, Ky. (WDRB Fox 41) — Hardin County is one step closer to becoming the third largest community in Kentucky, but there’s still a lot of work to be done before it could happen.

A yellow shaded area shows where the majority of Hardin county residents live. “You have 85,000 people (in that area). That is easily the 3rd largest community in the state of Kentucky,” said Luke Schmidt, of Schmidt and Associates Consulting Firm.

Because the boundaries are dividing the cities, it is not the 3rd largest. Take those boundaries down and you have strength in numbers. In the past year, Luke Schmidt’s consulting firm has traveled to merged cities in Georgia and even to Lexington and Louisville. He says his team has learned that merging would be a plus for Hardin County, as well.

Hardin County United first needs to convince six city councils that merging is the right thing to do. Those cities are Elizabethtown, Radcliff, Vine Grove, West Point, Sonora, and Upton. “If any of the communities choose not to participate, they’re essentially left out of the process,” said Schmidt.

If those city councils decide to come up with a merger plan, voters have the final say. Hardin County Circuit Court Judge Ken Howard says the merger would streamline government and use tax dollars more efficiently.

But there is still a long road ahead.  After all, it took Louisville three tries to merge.

The first informational meetings are next week. For local government officials, it is Wednesday at Hardin Memorial Hospital at 5:30PM.

The community forum is Thursday at John Hardin High School’s Performing Arts Center at 4:30PM.

If city councils approve, the public will vote in November of 2012.

If it is approved by voters, the merger would take about two years (2014) to go into effect.

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Hardin County United Launches Unified Government Initiative (Press Release)

 

HCU logo_3Press Release

Contact:
The Honorable Ken Howard
Hardin Circuit Court Judge
270.763.2519 

Luke B. Schmidt, President
L.B. Schmidt & Associates, LLC
502.292.2898

Hardin County United Launches Unified Government Initiative

Effort Will Create Kentucky’s Third Largest Community, New Clout in Frankfort and Washington, and Streamline Government; 

HCU to Request the Appointment of a Unification Review Commission

 

Elizabethtown, Kentucky (July 29, 2011) – Hardin County United (HCU) today launched an initiative to develop unified government in Hardin County by announcing the findings of its year-long examination of the issue.

During the past year, HCU commissioned a study of unified government which was conducted by Louisville-based consulting firm, L.B. Schmidt & Associates, LLC.  HCU’s Governance Subcommittee, chaired by Hardin Circuit Court Judge Ken Howard, conducted community leadership meetings with groups representing law enforcement, fire protection, Fort Knox, state elected officials and federal elected officials. HCU also received presentations from former Louisville Metro Mayor Jerry Abramson and former Lexington-Fayette Urban County Mayor Foster Pettit on the issue of government unification.

Upon review of the issue, both HCU’s Governance Subcommittee and Steering Committee reached consensus and agreed that Hardin County would be well served with unified government, citing the following benefits:

  1. The ability for the community to speak with one voice and more efficiently target grants and appropriations which will benefit the entire community while improving the community’s standing and stature in Frankfort and Washington, D.C.,
  2. The attainment of a new level of clout that will assist the entire community with economic development, the creation of new jobs and which will create Kentucky’s third largest community,
  3. Streamlined government which will result in the more efficient delivery of government services to all citizens, and,
  4. The achievement of economies of scale which will result in the more efficient use of public resources (tax dollars)

“Hardin County is fortunate to have good local government in place,” said Ken Howard.  “The real opportunity here is to take local government to the next level, to capitalize on the growth opportunities presented by base realignment and ongoing Army restructuring at Fort Knox and the Glendale mega site.”

“Unified government won’t necessarily save money, but what it will do is organize government more efficiently and eliminate duplication of effort,” said Howard.  “Our research indicates that the rate of growth in the cost of public services has been shown to be reduced in unified governments, thereby reducing the need for frequent tax increases.”

The Hardin County Unified Government Study examined Hardin County’s existing local government structure along with five communities in Georgia and Kentucky that have been through the unification process.  Some of the key findings from the Study include:

  • Hardin County, a community of 105,000 people, is governed by 94 government jurisdictions, county and municipal departments, utilities, boards and commissions

(By comparison, In the case of Columbus and Muscogee County, Georgia prior to unification, the community was governed by 44 jurisdictions and departments; with unification, that number was reduced to nine primary departments)

  • Significant duplication exists between County government and the six municipal governments in terms of workers and budgets
  • In spite of the fragmented manner in which the community has developed, a significant urban core has emerged in Hardin County between the three principal cities – Elizabethtown, Radcliff and Vine Grove – and the rapidly developing unincorporated areas of Cecilia, Glendale and Rineyville
  • If this area had no immediate boundaries, its population would total 85,000 people and it would easily be Kentucky’s third largest city (see map which accompanies this release)
  • Competition for support of issues, grant/appropriation requests, etc., exist in counties with more than one local government jurisdiction – would this process be better served with one request from a unified government speaking with one voice?
  • In the case of each of the five unified communities which were examined, the communities were able to streamline government, mitigate future cost increases and increase their standing and stature (clout) in their respective state capitols and in Washington, D.C.

“Unification has provided major benefits to the communities that have been through the process,” said Luke B. Schmidt, consultant to HCU.  “In every case, communities came together through unification and began speaking with one voice and the net result has been increased clout with state and federal governments, expanded economic development and increased representation for all citizens through unified government councils.”

“Unified government leads to less parochialism and forces government to conduct a ‘big picture’ analysis of issues with more progressive outcomes,” Schmidt continued.  “We found out that economic development prospects like to deal with one government, and in the case of Lexington, unified government is one of the four cornerstones that help to sell Lexington as a place to do business.”

Going forward, HCU plans to take the leadership role in educating and informing the Hardin County community and each government entity about the facts of unified government by speaking to various groups and interested parties.

HCU is hosting an information session open to all elected local government officials on Wednesday, August 3, 2011 at Hardin Memorial Hospital’s fifth floor conference room beginning at 5:30 PM.

Citizens are invited to HCU’s community forum which will be held on Thursday, August 4, 2011, at the Hardin County Performing Arts Center at John Hardin High School, 384 W.A. Jenkins Road, Elizabethtown, and beginning at 4:30 PM.  Interested citizens are encouraged to attend.

HCU also plans to approach each local government entity beginning in September and request the passage of an ordinance which will create a Unification Review Commission (pursuant to Kentucky Revised Statutes Chapters 67.900 – 67.940).  Members of the Commission (which will include between 20 and 40 citizens) will be appointed by those local government entities that choose to participate.  The Commission will be charged with the task of developing a specific plan of unified government which will be presented to the voters to approve in November 2012.

Additional information on this issue can be found on HCU’s Web site (www.hcu.lbschmidt.com).

Hardin County United (HCU) was established for the purpose of examining the various strategic goals which were established by the Hardin County Vision Project in 2010.  The intent of HCU is to prioritize the goals and to develop implementation strategies.  HCU’s leadership team includes Hardin County Judge/Executive Harry Berry who chairs the Steering Committee; Hardin County Chamber of Commerce President Brad Richardson, who chairs the Community Development Subcommittee; North Central Education Foundation President/CEO Al Rider, who chairs the Education Subcommittee; and Hardin Circuit Court Judge Ken Howard who chairs the Governance Subcommittee.  Luke Schmidt, President of L.B. Schmidt & Associates, LLC, provides management and consulting services to HCU.

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Hardin Co. Considers Unified Government WEKU-FM (Eastern Kentucky University Public Radio)

Article originally posted to WEKU-FM Web site: http://weku.fm/post/hardin-co-considers-unified-government

Hardin Circuit Judge Ken Howard told a roomful of elected officials Wednesday that Hardin County is in an age of prosperity and growth, which is the perfect time to consider looking at a unified local government. Without a crisis hanging over their heads or their backs against the wall, a more reasoned and careful examination of unification can be taken, he said. Howard, chairman of the Hardin County United Governance Subcommittee, partnered with consultant Luke Schmidt to walk elected officials through a comprehensive study Schmidt’s firm conducted that analyzed five unified governments in Georgia and Kentucky.