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2012

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Commercial flights closer to reality in Pike The Williamson (WV) Daily News

Commerical_flights_closer_to_reality_in_Pike0_1340684063

Wayne T. Rutherford

By JULIA ROBERTS GOAD

Staff Writer

PIKEVILLE, Ky. – The Pikeville/Pike County Airport Authority asked the Fiscal Court for its support to secure funds to recruit an airline to service commercial flights to the county.

Luke Schmidt, with L. B. Schmidt and Associates, a consulting firm, outlined the plan to bring commercial air service to the airport, located near Harmon’s Branch.

Judge Executive Wayne T. Rutherford gave a brief history of the airport.

He said the property was jointly purchased years ago by the City of Pikeville and the Fiscal Court, including the mineral rights to coal on the property. The money from the sale of the coal that was mined as part of construction at the site was was put into an account for development of the airport.

Then, Rutherford said, the “government withdrew from the project. We looked at three locations to put the airport, but the one we have now was determined to be the best one.”

The location the airport is now, near Harmon’s Branch, was purchased by the County, Rutherford said.

“Then the City became part of the Airport Authority again,” Rutherford said. “That airport is there because of the Pike County Fiscal Court.”

He said last year, the Airport Authority asked the Fiscal Court to fund a feasibility study, a request the Fiscal Court denied. Then, Rutherford said, the study was done with money from the Pikeville/Pike County Chamber of Commerce.

“We have worked to bring commercial air service here,” Rutherford said. “Then along the way we, as a body, were left out. We heard about commercial air service in the paper.”

“I have always been for the airport,” Rutherford said. “All of the magistrates have said they were in favor of this service in the county.”

Schmidt addressed the Fiscal Court at their regular meeting. L.B. Schmidt was hired by the City of Pikeville and the Eastern Kentucky Chamber of Commerce to study bringing commercial air service to Pike County.

“There have been many twists and turns along the way,” Schmidt said. “But there clearly is a market for scheduled air service here. It would service 13 counties, in Kentucky, Virginia and West Virginia.”

Schmidt said there were two goals needed to provide that service. The first is to recruit a regional airline that is linked to a major airline, and secondly to connect service in Pike County to a major hub such as Charlotte, N.C. or Atlanta.

Schmidt told the Court the best tool for recruiting an airline to Pike County would be a revenue guarantee package.

The concept is that some money is set aside in as the revenue guarantee fund.

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.

Schmidt said the Airport Authority has already secured a $750,000 from a Small Community Air Service to provide money for that revenue guarantee. He said the Authority, along with the Eastern Kentucky Chamber of Commerce and the City of Pikeville, is asking the Kentucky Legislature for $1 million in multi-county coal severance tax funds for that guarantee.

Schmidt asked the Pike County Fiscal to agree to support that request.

But the Court had reservations in asking for coal severance tax money for the revenue guarantee package.

“Pike County supplies 32 percent of the coal severance money in Kentucky,” Rutherford said. “This Court was not asked to be included in applying for the $750,000 grant, we have not been included even in news releases about the airport. I am disappointed that we are left and then brought back in when they need money.”

Rutherford said he has asked how much money the Airport Authority has, and found out that amount is $6 million.

District One Magistrate Jeff Anderson asked Schmidt why the Airport Authority was asking for $1 million in coal severance funds if they had $6 million.

Schmidt said there were restrictions on the money the Airport Authority has, although he was not certain what those restrictions were.

“I am not the person to ask,” Schmidt said. He said coal severance money was to be used for economic development, which the airport would be.

Members of the Fiscal Court said they had doubts to the feasibility of a regional airport. Schmidt used an example of a small airport in Manhattan, Kansas, to show how a revenue revenue guarantee package could work to establish air service in a small airport.

But PCFC Deputy Judge Executive John Doug Hayes pointed out that he Manhattan Kansas area has a much larger population, more college students and a more stable tax base.

“They don’t rely on coal,” Hayes said.

Magistrates on the Court said they felt there were more pressing matters coal severance funds could be used for. DIstrict Three Magistrate Leo Murphy said the county’s citizens have more basic needs than air service.

“I want air service too, but let them use their $6 million,” Murphy said. “We have needs in the county, There are people in my district without drinking water, we have to truck water to them. There are more needs for coal severance money.”

Another concern of the Court was that although Schmidt said there were two major airlines who are interested in providing service in Pike County, neither of those companies wanted their identities to be disclosed.

“I have great reservations,” District One Magistrate Jeff Anderson told Schmidt. “It is not transparent.” He said that the City and the Airport Authority know who those companies are, but that the Court did not. Schmidt explained that the City of Pikeville and the Airport Authority were his clients, and as such he could not disclose any confidential information that might hinder the project.

“It is a competitive issue,” he said. “If carriers see their name in the paper, it will blow our chance out of the water.”

But the PCFC was not convinced that an airport was a worthy project in such financially challenging times.

“My objection is that it isn’t a smart use of our tax dollars,” District Six Magistrate Chris Harris said. “If we supplement their income now, where will be in two years? If a was self-supporting, then an airline would want to come in.”

“The Airport board should come and talk to us,” District Two Magistrate “Chick” Johnson said. “They act like they are hiding something. We have never seen letters, or anything about this. They need to come to us; coal severance money is all we’ve got.”

In the end, Rutherford put a motion on the floor to support the request for $1 million in coal severance funds for the revenue guarantee, but none of the Magistrates seconded the motion, and it died without a vote. It will be carried over to the next Fiscal Court meeting.

Read more: The Williamson Daily News – Commercial flights closer to reality in Pike

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Unification back on the table The (Elizabethtown) News-Enterprise

HCU logo_3Article originally posted to The News-Enterpise Web site http://www.thenewsenterprise.com/content/unification-back-table

By Marty Finley
Sunday, June 3, 2012 at 1:36 am (Updated: June 3, 9:45 am)

The call for a unification review commission may have been quiet in recent months, but Hardin County United is ready to resume its push

After successfully lobbying for changes in state law regarding approval requirements for unified city/county government, HCU officials plan to reconnect with the seven local municipalities. Its goal is to secure support for forming a commission and appointing members to draft a unification plan and charter to be presented to voters by November 2014.

No dates have been scheduled, but Ken Howard, chairman of the HCU governance subcommittee, said he believes it will try to start scheduling meetings this month — beginning with Hardin Fiscal Court.

A unified local government in Kentucky requires participation of the county.

“It just makes logical sense to start with Fiscal Court,” Howard said.

Luke Schmidt, a consultant for HCU, said officials will approach the county and six cities with a short update on the merits of unification. The organization argues it would allow the county to leverage the size of its population to improve its profile at state and national levels, boosting its competitiveness in the global economy.

Howard and Schmidt also have argued a unified government would streamline government functions by eliminating duplicate  services.

Schmidt said HCU plans to update officials on changes in state law and how those would affect Hardin County.

“We want to make sure they understand the ramifications of it,” Schmidt said.

Several local officials, Hardin Fiscal Court in particular, were reluctant to form a commission when first approached by HCU because of ambiguity surrounding sovereignty of a city’s vote. HCU suspended its campaign to ensure a city would not be dissolved into a unified government if a majority of its residents voted against a unification charter.

County legislators, led by Rep. Jimmie Lee and Sen. Dennis Parrett, introduced new language to the Kentucky General Assembly, which moved through the general session with unanimous support.

Howard said the changes in state law put old concerns to rest but also provide Kentucky a better piece of legislation because the new law includes a safeguard that is fair to everyone. Howard said if unincorporated portions of the county reject unification during a referendum, the unification plan would fail to pass.

“I think that’s really important,” he said. “It can’t be pockets of support.”

Schmidt and Howard said HCU also plans to create an online presence to provide residents an avenue to share opinions on unification with elected officials.

If cities are open to the idea, HCU will propose ordinances to create a commission and appoint members. Inclusion in the commission does not lead to a merger, Schmidt said, because voters must decide on unification at the polls.

Howard said HCU hopes to have a commission in place to allow plenty of time for members to work on a plan before the 2014 election. A plan can take one to two years to put together, depending on the community.

“There is a large amount of work that needs to be done to put a plan together,” Schmidt said.

But Schmidt argued the commission’s formal deliberations are the only way to know what a unified structure in Hardin County would look like. During the first push for unification, residents asked a slew of questions, wondering how taxes would be structured and public safety impacted by a unified government.

“All good questions,” Schmidt said. “But we can’t answer them because we don’t have the commission.”

Radcliff Councilman Edward Palmer attended a recent HCU meeting and said he wants Radcliff to hold its own forums on unification to gather input. Radcliff is the only city in the county to formally opt out of the commission and Palmer said he did not want HCU to be able to use the city’s decision as firepower when arguing for unification.

Marty Finley can be reached at (270) 505-1762

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Airport could add commercial service WYMT-TV (Hazard)

 

The Pikeville-Pike County Regional Airport could soon be adding commercial airline service.

Officials say they are talking with two major airlines that could provide daily service at the airport.

The flights would serve as connecting flights to larger airport hubs in cities like Charlotte and Atlanta.

The airport would serve a 13 county area in the tri-state region.

Those included would consist of nine counties in Kentucky, three in Virginia, and one in West Virginia.

“You would get on the plane in Pikeville, make a relatively short flight to a major connecting hub, and then you get there and you can connect and go to virtually any place that you want to go,” Luke Schmidt said.

Officials hope to have something in place by the end of this year.

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Consultant: Pikeville could host regional airline Lexington Herald-Leader

Article originally posted to the Lexington Herald-Leader Web site http://www.kentucky.com/2012/05/26/2201975/consultant-pikeville-could-host.html#storylink=misearch
The Associated Press
Talks are ongoing with two regional airlines to provide daily service in and out of Pikeville-Pike County Regional Airport and flights could start in 2013, the Pikeville city manager and an aviation consultant said.
The consultant, Luke Schmidt, said the airlines could connect with commercial hubs in Charlotte, Cincinnati, Cleveland and Detroit.
Schmidt said a key milestone in the long-term effort to get commercial air service for Eastern Kentucky was the awarding of a federal $750,000 small community air service development grant to the Pikeville Airport last year. The grant is being administered by the U. S. Department of Transportation.
“This is a competitive grant,” Schmidt said. “Pikeville competed with 68 other airports, and Pikeville was the smallest of the 68.”
City Manager Donavan Blackburn told The Appalachian News-Express ( http://bit.ly/Js2XmU) that $100,000 of the grant will be used for marketing with the rest subsidizing an airline that provides service.
Blackburn said the airline is expected to operate at a loss for at least two years.
The 5,300-foot runway at Pikeville Airport can handle a turbo prop aircraft capable of carrying 19 to 37 passengers with a crew of three, Schmidt said. He said the region to be served would include 13 counties, of which nine are in eastern Kentucky, three are in southwest Virginia and one is in West Virginia.
This region is currently served by four commercial airports: Lexington, Huntington-Ashland, Charleston and Tri-Cities. Each of the 13 counties is closer to Pikeville Airport than to any of those airports, Schmidt said.
Schmidt said work is currently being done to complete a letter of commitment, which he anticipates would be submitted sometime this fall, with commercial air service becoming available in and out of Pikeville Airport nine to 12 months thereafter.
Blackburn said the airport does not have a fire station. The requirement for fire protection would be met by having a Pikeville City fire truck and crew of firefighters arrive at the airport one-half hour before a scheduled aircraft arrival and remain until one-half hour after the plane’s departure.
Schmidt and Blackburn said some modification might be required to the general aviation terminal that now serves the airport. They said that space might have to be provided for screening passengers before boarding.
Schmidt said the 13-county region that would be served by commercial air service in and out of Pikeville Airport has a population of 445,000, is a major energy region and has a total of $5 billion in bank deposits.

 

 

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Survey may attract commercial passenger service (Somerset) Commonwealth Journal

Article originally posted to (Somerset) Commonwealth Journal Web site

By KEN SHMIDHEISER, Managing Editor and CHRIS HARRIS, Staff Writer Commonwealth Journal

Somerset —

Has the time come for the Lake Cumberland region to become a hub in the nation’s air travel network? Somerset-Pulaski County Development Foundation hopes to answer that question now that commercial airline carriers are again expressing interest in locating passenger airline service in Somerset.
Yesterday, Martin Shearer, executive director of Somerset-Pulaski County Development Foundation, and Luke Schmidt, president of L.B. Schmidt & Associates, announced the launch of a regional survey of air travelers. The purpose of the survey will be to confirm both existing and future air travel patterns, and the demand for passenger airline service in the Somerset region.
During the past two years, community leaders have been quietly working to develop new airline service at the Lake Cumberland Regional Airport (also known by its three letter identification code, SME). This effort has included updating the market profile, establishing a target list of potential providers of commercial air service and recruiting the providers to Lake Cumberland Regional.
The survey is targeted towards 137,000 Facebook users across southcentral Kentucky. In addition to Pulaski County, input is being sought from residents of in Bell, Casey, Clay, Jackson, Knox, Laurel, Leslie, Lincoln, McCreary, Owsley, Rockcastle, Russell, Wayne and Whitley counties. The survey can be accessed by visiting:
This month two years ago as the economy continued to sour, Locair, a Florida-based airline carrier terminated passenger service at the airport here following the expiration of a million-dollar federal grant that made the flights possible.
“Business and industry leaders throughout the region have asked repeatedly when air service will be restored to SME,” Shearer noted.
Today, with the stock market at its highest levels in years, and the number of people seeking unemployment near a four-year low, Somerset-Pulaski County Development Foundation feels the time has come to respond.
The airport’s attractive $1 million terminal is now staffed and being used by the private aviation community as attested by a jet parked on the tarmac outside the Kit Cowan Road terminal yesterday.
“The Foundation recognizes the important role that airline service can play in not only providing a valuable service for our residents, but also in helping to attract new jobs to the region,” Shearer said.
As part of its efforts to restore air service at Lake Cumberland Regional, the Foundation retained Louisville-based consulting firm L.B. Schmidt & Associates, LLC to assist in the effort. The consulting firm updated the market profile, which recognizes that the airport will serve 15 Kentucky counties with a combined population of 384,000 people. The firm has also identified several potential providers of air service and has met with each of these companies to introduce the Somerset market. The focus now turns to a regional survey of air travelers to fully understand where people from this region travel to and how often.
“Today, we are announcing the launch of our survey which is open to any and all business and industry representatives, professionals and individuals who travel by air for any reason—business or personal,” said Luke B. Schmidt, consultant to the Foundation. “We have designed a short, easy to complete survey which will help us to understand just where people from this region fly to and how often they fly. And, in order to help drive participation, we are using social media, specifically Facebook, in an effort to reach the largest number of potential users of SME airport.”
“The survey will help us to better understand the market and the demand for airline service in this region,” said Schmidt. “More importantly, a robust level of participation in the survey will help to match this market to the right provider.” The survey period will continue through February 24, 2012.
Somerset-Pulaski County Development Foundation serves as the economic development arm for the Somerset and Pulaski County, Kentucky region. The Foundation facilitates the development of new jobs by recruiting world-class firms to the community and also assists existing business and industry through the expansion of existing facilities.

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Hardin Co. Merger Proponents Say New Bill Should Ease Residents’ Concerns WFPL-FM (Louisville NPR)

by Gabe Bullard on January 23, 2012

Proponents of a merged government in Hardin County hope to put the issue on the ballot this year.

Advocates say combining Elizabethtown, Vine Grove and Radcliffe with Hardin County’s unincorporated areas and other cities would be a boon to economic development. The governments can merge under the same state law that allowed Lexington and Fayette County to consolidate in 1974. (The law that allowed the Louisville-Jefferson County merger applies only to first class cities.)

But, to assuage any concerns from residents, merger proponents are championing legislation in Frankfort that would allow individual cities to opt out of the merger if a majority of residents oppose consolidation. If that happens, the cities would seemingly either fall under the governance of an entity they opposed or exist without a county. Before the public can vote on the matter, officials will have to figure out how an independent city would interact with the merged government that surrounds it.

“At this point, it’s kind of hard to say exactly,” says Hardin County United spokesman Luke Schmidt. “For example, how would emergency medical services be provided? Today, county government provides emergency medical service throughout the county.”

Schmidt says the merger agreement should spell out any questions about independent cities.

“We’d like to have it on the ballot this November,” he says. “This being a presidential election, we’ll have a high turnout of voters to begin with and we think that’s important. But we want to do the plan the right way. If that requires more time and we can’t make it, we’ll push it to the next election.”

He expects the document to be finalized in time to have it on the ballot in November, but says there’s no official deadline, and the vote could happen in a following year.

 

 

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House passes HB 190 in a unanimous vote The (Elizabethtown) News-Enterprise

 

Article originally posted to The News-Enterprise Web site http://www.thenewsenterprise.com/content/house-passes-hb-190-unanimous-vote

House passes HB 190 in a unanimous vote

Unification clarification awaits approval from state Senate

By Sarah Bennett
Thursday, January 19, 2012 at 3:42 pm (Updated: January 19, 10:33 pm)

The Kentucky House of Representatives passed House Bill 190 Wednesday in a unanimous 94-0 vote.

The bill’s primary goal was to clarify the language of the existing unification law, said Luke Schmidt, consultant for Hardin County United.

Introduced by Rep. Jimmie Lee, D-Elizabethtown, and co-sponsored by Rep. Tim Moore, R-Elizabethtown, HB 190 ensures a city will be exempt from joining unified government if the majority of its residents vote against unification.

Rep. Darryl Owens, D-Louisville, and Rep. Arnold Simpson, D-Covington, also co-sponsored the bill, according to a news release.

Schmidt said this was a problem identified when HCU began presentations to county residents last fall. The organization has been adamant a city’s majority vote would be respected, he said.

The bill now moves to the state Senate, and Lee said Thursday the senate will hear its own bills first before it reviews those passed by the House.

“I don’t think we should start to worry if they don’t begin discussing it immediately,” he said.

Lee said it’s notable the bill passed unanimously in the House, adding it appears there is enough interest across the state in exploring the unification tool.

Schmidt said the 94-0 vote in the House is a “terrific margin,” which he sees as indicative of bipartisan support in the state legislature.

Sarah Bennett can be reached at (270) 505-1750 or sbennett@thenewsenterprise.com.

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KY House of Representatives passes House Bill 190 WAVE-TV (Louisville)

Kentucky House of Representatives passes House Bill 190
Submitted by Sarah Eisenmenger
Thursday, January 19th, 2012, 2:12pm

ELIZABETHTOWN, KY (WAVE) – Hardin County United (HCU) today recognized the action taken by the Kentucky House of Representatives in passing House Bill 190 by a vote of 94 – 0.  HB 190 was introduced by State Representative Jimmie Lee (D-Elizabethtown) and is co-sponsored by State Representatives Tim Moore (R-Elizabethtown), Darryl Owens (D-Louisville), and Arnold Simpson (D-Covington).

“I am pleased to report to the citizens of Hardin County who have been following the issue of unified government that their concerns about how an individual city’s citizens’ vote on a unified government plan will be treated have been heard loud and clear by the House of Representative,” said State Representative Jimmie Lee.  “Voters can rest assured that HB 190 clearly states that if the majority of a city’s voters vote no on a plan for unified government, then that city will remain free-standing, even if other jurisdictions should vote yes for the plan,” said Lee.

“Passage of HB 190 by the House of Representatives represents another major step forward in HCU’s initiative to bring a plan on unified government to the citizens of Hardin County,” said Luke B. Schmidt, consultant to HCU.  “HCU is following up on its commitment to address this issue,” said Schmidt.

“HCU appreciates the leadership that our Hardin County legislative delegation is bringing to this issue,” said Hardin Circuit Court Judge Ken Howard, Chair of HCU’s Governance Subcommittee.  “We look forward to turning our attention to the Kentucky State Senate in moving this issue through to final passage” said Howard.

 

 

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Legislation Introduced in the KY General Assembly (Press Release)

HCU logo_3

Legislation Introduced in the Kentucky General Assembly to Assure the Integrity of a Community’s Vote on Unified Government

January 6, 2012 

House Bill 190 and Senate Bill 78 Seek to Assure Communities that the Votes of their Citizens will Count When it Comes to Determining Final Participation in a Unified Government Plan

Elizabethtown, Kentucky (January 6, 2012) – Hardin County United (HCU) today announced that legislation has been filed in both the Kentucky State House of Representatives and the Kentucky State Senate. The companion bills – House Bill 190, introduced by State Representative Jimmie Lee (D-Elizabethtown) and State Representative Tim Moore (R-Elizabethtown), and, Senate Bill 78, introduced by Senator Dennis Parrett (D-Elizabethtown) – are designed to affirm the intent of the majority of voters participating in a community-wide referendum on unified government.

HCU launched its unified government initiative on August 4, 2011. The process, as specified under existing state law, first requires county government along with city governments that wish to participate in the process to pass an ordinance which creates the Unification Review Commission. The Commission, once established, will include between 20 and 40 citizens appointed by the various participating governments. It is the Commission’s responsibility to develop a plan for unified government which will include county government and the participating municipal governments. Once the plan has been completed, it is to be submitted to the voters in the participating jurisdictions for review and approval.

As HCU presented its findings to the community on the potential benefits of unified government, concern was expressed by several elected officials about how an individual community’s vote on unified government would be handled in relation to the votes in the other jurisdictions. In other words, and, hypothetically speaking, if voters in the county and say five of the six Hardin County cities voted to unify, what would happen to the city who’s voters voted not to unify?

“Hardin County United has been clear from the beginning that the intent of the majority of a community’s voters must be respected,” said Hardin Circuit Court Judge Ken Howard, Chairperson of HCU’s Governance Subcommittee. “If a majority of voters in a given city vote no on unification, even though the other jurisdictions vote yes on unification, then it is our view that the community that voted no should be allowed to remain a free-standing community.”

“Existing state law is not as clear as it needs to be on this issue,” said State Representative Jimmie Lee. “The intent of our bill is to clear up any ambiguity that exists in order to provide voters in a given community complete assurance that the majority view on unified government as expressed by the voters in that community will be upheld.”

House Bill 190 and Senate Bill 78 were introduced during the first week of the Regular Session which convened in Frankfort on January 3, 2012. “This is an important next step in HCU’s initiative to bring a plan of unified government to the voters of Hardin County and its cities,” said Luke B. Schmidt, consultant to HCU. “Many good questions have been raised by citizens during our 25+ community presentations on this issue. Most of these questions can’t be answered until the Unification Review Commission is appointed and it drafts its plan, which will be submitted to the voters for their careful review and consideration.”

“I have consulted with local elected officials and believe that new legislation is necessary to clarify existing statutes.  With the passage of this bill, any city council that chooses to approve the establishment of a Unification Review Commission can do so with the confidence that the voters in their respective community will have the final say as to whether they participate in a unified government,” said Representative Tim Moore.  “City Councils will have the authority to allow participation.  And, if the unification process is initiated by their locally elected officials, the majority of voters in a given community will determine the outcome for each community.”

“I look forward to raising this important issue with my colleagues in the Senate,” said State Senator Dennis Parrett. “Voters voting on a plan of unified government need to feel confident that their community’s wishes on the issue will be respected – passage of Senate Bill 78 will make this happen.”

HCU believes that there are four primary benefits to unifying local government in Hardin County, including:

1. The attainment of a new level of clout as Kentucky’s third largest community that will assist the entire community in the creation of new jobs,

2. 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.,

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).

“We view this as positive legislation,” said Schmidt. “This legislation impacts only those communities in Kentucky that are considering unified government and there is no fiscal impact on the Commonwealth – meaning no new taxes will be required in order to implement this legislation.”

More information on HCU’s unified government initiative can be found by visiting 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.