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The following Letter to the Editor was originally published in the (Somerset) Commonwealth Journal on August 24, 2013: Dear Editor: I read with interest the article in last Sunday’s Commonwealth Journal concerning the ongoing unified government study in Pulaski County. I was particularly interested in comments made by Somerset Mayor Eddie Girdler that seemed to imply that as the project consultant that I have been harassing him and the City. Nothing could be further from the truth. Let me begin by first stating that I have nothing but the highest regard for Mayor Girdler. Somerset is a progressive city with lots of good things going for it. I fully respect the fact that the City Council earlier this summer passed a resolution indicating that the City does not wish to consider unifying with any of its neighbors, no matter what the potential benefits of such unification might bring to the City and its residents. As project consultant, I made it clear early on that one of the most important parts of the study is to learn more about how each of the existing government jurisdictions operates. To that end, I have now met with the mayors of each city in the county, with the exception of Mayor Girdler, plus Pulaski County Judge/Executive Barty Bullock. I now have a better understanding of how each community is organized, a little bit of the history of each and most importantly, some of the things which are very important to each community, again with the exception of Somerset. When I started this part of the study, I sent a letter to each mayor, including Mayor Girdler, requesting an appointment. I followed this up with a telephone call to each. Mayor Girdler never returned any of my calls. I stopped by his office on two occasions when I was in Somerset, each time asking his assistant for just “five minutes” to speak with the mayor, with the hope of scheduling an appointment that if for no other reason would allow him the opportunity to share with me why he is so opposed to this study and the opportunity to learn more about how unified government works, and, to see if there are any benefits to be gained for the community (the study has not been completed, so we don’t know yet if there will be any benefits). While he was out of town during one of these times, his assistant refused to announce my request to the mayor the other time. I did receive a one paragraph letter from the mayor, in which he indicated that he would not meet with me, nor would he allow any city staff member to meet with me. He did indicate in his letter that some of the information that I was interested in obtaining would be available through an Open Records request. Consequently, having tried every other approach to meet with the mayor, I did file an Open Records request of him (since I never got past his assistant’s desk, I was unaware of the procedure of submitting such requests to the city clerk). In closing, throughout my career I have worked with elected officials on all levels – state, federal and local – going back to 1980. I have worked with local officials – successfully – all over the United States in communities like Hennepin County, Minnesota (Minneapolis), Philadelphia, Campbellsville, Ky., etc., on a variety of issues. While we might not always agree, in every instance the relationships have been productive, professional and mutually respectful. I have no doubt that this will be the case with Mayor Girdler when our paths do cross in the future. In closing, I appreciate the opportunities that I have had thus far to learn more about how Greater Pulaski County works. My invitation to Mayor Girdler stands: I would welcome the opportunity to begin an open and candid discussion of all of these issues with him. Sincerely, Luke B. Schmidt L.B. Schmidt & Associates, LLC 6316 Innisbrook Drive Prospect, Ky. 40059

Article originally posted to the (Somerset) Commonwealth Journal’s web site http://somerset-kentucky.com/newslive/x1664882430/-Unified-government-group-wants-Somerset-s-organizational-financial-data

Group’s consultant filed open records request with Girdler

by Bill Mardis Commonwealth Journal The Commonwealth Journal Sun Aug 11, 2013, 10:00 AM EDT

Somerset —

The consultant for an ongoing study about the feasibility of a united city-county government in Pulaski County has mailed an open-records request to Somerset Mayor Eddie Girdler asking for information about the organization of the city’s government and its financial data, tax structure and revenue sources.

Luke B. Schmidt, president of L.B. Schmidt and Associates, says he wants a snapshot of Somerset’s government. Somerset and Ferguson have opted out of the unification study and Mayor Girdler has refused to meet with Schmidt to discuss the plan.

“I expect to get the information,” said Schmidt. “He (Girdler) is bound by law to provide that.”

As for the study, Schmidt said he is still in the process of assembling data. He said he has met with officials of other cities in the county and with county government officials. “They all have been very gracious and helpful,” he said.

Will it be possible to form a united city-county government in Pulaski County if Somerset, the largest city, refuses to participate?

“If Somerset says ‘no,’ it obviously will be more difficult to put together a plan,” Schmidt said. He suggested that if he were a citizen of Somerset he would want to know why, because it would be a commission that would come up with a form of government and voters in the city and county who would eventually decide if a united government is what they want, Schmidt responded.

Somerset has rejected a unified government and refused to participate in financing the $35,000 study. From the onset of the study, Girdler and Somerset City Council have strongly opposed the idea of merged governments and directed the city’s legal department to get whatever help is necessary to protect the integrity of its boundaries.

The $35,000 cost of the study was initially suggested to be paid with a third of the money from Somerset, a third from Pulaski County government and a third to be paid by Somerset-Pulaski County United members. Pulaski Fiscal Court greeted the request more warmly and granted $11,667 to pay its share of the cost of the study. Two thirds of the cost apparently will be paid with contributions from members of Somerset-Pulaski County United (SPCU).

SPCU, chaired by developer Brook Ping and composed of more than 80 of the county’s movers and shakers, has made it clear from the start it is not advocating merged governments, only a study to determine the feasibility.

The completed study, if favorable toward a unified city-county government, would be presented to local governmental bodies. Eubank, because its corporate limits straddles the Pulaski-Lincoln county line, would not be eligible to be a part of a merged city-county government, according to state law.

Upon receipt of the completed study, according to state law, 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. With Somerset and Ferguson not participating, the answer is not clear as to how the process will unfold.

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. Any type of merged governments must be approved by voters of Pulaski County.

Schmidt say he hopes to have the study completed by the end of September.

– See more at: http://somerset-kentucky.com/newslive/x1664882430/-Unified-government-group-wants-Somerset-s-organizational-financial-data#sthash.NohNiTvl.dpuf

Article was originally posted to the (Carson City) Nevada Appeal Web site http://www.nevadaappeal.com/news/opinion/7263758-113/carson-schmidt-board-consolidation

John Barrette: Consultant bullish on Carson’s consolidation with Ormsby Co.

It was on April Fool’s Day more than four decades ago, in 1969, that Ormsby County disappeared and a consolidated Carson City government took the helm here.

Nobody was foolin’ around, and we live with the results to this day.

Not exactly news. But what if you could get a look through fresh eyes, so to speak? Well, here are some views from Luke Schmidt of L.B. Schmidt & Associates, a consultant first mentioned a week ago in this space as having visited Carson City to study the historic change.

Schmidt likes consolidation generally and Carson City’s in particular. However, he still studies carefully each place where he checks it for unconsolidated government units considering the change. He scours history and the results objectively for pluses and minuses, checking currently for clients in his home state of Kentucky.

One thing that stuck out for him after his trip was his time with former Mayor Jim Robertson, elected to lead the city in 1963. Schmidt said Robertson, as well as others, told him the outcome of consolidation was everything they’d expected. Schmidt also asked Robertson if there was anything that could or should have been done differently.

“‘At the time,’ Schmidt quoted Robertson as saying, ‘we thought it was the right way to go, and that’s the way I would look at it now.’”

Another thing that stood out for Schmidt was the number of members on the governing board in Carson City. He referred to the five-member Board of Supervisors as a council.

“It’s a relatively small council, in comparison to some others,” he said, giving as an example Athens in Georgia. He said Athens has more than 10 seats on its consolidated governing board. But, he added, Athens has a population of 115,000, and the board doesn’t oversee the considerable open-space area that Carson City’s does.

“You could probably argue that a couple of bears don’t need a council member,” joked the consultant from suburban Louisville.

By the way, though the merger plan in the 1960s garnered widespread support — it was initially approved statewide with a vote of 73,913 to 42,541 on Nov. 5, 1968 — there was opposition.

Former Carson City Mayor Al Autrand, who served in 1961-63, was reported by the Nevada Appeal in the 1960s to have attacked the plan and the many public officials supporting it for “trying to push this thing down people’s throats.”

Because they succeeded, you can watch the five-member governing board in action Thursday beginning at 8:30 a.m. in the Sierra Room at the city’s Community Center. Among items up for discussion is a proposal to begin a waste, fraud and abuse government whistle-blower hotline program.

John Barrette covers Carson City government and business. He can be reached at jbarrette@nevadaappeal.com.

Article originally posted to Commonwealth Journal Web site http://somerset-kentucky.com/local/x1374700982/Study-for-unified-government-is-now-underway

By CHRIS HARRIS, CJ Staff Writer The Commonwealth Journal Fri May 24, 2013, 06:38 PM EDT

Somerset —

The next step toward a potential merged city-county government is now in progress, as work has begun on the key feasibility study that will determine whether or not citizens could benefit from such a development.

The organization responsible for the move to look at a unified government, Somerset-Pulaski County United (SPCU), announced Friday that efforts to conduct the study have started and are ongoing.

“We’re glad to get this study underway as we believe that we will learn a lot about how our local government jurisdictions function today,” said Brook Ping, SPCU chairman. “At the same time, we want to learn more about unified government – how it operates – and see if there are any benefits to introducing this concept to Pulaski County.”

The study is being funded by a grant from Pulaski County Fiscal Court and by the members of SPCU. It’s expected to take about four months to complete.

In April, SPCU introduced its plan to conduct a study that would attempt to measure the possible benefits of combing Pulaski County Government with the individual city governments: Somerset, Burnside, or any such municipality that would opt in.

If the study turned up positive results, the county’s citizens would have the chance to vote on whether or not to go through with the unified government proposal.

Under the plan, 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.

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.

“The members of SPCU want to make it very clear: we are not endorsing unified government at this time,” said Ping. “We need to learn more about it first so that we will feel comfortable in the end with whatever recommendations that we might bring to the community.”

The plan met with different reactions from some of the key figures involved. When SPCU approached the Somerset City Council to ask for assistance funding the study — expected to cost about $35,000 — they were rebuffed by Mayor Eddie Girdler.

The Pulaski County Fiscal Court, however — headed up by Judge-Executive Barty Bullock — agreed to chip in the requested $11,667 during a late April meeting and proved more receptive to SPCU’s message.

“This study will provide invaluable information and data to the entire community,” said Bullock. “We want to learn more about this to see if unified government makes sense for the community.”

The study will include detailed interviews with elected officials and key staff in each of the county’s incorporated cities, along with those in county government.

“This study will not merge local governments. The study is merely one of many steps that the community may elect to take towards unified government,” said Luke Schmidt, consultant to SPCU from the firm L.B. Schmidt & Associates, LLC. “In the end, only the voters can decide if the local government jurisdictions should merge, and they will do so only if a formal plan (charter) of unified government is developed by an officially sanctioned Unified Government Commission and presents its plan to the voters.

“The study simply provides all parties with the information that will be needed to make informed decisions,” he added.

SPCU’s members represent all segments of the community: agriculture, business and industry, education, elected officials, health care, industry, law enforcement and public safety, professionals, religion and transportation.

Schmidt will be contacting local officials soon in order to start the examination of the local government jurisdictions, according to a statement released Friday by SPCU.

“We look forward to sharing all of the findings with the community as soon as the study has been completed,” said Ping.

– See more at: http://somerset-kentucky.com/local/x1374700982/Study-for-unified-government-is-now-underway#sthash.v3tlne6a.dpuf

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.

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.

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.

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.

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.

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

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.