BY BILL MARDIS, Editor Emeritus and KEN SHMIDHEISER, Managing Editor
Commonwealth Journal
Somerset —
Article was originally posted to Lexington Herald-Leader Web site http://www.kentucky.com/2013/04/04/2586569/merger-of-somerset-and-pulaski.html
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.
by Bill Mardis Commonwealth Journal
Somerset —
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.
“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.
“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.”
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.
Pike airport recieves $1M grant
Staff Writer
PIKEVILLE, Ky. — The Pikeville/Pike County Airport came a step closer to commercial air service with the announcement of $1 million in grants from the Kentucky Department for Local Government from multi-county coal severance tax money.
The grant will be awarded once an airline is selected to provide commercial air service to the airport (PBX).
In addition, a Federal Small Aviation Grant granted the Pikeville City Commission received in 2011 was granted an extension of the $750,000 grant that was received for commercial air service last year, bringing the total of funds for the airport to $1.75 million.
Two commercial airlines have expressed interest in serving PBX, although both companies have remained anonymous.
Recruiting an airline to provide commercial service is one of the purpose of the grant. One of the methods of recruiting an airline is a revenue stream package. An airline doing business in the county would set a financial goal for each month. If the company falls short, money from the revenue guarantee package would be used to bring the amount of money the airline makes up to the monthly goal. The money would be given to the airline on a monthly basis so the company would not incur financial losses during the first two years of operation.
Luke Schmidt of LB Schmidt Associates, a consulting company which has been working with the City of Pikeville and the East Kentucky Chamber of Commerce on the airport project, said the revenue stream package is essential to an airline.
“It is expensive to for an airline to start a new route,” Schmidt said. “They have to invest in new planes, employees, equipment. If they lose too much money too soon, they aren’t going to stay. We need to make it profitable sooner rather than later.”
The grant was obtained after garnering support from the Floyd and Pike Counties Fiscal Courts.
However, the support of the Pike Court was not unanimous vote. Two of the six magistrates on the Court were not in favor of asking for coal severance tax money for the airport. Both Chris Harris and Jeff Anderson said they felt the airport would not be profitable. After initially refusing to throw his support behind the request for coal severance funds, Judge Executive Wayne T. Rutherford did vote in favor of the request.
Millions of dollars have already been used in the development of PBX, Pikeville City Manage Donovan Blackburn said, including $3,383,971 to complete the parallel taxiway alongside the airport’s primary runway, $330,513 in improvements and repairs to the primary runway, 679,000 for a new nine-aircraft T-hangar and $109,304 for the installation of a new Automated Weather Observation System.
Jared Arnette, President of the East Kentucky Chamber of Commerce, said the airport is the result of groups working together.
“This is the best example I have ever seen of teamwork,” Arnette said. “Our businesses spoke in one voice. The airport is part of the vision of economic development, they see value of a commercial airport. It is a milestone we have reached. In a time when people are concerned with energy, it is important to step up and say we are creating opportunity.”
Friday, 11 02, 2012
Kerri Richardson
Terry Sebastian
502-564-2611
Multi-county coal severance tax grant to support new airline service at the Pikeville – Pike County Regional Airport
PIKEVILLE, Ky. – Governor Steve Beshear and the Kentucky Department for Local Government today announced a pledge of a $1 million multi-county coal severance tax grant to the city of Pikeville. The grant will be used to support the development of new airline service at the Pikeville – Pike County Regional Airport (PBX).
Pikeville’s elected officials, along with the Pikeville – Pike County Airport Board and the Southeast Kentucky Chamber of Commerce have been spearheading efforts to develop scheduled passenger airline service at the Pikeville field for more than two years. The grant will be awarded once an airline is selected to provide the public service. The proceeds of the grant will be matched with a $750,000 federal grant that the city of Pikeville received last year, and will be used as part of the project’s revenue guarantee program to assist a carrier in reaching sustainability during the start-up phase of service.
“So far, two airlines have expressed interest in serving PBX,” said Gov. Beshear. “Local officials have demonstrated strong leadership on this project, and the Commonwealth is pleased to partner with the community and airport officials to support ongoing efforts to develop new airline service.”
The grant will play an important role in the final stage of recruiting an airline to PBX. 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.
“This is great news for our community,” said Sen. Ray Jones of Pikeville. “This grant puts us further down the road toward our goal of establishing scheduled airline service at PBX.”
“I want to thank Governor Beshear for his support of this important community goal,” said Rep. Leslie Combs of Pikeville. “We’re getting closer to our goal of new airline service to a major connecting hub which will truly connect Pikeville and Pike County to the global economy.”
“Our city appreciates the support of Governor Beshear and the Commonwealth,” said Pikeville Mayor Pro-Tem Jimmy Carter. “New airline service at PBX will help us to create new jobs in the coalfield.”
“The Commonwealth has been a wonderful partner at PBX ever since the field first opened in 1983,” said Bill Hickman, Chairman of the Pikeville – Pike County Airport Board. “This is yet another confirmation of this partnership as the airport continues to grow and serve the community.”
“New airline service at PBX will make it much easier for our business and professional community to compete in the global economy,” said Jared Arnett, president and CEO of the Southeast Kentucky Chamber of Commerce. “This grant helps us get closer to our goal of securing service.”
“This project enjoys widespread support,” said Luke B. Schmidt, President, L.B. Schmidt & Associates, LLC and consultant to the project’s leadership group. “Airline service will be a real game-changer for this community. I want to also thank Pike County Judge/Executive Wayne T. Rutherford and Floyd County Judge-Executive R.D. “Doc” Marshall for their support of our grant application.”
###
Reporter: Paige Quiggins
PIKEVILLE, Ky. (WYMT) – It is a project that has been in the works for quite a while and on Friday, officials in the city of Pikeville announced they have been able to secure funding to bring commercial air service to eastern Kentucky.
“If it’s ever going to happen, this is going to be the time,” said Jared Arnett, President/CEO of the Southeast Kentucky Chamber of Commerce.
Officials said that time has come.
“It’s just not conducive to the global economy to not have ticketed service right here locally,” said Arnett.
Arnett and many others said it was the time for officials to announce $1 million in multi-county coal severance money has been set aside to help bring commercial air service to the region.
City officials said it is an economic boost that will help industrial parks within the region. He said when they are told the closest airports are in Lexington or Louisville, it changed the game for some.
“When these site developers say ‘we want to come look at it’ and when we tell them you have to fly in and drive three hours, we really don’t even get into negotiation stage,” said Arnett.
“If we could have the opportunity where they could fly right in, see our sites, it would make a tremendous difference.”
Mayor Pro-Tem Jimmy Carter of the City of Pikeville said it will affect more than a dozen surrounding counties.
“This definitely makes us the hub of eastern Kentucky and with commercial air service, it solidifies the whole deal,” said Carter.
The project’s consultant said carriers must agree before the project fully takes off.
“We are in a great position to go and make our final push on recruiting with the two airlines who have expressed interest in this market so our intent to be now to get in front of them as quickly as we can,” said Luke Schmidt.
Schmidt said they could know that answer by March of next year and if the two considering commercial carriers commit by then, it will likely take six months to a year from then for the services to begin.
Officials said this million is in addition to a $750,000 federal grant which has already been set aside for the project.
Article originally posted to the Lexington Herald-Leader Web site http://www.kentucky.com/2012/08/24/2309254/sensible-ruling-on-liquor-sales.html#storylink=cpy