Fiscal court approves Braidy bond financing

Published 10:33 am Wednesday, June 14, 2017

Resolution allows company to issue over $1 billion in bonds

GREENUP — The Greenup County Fiscal Court took action on Tuesday morning to adopt a resolution supporting Braidy Industries with the issuance of bonds. The Greenup County Fiscal Court will use its authority to finance bonds to assist Braidy with bond surety, should the company need to issue bonds to fund any portion of construction of their new aluminum production facility in South Shore.

The text of the inducement resolution approved “industrial revenue bond financing for Braidy Industries… agreeing to issue industrial revenue bonds in one or more series at the appropriate time or times,” in an amount, “up to $1,400,000,000” for a “term of 20 years,” with the “company to pay all reasonable costs.”

The $1.3 billion plant will be located in South Shore, on 370 acres adjacent to the Ohio River, and will produce milled aluminum for use in the automotive, airline, and defense industries. The project will create around 1,000 construction jobs during the building of the plant and employ approximately 550 individuals in full-time jobs upon completion.

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In old business, the commissioners moved to open bids on single axle dump trucks, and to approve a bid of $107,000 for a new truck, with salt spreader and other attachments. They also moved to approve payment of $1,501.65 to Collins Engineering for repairs to the drill tower for the Greenup Fire Department, approve setting tax rates at the same level as last year for the Greenup County Health Department, and to award bids on tire, gravel, blacktop and gas, and other items. Bulk Plants was awarded the contract for oil and gas, Haneke Drilling for drilling, MTW for tires, Consolidated Pipe the contract for plastic pipes, KY Underground for metal pipe, Mountain Enterprises awarded asphalt, Cargill for salt, and Mountain Materials gravel.

The fiscal court had already paid their portion of tax funds back to the East Park industrial park, but took action on Tuesday to codify the practice, passing an amendment to return any tax revenue received from property owners at the park to the Northeast Kentucky Regional Industrial Authority for a period of five years.

In new business, the commissioners moved to approve expenses for required workshops and seminars, accept the jail report, E911 report, and alternative sentencing report, approve payment of $5,106.50 to Harp Enterprises for memory card and lithium battery maintenance on voting machines, to hire summer help in the office and various departments, accept changes to county roads, and approve a lease for a tri-axle truck, at a cost of $137,904, and to add that to the package for 2018.

In his jail report, jailer Mike Worthington updated the commissioners and judge on the progress of improvements to the jail, noting that work on the roof should be completed today.

Buford Hurley, in the E911 report, noted that the organization had concerns about changes Governor Matt Bevin was making to the 911 board, and that he would keep the court updated on any impacts to local programs.

Richard Berry told the court that alternative sentencing had saved the county $6,960 in jail and other costs over the last month, and that seven individuals had completed the program.

The fiscal court went into executive session, to discuss litigation, before returning to approve the financial report and hear the judge’s report. Commissioners approved Judge Executive Bobby Carpenter’s request for payment of $30,000 as a Greenup’s 20 percent match for a KYOVA transportation study and preliminary design on three different transportation projects.

They also heard from Carpenter on another project that the judge executive is working on for the Wurtland area. Though Carpenter said that he can’t go public with details on the project yet, as it has not yet been finalized, he is hopeful that it will move forward. If it does, Carpenter said, it could result in the creation of up to 135 new jobs in the county.