In Kentucky, current economic momentum is laying the groundwork for future growth.
The past four-plus years have marked the best period for economic success in Kentucky’s history, with more than 1,000 private-sector new-location and expansion projects totaling over $35 billion in announced investments, creating more than 59,000 jobs.
That success is no accident. It is the result of Gov. Andy Beshear’s leadership and the commonwealth’s extensive list of business-friendly elements, including its ideal location, access to resources, skilled workforce and speed to market initiatives.
The emphasis on building and site development throughout the state has led to continuous investment in communities across Kentucky, further laying the foundation for economic growth and opportunity. As Kentucky’s economy continues to grow, so does the need for businesses to locate and expand throughout the commonwealth, bringing quality jobs, investment and opportunities with them.
One of the most important factors for decision-makers and site selectors is to identify states capable of moving companies from the project stage to operational as quickly and efficiently as possible.
Leadership in Kentucky has taken an aggressive approach to meeting this growing speed-to-market demand, matching companies’ sense of urgency and expediting project timelines in a way many other states have not. This advantage has opened the doors to even more investment and job creation.
“In Kentucky, we know how important it is for your company to get up and running quickly,” Gov. Beshear said. “That is why we are working closely with existing businesses and prospective companies to ensure they have every advantage to complete construction, begin hiring and start turning a profit as fast as possible. We’re growing together here in the commonwealth and we’re not wasting any time getting where we need to be.”
Kentucky’s speed-to-market and site selection initiatives are spearheaded by its Build-Ready sites and the Kentucky Product Development Initiative (KPDI) program, which are paving the way for future development.
Through the KPDI program, the state enables companies to quickly locate in Kentucky while mitigating the risks and delays normally associated with the construction process. This unique program was launched in partnership between the Kentucky Cabinet for Economic Development and the Kentucky Association for Economic Development (KAED) and provides matching funds for local communities to further invest in site and building upgrades to support future economic growth and bring well-paying jobs to Kentuckians.
During the 2022 legislative session, Gov. Beshear and the Kentucky General Assembly approved $100 million in funding for the initiative. More than 70 applications for funding were received after the initiative went live from local government and economic development organizations throughout the state looking to capitalize on these resources to secure and upgrade sites with the needed infrastructure
to make them development ready.
During the initial round of the program, 82 projects were approved for over $62 million in support, which including local contributions has generated over $426 million toward Kentucky’s sites and buildings portfolio.
Gov. Beshear has since announced that over $51 million in state support has been approved for 36 projects throughout the state. Including local contributions, these projects are generating over $380 million in investments in Kentucky’s sites and buildings portfolio.
And there’s more to come.
During this year’s regular legislative session, the General Assembly and Gov. Andy Beshear approved an additional $70 million in funding for the KPDI Program of 2024 to ensure the commonwealth furthers its recent economic success and continues to provide prospective companies with high-quality sites and buildings to encourage future growth and job creation.
Site and building development projects are first evaluated by an independent consultant based upon all facets a prospective company would consider, from workforce availability, access to all infrastructure and detailed information on costs associated with development. In turn, these projects will generate increased economic development opportunities and job creation for Kentucky residents.
The initiative furthers the efforts of a pilot program, which provided nearly $7 million in state funding for 20 site development projects across the state. Companies have announced economic development projects at 10 of the locations funded during the pilot program, projecting $4 billion of capital investment and 3,500 new, full-time jobs.
Kentucky is Build Ready
The KPDI program has helped with transformative site and infrastructure improvement projects, which include the development of Build-Ready-certified sites.
A great example of how both KPDI and Build-Ready sites can work hand-in-hand was on display with one of the state’s most recent Build-Ready site additions. In August of this year, Gov. Beshear announced the largest Build-Ready site in Kentucky with a new regional development in Henderson County. The site includes a building pad with over 1.1 million square feet of available space.
The $1.4 million projects spearheaded by the Henderson County Fiscal Court and the West Kentucky Regional Industrial Development Authority Inc., was approved for $700,000 in KPDI funding.
With a Build-Ready site, much of the work – aside from construction – has already been completed. That includes controlling the land to be developed, completing archaeological, environmental and geotechnical studies, constructing a building pad, finishing preliminary design work, obtaining approved site plan permits and putting necessary infrastructure in place. On a Build-Ready site, construction can begin immediately.
To be Build-Ready-certified, a site must include a pad ready to accommodate a 50,000-square-foot building with the ability to expand to at least 100,000 square feet, and with utilities extending to the site. Applicants – usually a city, county or economic development group – must have previously filed the necessary permits, as well as preliminary building plans, cost estimates and schedule projections.
The commonwealth now has roughly 26 available Build-Ready sites, with numerous additional locations across the state currently working toward certification.
To date, 12 former Build-Ready-certified sites – including tracts located in Barren, Butler, Christian, Graves, Hart, Laurel and Pulaski counties and five sites in Warren County – have been selected by companies for new location projects, allowing companies to bring their operations online in a cost-efficient manner while creating jobs for Kentuckians.
Adding to the state’s site selection resources is SelectKentucky.com, a comprehensive tool that allows site selectors and company decision makers to find the perfect location for any project.
Kentucky’s commitment to building speed-to-market allows companies to locate, expand and grow in the commonwealth, and lays the foundation for a future of continued economic success and high-wage job opportunities throughout the state.
Kentucky’s future is being built today.
For more information on Kentucky’s KPDI program, visit ced.ky.gov/kpdi. To learn more about Build-Ready sites and locations, visit ced.ky.gov/BuildReady.
