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Woodford County moves toward buying Yokohama plant after $2 million state award; bond sale eyed
Summary
County officials said the state awarded a $2 million KPDI grant to apply to an $8.5 million purchase of the Yokohama manufacturing facility, accelerating the acquisition timeline (KPDI funds must be spent by June 30). The county is planning bonding and an interlocal agreement, with a bond sale targeted for April and an interlocal vote planned March 24.
Woodford County officials told the fiscal court they have been awarded $2 million in KPDI funding to apply toward the possible purchase of the vacant Yokohama facility and that they are moving quickly to complete acquisition steps and financing.
"We applied for the maximum allocation for the county, which is $2 million, and this year we were awarded those funds," said Lucas Wit, the county's economic development consultant. He told the court the grant requires the county to complete the building acquisition before reimbursement and that the KPDI funds must be used by June 30.
County leadership said the total purchase price for the facility is $8.5 million and that the EDA and county have completed environmental and other due diligence. Officials said the KPDI timing accelerated the purchase schedule and narrowed the previously risk-free review window.
The county also cited a $100,000 KU opportunity grant to help offset due diligence expenses and match obligations. Officials said the city of Versailles and the fiscal court have negotiated a draft intergovernmental partnership agreement and that the city council will consider a related resolution next Tuesday while the fiscal court aims to take up an interlocal agreement for bonding on March 24.
Ruth Webb of First Kentucky Securities, who is assisting with public finance for the project, said her office was completing due diligence with an optimistic timeline for an April 15 bond sale if all steps proceed as planned.
Magistrates asked about revenue implications: economic development staff noted occupational tax revenues tied to the Yokohama workforce fell to about $128,000 in 2025 as the plant reduced operations. Officials said if the county does not control the property and it becomes a distribution warehouse or other low-tax use, occupational tax receipts could decline further; by contrast, acquiring the plant gives the county a chance to recruit a high-wage employer. County staff estimated carrying costs while the county holds the building could be roughly $300,000 a year, though they said the $2 million KPDI reimbursement could be used to offset short-term carrying costs.
No final purchase vote was recorded at the meeting. The court approved moving forward with the interlocal and bonding paperwork and set the interlocal voting timeline for March 24 to enable bonding if members approve that step.
