Labor and Economic Development Committee

Agenda

1. Call to Order

   Vice Chair Engel called the meeting to order at 3:05 p.m.

2. Roll Call

   Vice Chair Engel introduced the committee members and non-committee members present. A quorum was established. Note: All committee members and non-committee members present attended virtually, except for Vice Chair Engel, Council Member Bowens, Committee Member Kramer, and Committee Member Ackerson, who attended in Chambers.

3. Pending Legislation
4. 1. AN ORDINANCE OF THE LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT (THE “ISSUER”) AUTHORIZING THE ISSUANCE OF BONDS IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $119,000,000 AND DENOMINATED LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT INDUSTRIAL BUILDING REVENUE BONDS (BOYD REAL PROPERTY, LLC PROJECT), SERIES 2022 (THE “BONDS”); APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY OF (i) A TRUST INDENTURE (THE “INDENTURE”), BETWEEN THE ISSUER AND U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, AS TRUSTEE (THE “TRUSTEE”) SECURING THE BONDS, (ii) A LEASE AGREEMENT, BY AND BETWEEN THE ISSUER AND BOYD REAL PROPERTY, LLC (THE “LESSEE”), (iii) A BOND PURCHASE AGREEMENT, BY AND AMONG THE ISSUER, THE LESSEE AND BOYD COMPANY (THE “BOND PURCHASER”), (iv) AN IN-LIEU OF TAX PAYMENTS AGREEMENT, BY AND BETWEEN THE ISSUER AND THE LESSEE, (v) A HOME OFFICE PAYMENTS AGREEMENT, BY AND AMONG THE ISSUER, THE TRUSTEE, THE LESSEE AND THE BOND PURCHASER, AND (vi) ANY AND ALL OTHER RELATED DOCUMENTS; AND THE TAKING OF OTHER RELATED ACTION (AS AMENDED).
   Ordinance
   Action: untabled

   A motion was made by Committee Member Purvis, seconded by Committee Member Holton Stewart, that this Resolution be untabled. The following spoke to this item: - Vice Chair Engel - Jeff Mosley, Hollenbach-Oakely - Laura Ferguson, Jefferson County Attorney's Office ("JCAO") - Committee Member Purvis - Monty Boyd, The Boyd Company Inc. - Committee Member Kramer The following was discussed: - Hollenbach-Oakley, JCAO, Chair Dorsey and Council Member Bowens worked collaboratively to draft and finalize a Memorandum of Understanding ("MOU") document - The MOU was briefly reviewed - The MOU has been agreed to by all parties but has not yet been executed - JCAO made a recommendation to amend the Ordinance to add a WHEREAS clause to include the MOU as an exhibit - Questions were asked regarding the number of jobs this agreement would provide to the community -- this agreement would allow for approximately 1,000 new employees - The highlights of the presentation originally presented to the committee meeting on May 31, 2022 were briefly reviewed - Questions were asked regarding whether the number of 1,000 potential employees for hire came from the Boyd company only or the Boyd Company as well as the industrial tenants -- the 1,000 potential employees for hire is based on the square footage of the new building's construction - Questions were asked regarding whether the Boyd Company has any recruitment goals such as the number of minority, female, and disabled employees that the Boyd Company plans to hire -- this information was forwarded to the committee members -- the Boyd Company will meet the requirements of minority, female, and disabled employees and plan to hire any additional employees that meet the job qualifications - The Boyd Company will work with Louisville Forward to host job fairs to find employees within the community - Questions were asked regarding whether or not the Boyd Company has worked with the Louisville Urban League or Goodwill -- the Boyd Company has worked with these companies in the past but has not worked with them recently - Questions were asked regarding whether groundbreaking has taken place on the new building's construction -- the Boyd Company plans to start the groundbreaking process on the first phase of this project once all approvals for the project have been completed -- the Boyd Company has put out bids for Phase I of the project - Questions were asked for a better explanation of the phases and timelines necessary to complete this project -- Phase I is to open the new entrance off of Southwestern Parkway as well as add two new buildings; Phase II is to continue the connector road through the property from the entrance and add more buildings for an approximate total of 6-7 new buildings -- the timeline for this project is approximately 6-7 years - Questions were asked regarding the Boyd Company's involvement in giving back to the community in regards to a corporate/social responsibility policy -- the Boyd Company budgets a certain percentage each year for contributions for education and non-profit organizations for human beings -- the Boyd Company does work with Metro United Way - Questions were asked regarding whether the Boyd Company could provide the company's contribution history to the committee -- the Boyd Company can provide this information to the committee - Clarification was asked regarding whether the MOU being added as an attachment would make that attachment part of the Ordinance -- there are attachments that go with the legislative record, and then there are documents specifically referenced as exhibit's to the Ordinance

5. 2. A RESOLUTION APPROVING THE GRANTING OF LOCAL INCENTIVES TO DISTILLED SPIRITS EPICENTER, LLC AND ANY SUBSEQUENT ASSIGNEES OR APPROVED AFFILIATES THEREOF PURSUANT TO KRS CHAPTER 154, SUBCHAPTER 32.
   Resolution
   Action: recommended for approval Passed

   A motion was made by Committee Member Kramer, seconded by Committee Member Purvis, that this Resolution be recommended for approval. The following spoke to this item: - Vice Chair Engel - Sara Bowman, Louisville Forward The following was discussed: - Distilled Spirits Epicenter is seeking approval for incentives that were originally approved in 2017 for their expansion project - Distilled Spirits Epicenter is an educational distillery located at 801 S. 8th Street in Council District 6 - In 2012 Distilled Spirits Epicenter began operation and now have a need to build a new building on their beverage campus to expand the company's spirits blending and bottling operations - This new building will be located at the corner of S. 7th Street and Cawthon Street - Distilled Spirits Epicenter held their groundbreaking in Fall of 2021 and started the projects construction on the new building June 2022 -- Distilled Spirits Epicenter is moving forward with their $2M investment project - Distilled Spirits Epicenter planned to hire 20 full-time employees and now have approximately 30 full-time employees -- the job positions within Distilled Spirits Epicenter pay an average hourly wage of approximately $20.00 an hour - Questions were asked regarding what an educational distillery is -- this is a fully operated distillery, they do not create their own brands -- this business solely serves the spirit industry and those who might want to get involved in the spirit industry, other examples were provided The motion carried by a voice vote and the Resolution was sent to the Consent Calendar.

6. Adjournment

   Without objection, Vice Chair Engel adjourned the meeting at 3:34 p.m.

7. Note: Items sent to the Consent Calendar or Old Business will be heard before the full Council at the Metro Council meeting on June 23, 2022.
8. 1. AN ORDINANCE OF THE LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT (THE “ISSUER”) AUTHORIZING THE ISSUANCE OF BONDS IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $119,000,000 AND DENOMINATED LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT INDUSTRIAL BUILDING REVENUE BONDS (BOYD REAL PROPERTY, LLC PROJECT), SERIES 2022 (THE “BONDS”); APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY OF (i) A TRUST INDENTURE (THE “INDENTURE”), BETWEEN THE ISSUER AND U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, AS TRUSTEE (THE “TRUSTEE”) SECURING THE BONDS, (ii) A LEASE AGREEMENT, BY AND BETWEEN THE ISSUER AND BOYD REAL PROPERTY, LLC (THE “LESSEE”), (iii) A BOND PURCHASE AGREEMENT, BY AND AMONG THE ISSUER, THE LESSEE AND BOYD COMPANY (THE “BOND PURCHASER”), (iv) AN IN-LIEU OF TAX PAYMENTS AGREEMENT, BY AND BETWEEN THE ISSUER AND THE LESSEE, (v) A HOME OFFICE PAYMENTS AGREEMENT, BY AND AMONG THE ISSUER, THE TRUSTEE, THE LESSEE AND THE BOND PURCHASER, AND (vi) ANY AND ALL OTHER RELATED DOCUMENTS; AND THE TAKING OF OTHER RELATED ACTION (AS AMENDED).
   Ordinance
   Action: recommended for approval Passed

   The motion to approve carried by the following vote and the amended Ordinance was sent to Old Business:

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11. Clerk(s)

    Olivia Bennett, Assistant Clerk Sonya Harward, Clerk

12. Support Staff

    Laura Ferguson, Jefferson County Attorney's Office Jason Fowler, Jefferson County Attorney's Office

13. Non-Committee Member(s)

    Council Member Angela Bowens (D-1)

14. 1. AN ORDINANCE OF THE LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT (THE “ISSUER”) AUTHORIZING THE ISSUANCE OF BONDS IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $119,000,000 AND DENOMINATED LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT INDUSTRIAL BUILDING REVENUE BONDS (BOYD REAL PROPERTY, LLC PROJECT), SERIES 2022 (THE “BONDS”); APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY OF (i) A TRUST INDENTURE (THE “INDENTURE”), BETWEEN THE ISSUER AND U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, AS TRUSTEE (THE “TRUSTEE”) SECURING THE BONDS, (ii) A LEASE AGREEMENT, BY AND BETWEEN THE ISSUER AND BOYD REAL PROPERTY, LLC (THE “LESSEE”), (iii) A BOND PURCHASE AGREEMENT, BY AND AMONG THE ISSUER, THE LESSEE AND BOYD COMPANY (THE “BOND PURCHASER”), (iv) AN IN-LIEU OF TAX PAYMENTS AGREEMENT, BY AND BETWEEN THE ISSUER AND THE LESSEE, (v) A HOME OFFICE PAYMENTS AGREEMENT, BY AND AMONG THE ISSUER, THE TRUSTEE, THE LESSEE AND THE BOND PURCHASER, AND (vi) ANY AND ALL OTHER RELATED DOCUMENTS; AND THE TAKING OF OTHER RELATED ACTION (AS AMENDED).
    Ordinance
    Action: amended Passed

    A motion was made by Committee Member Kramer, seconded by Committee Member Mulvihill, that this Ordinance be amended as shown in the attached document titled: "O-180-22 V.2 CAM 061422 Revenue Bond for Boyd Co.pdf". Committee Member Ackerson spoke to the proposed amendment. The following was discussed: - Questions were asked regarding whether it would be easier to include language into the Ordinance that states that the MOU is incorporated by reference -- this is an option and examples were provided. The motion to amend carried by a voice vote.