Funds will be used to build out road and utility infrastructure at SPEDA Commerce Park

The Somerset-Pulaski Economic Development Authority (SPEDA) has announced it will receive $1.347 million in state grant funding for SPEDA Commerce Park, which will be used to build utility and road infrastructure throughout the 142-acre development.

This is the third such grant SPEDA has received through the Kentucky Product Development Initiative (KPDI). In 2024, the organization received $500,000 to help build a new intersection at the park entrance, and in 2023, $1.58 million to develop park sites to meet build-ready standards. SPEDA Commerce Park was one of six site and building development projects across the state to receive approval in the initiative’s latest round.

Formerly known as the Garner property in the Pine Hill and Barnesburg Road area, SPEDA Commerce Park is a state-certified, build-ready development featuring eight parcels. A build-ready site enables buyers to bypass much of the red tape typically required when establishing a new location, as it addresses needs and concerns before they arise. It also allows for quick decision-making in site selection.

SPEDA Commerce Park’s first tenant, the Kentucky National Guard, announced its intentions in 2020 to build a new regional readiness center and field maintenance shop on 18 acres. Since then, SPEDA has sold 11 acres of the park to a private developer who intends to build a large-scale commercial and retail complex facing Ky. 80, and is marketing its remaining sites.

This new round of funding — which will be complemented by a 17.5 percent match, making the project total $1.632 million — will ensure that all contractual obligations are fulfilled for the Kentucky National Guard project in addition to building out all roads and utilities through the park.

Significant road improvements in the Ky. 461 and Ky. 80 area, including expanded four-lane road access and a cloverleaf intersection, as well as SPEDA Commerce Park’s close proximity to Valley Oak Commerce Complex, make this an attractive area for manufacturing, retail, industrial and commercial development, SPEDA President and CEO Chris Girdler said.

“The fact that state economic development leaders have seen fit to award funding to SPEDA Commerce Park in every round of the KPDI grant program during the last three years speaks volumes about the park’s potential as a build-ready site,” Girdler said. “This will be the first industrial park built in our community in three decades, and we are so grateful for the state’s support as we make eastern Pulaski County the epicenter of industrial development in the Lake Cumberland region.”

KPDI provides funding for local communities to enhance investment in site and building upgrades, supporting future, well-paying jobs and economic growth across Kentucky.

In addition to SPEDA Commerce Park, Gov. Andy Beshear announced investment in five other projects that will enhance Kentucky’s build-ready, job-ready site development efforts, including projects in Boyle, Hopkins, Laurel, Montgomery and Taylor counties. More than $7 million in state funding was approved in this latest round to spur future investment and job creation.

Currently, $35 million is available for projects entering the due diligence stage in the latest round of KPDI. The projects have been reviewed by a third-party, independent site selection consultant, which evaluated, scored and submitted project recommendations to the Cabinet for Economic Development. The cabinet will consider each project and complete the final stage of due diligence for a recommendation of funding approval by the Kentucky Economic Development Finance Authority in the coming months. Projects across 25 counties are moving on to the due diligence stage, and the projects announced today are the first approvals.

The two rounds of the previous iteration of the initiative – the KPDI Program of 2022 – concluded earlier this year, with 90 projects statewide approved for over $85 million in funding. Including local contributions, these projects are generating over $512 million in investments in Kentucky’s sites and buildings portfolio.

The initiative is a collaboration between the Cabinet for Economic Development and the Kentucky Association for Economic Development (KAED). It provides state support for potential upgrades to sites and buildings across the commonwealth to ensure Kentucky remains a prime location for growing companies across all industry sectors.

“The Kentucky Product Development Initiative is a transformational tool in our state’s economic development strategy,” Terri Bradshaw, president and CEO of KAED. “This latest round of funding represents a powerful investment in the future of our communities – enhancing our competitiveness, strengthening local economies, and accelerating job creation across the commonwealth. We are proud to partner with the Kentucky Cabinet for Economic Development in supporting these communities and we sincerely thank our sponsors, Gov. Beshear and the General Assembly for their continued commitment to economic development across Kentucky.”

To date, Gov. Beshear and the Kentucky General Assembly have approved up to $170 million in funding for the initiative.

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 the pilot PDI program, which was established in 2019 and provided nearly $7 million in state funding for 20 site development projects statewide. Companies have announced economic development projects at 10 of the locations funded during the pilot PDI program, projecting $4 billion of capital investment and 3,500 new, full-time jobs.

For more information on KPDI, visit kpdi.ky.gov. To follow SPEDA Commerce Park’s progress, follow SPEDA on Facebook and LinkedIn, or visit somersetkyleads.com.