Earlier this week, RecoverCare announced that it was relocating its corporate headquarters to Louisville, KY. Yesterday, the Kentucky Economic Development Finance Authority announced that it was approving economic incentives for 13 other companies for various projects in the Louisville area. Seven of the newly approved projects would involve the opening of new facilities in Louisville, while the other six would offer incentives to companies that already have facilities in Louisville that they are considering expanding.
If all 13 companies proceed with their plans, the Louisville area could expect to see its employment rate increase by 658 new jobs, and by more than $26.5 million in new payroll funds. The companies that already operate in Louisville currently employ 956 Louisville-area residents. The entire cost of all 13 projects amounts to an investment of around $79.2 million.
"This is the largest number of projects we've brought to the state for incentives in many years," commented Mayor Jerry Abramson. "It shows that, even in this down economy, Louisville is working diligently to attract new jobs and investments."
The companies that were offered incentives include Loews Hotels, Inc., Signature HealthCARE, TRAX Mechanical Systems, Bio Pharma Logistics, RPD Manufacturing, White Energy Technology Riverport, Liberty Processing & Services Innovation, Kentuckiana Curb Company Inc., MESA Foods, Reynolds Foil, Fellon-McCord & Associates, BJK Industries, and CSS Distribution Company.
Of these companies, the company that was offered the most in incentives was Signature HealthCARE, a Palm Beach, Florida-based nursing home operator. Signature is the largest nursing home operator in the United States. It was offered up to $4 million in tax incentives over 10 years. Upon hearing of the approval of the incentive package, Signature president E. Joseph Steier remarked, "The team was extremely impressed with the collaboration between both the State of Kentucky and the Louisville metro area leaders in showcasing Louisville as one of the best places to do business anywhere in America. The city will provide a great central location with one of the best quality of life environments for families, rich university partnerships, and an amazing talent pool."
The Kentucky Business Incentives program was passed by the Kentucky legislature during the 2009 Special Session of the Kentucky General Assembly. The legislation is described in more detail at www.thinkkentucky.com. The incentives are in the form of tax relief, and are directed at new and expanding businesses, in the hope that more businesses will relocate to Kentucky, begin operations in Kentucky, or expand current operations. Legislators hope that these business expansions will reduce unemployment among Kentuckians and provide income that can be used to stimulate the Kentucky economy.