Transpark Appeal Update

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Transpark Appeal Update  Posted: February 4, 2002
An electronic version of a Motion To Supplement Record in the pending appeal of the Warren County Transpark Notes and Bonds is attached.

The electronic version of the appeal does not have the four deeds that were attached to the original motion, nor does it have the one-page FAA Analysis by Mr. Kiernan.

The County Debt Commission will meet in Room 386 of the Capitol Annex Building on February 25, 2002, at 10 a.m. to consider the case after the remand from Franklin Circuit Court. Each member of the Commission has already been served with a copy of the Appellant's Exceptions to the Referee's Decision, and have been instructed by the Court to consider those exceptions in making their final decision.

On February 25, there will be a brief opportunity for each side to make arguments, and then a decision will be rendered by the County Debt Commission.


















Comes the Appellant, Joey Roberts, and moves the County Debt Commission to admit into the record and to consider the attached documentation pertaining to the request by Warren County, Kentucky for approval of proposed notes and bonds to finance the construction of an airport and industrial park in Warren County, Kentucky. In support of this motion, Appellant states:

1. This matter is on remand from the Franklin Circuit Court in the case of Roberts v. County Debt Commission et al., Civ. No. 01-CI-01540, which remanded the appeal of the final determination of the County Debt Commission with instructions to consider the Appellants' Exceptions To Referee's Findings and Recommendations in rendering a decision on whether to uphold the decision of the State Local Debt Officer approving the issuance of the bonds and notes.

2. Subsequent to the Referee hearing held in this matter, Appellant has become aware of a review of this project conducted by an individual employed by the Federal Aviation Administration, the agency whose approval of the relocation of the Bowling Green Airport is an essential component of the proposed industrial park and airport project.

3. The circumstances under which the memorandum, authored by Larry Kiernan of the Federal Aviation Administration on June 5, 2001, became available are documented in the attached Affidavit of Leslie

Elizabeth Barras.


4. The Kiernan memorandum contains several observations that are of relevance to the determination under review by the County Debt Commission. Kiernan concluded, based on "the financial statistics included in studies that have been done for the proposed airport[,]" that "[t]he costs appear to have been grossly underestimated and the source of funds appear to be optimistic."

With respect to the development costs for the airport, the Kiernan memorandum notes that

the business plan indicates that the Bowling Green airport

would cost about $28.5 million to develop (Page 5-Summary Table). A plausible estimate for Bowling Green airport would be $100 million to $150 million.


(Emphasis added).


With respect to the source of local funds for debt service, the Kiernan memorandum notes that:


The source of local funds is largely based on land sales that

are expected to generate $24.6 million from the industrial

park and $17.4 million from sale of the existing airport.

There is no evidence that a buyer has been identified, so this

appears to be a very risky source of funds.


The project is intended to attract jobs and strengthen the

local economy, but it appears that it could have the opposite effect, generating huge debt and little revenue.


Mr. Kiernan concluded his assessment with the recommendation that the sponsoring agency "conduct an unbiased risk assessment study in order to obtain an independent and well-informed opinion regarding project feasibility."

5. Appellant tenders the Kiernan Memorandum for consideration by the County Debt Commission as further evidence in support of Appellant's position, reflected in the Exceptions To Referee's Findings and Recommendations, that the assumptions concerning costs and revenues in the proposed financing plan approved by the State Local Debt Officer, are speculative and overly optimistic and that the request for approval should not be been granted with respect to the issuance of bonds and notes by Warren County. The memorandum is a matter of public record, was prepared by a federal official with expertise in this area and in the normal course of that agency's business, and has a direct bearing on the case and on the validity of the assumptions underlying a financial plan that Appellant had challenged as being unrealistic.

6. Appellant also moves for introduction into the record of copies of deeds between an agent of the Intermodal Transportation Authority and individuals by which the project proponents have acquired lands within the project area. In the Post-Hearing Brief, Appellant argued that the financing plan substantially underestimated the costs of land acquisition and that the lack of flexibility in the plan and unreasonable assumptions concerning land costs could adversely affect the project viability.

As is reflected in the attached deeds, the actual cost of the land acquisition appears, as Appellant's witness anticipated, much higher than that assumed by the business plan. In four deeds recorded in November, 2001 between landowners and the "South Central Kentucky Regional Development Authority," the entity holding project property, the cost has been averaging $12,000 to 13,000 per acre rather than the projected $5,000 per acre.

For these reasons, Appellant respectfully requests that these documents be admitted into the record for consideration on review of the State Local Debt Officer determination.





Respectfully submitted,



Tom FitzGerald

P.O. Box 1070

Frankfort, KY 40602

(502) 875-2428

(502) 875-2845 fax


Counsel for Appellant

Joey Roberts


Certificate Of Service


I hereby certify that a true and correct copy of the foregoing was served this 4th day of February, 2002, upon:


Lonnie Campbell, Commission Secretary

Department for Local Government

1024 Capital Center Drive, Suite 340

Frankfort, Kentucky 40601-8204


Hon. Paul Patton, Chairman

County Debt Commission

Office of the Governor

State Capitol

Frankfort, Kentucky 40601


Hon. Michael Buchanon

429 East 10th Street

Bowling Green, Kentucky 42101


Warren County Fiscal Court Clerk

Warren County Courthouse

429 East 10th Street

Bowling Green, Kentucky 42101


Dan Cherry, President

2325 Airway Court, Suite C

P.O. Box 20001

Bowling Green, Kentucky 42102-6001


Michael Caudill, Esq.

Warren County Attorney

923 College Street

Bowling Green, Kentucky 42101


Hon. J. Patrick Abell

Hearing Officer

Tourism Development Cabinet

500 Mero Street, Capital Plaza Tower, Room 1209

Frankfort, KY 40601


Frank Chuppe, Esq.,

PNC Plaza,

500 West Jefferson Street,

Louisville, KY 40202-2898


Charles E. English, Sr., Esq.

David Anderson, Esq

Whayne C. Priest, Jr., Esq.

1101 College Street,

P.O. Box 770

Bowling Green, KY 42102-0770,


Stephen Catron, Esq.,

P.O. Box 1220,

918 State Street

Bowling Green, KY 42102-1220


Hon. Stephen Henry

100 State Capitol

700 Capitol Avenue

Frankfort, Kentucky 40601


John K. Hamilton, Treasurer

183 State Capitol Annex West Wing

Frankfort, Kentucky 40601


Ed Hatchett, Auditor

144 State Capitol Annex

Frankfort, Kentucky 40601


John Y. Brown III, Secretary of State

152 State Capitol

700 Capitol Avenue

Frankfort, Kentucky 40601


A.B. Chandler, Attorney General

118 State Capitol

700 Capitol Avenue

Frankfort, Kentucky 40601


James C. Codell III, Commissioner

Transportation Cabinet

501 High Street

Frankfort, Kentucky 40622


T. Kevin Flanery, Secretary

Room 383 Capitol Annex

Frankfort Kentucky 40601


Ms. Sarah Jane Schaaf, Secretary

Revenue Cabinet

200 Fair Oaks Lane

Frankfort, Kentucky 40601


Chris Gorman, Esq.

101 S. Fifth Street

Louisville, KY 40202




Tom FitzGerald




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