HOPKINSVILLE, KY (CHRISTIAN COUNTY NOW) – Following a public hearing and special called meeting, the Hopkinsville City Council moved forward with approving revenue bonds to Ascend Elements Inc. to the amount of $565 million.
At the Sept. 4 city council meeting, an initial resolution passed that established intent to provide the Ascend Elements Inc. development with $320 million in revenue bonds for continued construction and infrastructure costs. The newly proposed ordinance at the Nov. 19 meeting raised the amount of revenue bonds significantly to $565 million.
Representatives from Ascend were present during the recent meeting to answer questions regarding the bonds. Roger Lin, Vice President and Government Relations said that the company has received a total of $480 million in government grants to fund the construction of Apex 1, and all the awards and bonds are designated to go to the Hopkinsville facility. He also confirmed that they have gone through a recent string of layoffs, with around 200 current employees.
Ahead of the second vote to approve the bonds during a special called city council meeting on Nov. 21, a public hearing was held. There were no public comments from citizens and no additional discussion from city councilmembers about the revenue bonds. The ordinance passed the second vote with councilmember Chuck Crabtree the only vote against.
Impact on the city
City chief financial officer Melissa Clayton previously clarified that the city is not liable for these bonds with Ascend being responsible to repay the obligation in a worst-case scenario.
When the initial resolution passed, public finance attorney, Mark Franklin, who joined the council meeting through zoom, said this investment would not put the city at financial risk. “This is something the city, as an act of its own good will, will do to help a corporate citizen save money,” said Franklin. “The city has no financial risk and will not be subject to payment.”
Mark Fern with Ascend Elements previously gave updates about the construction of the chemical plant during the Southwestern Kentucky Economic Development Council meeting on Oct. 28. As the site manager for the massive facility, Fern shared that they have made significant and visible progress since breaking ground about a year ago.
He stated that a good portion of the exterior construction on Apex 1 is complete, with crews starting to focus more on internal design and construction. The current footprint allows them ample space to expand in the future. It was revealed during the city council meeting that the company is now anticipating a delay of their estimated completion date by a few months, in the hopes of being operational by the end of 2025.