Kentucky Gov. Matt Bevin with Louisville skyline (Composite photo/William Alden Skyline Photo via Flickr.com, Creative Commons License)
FRANKFORT, KY—Five Kentucky-based banks have launched an investment fund to support public-private partnership projects throughout Kentucky. The institutions launching the $125 million Western Kentucky Infrastructure Fund are among the largest community banks in the state:
- Field & Main Bank, Inc.
- The Paducah Bank & Trust Co.
- Security Bank & Trust Co.
- Stock Yards Bank & Trust Co.
- Traditional Bank Inc.
The Western Kentucky Infrastructure Fund is an innovative, private fund established to provide debt financing to private-sector firms participating in public infrastructure projects at both the state and local levels. The Fund is managed by Jake Schirmer, manager of Commonwealth Infrastructure Fund, a similar fund serving Central Kentucky.
According to Schirmer, “WKIF will provide debt financing to both the public and private sector for public-private partnerships. Additionally, it will fund infrastructure projects in Western Kentucky where many of these may be direct with the municipality or with a private developer. Furthermore, the fund will look for transactions that are part of social infrastructure such as hospitals, charter schools, substance abuse recovery centers and opportunity zone projects, to name a few.”
The Kentucky General Assembly passed and Gov. Matt Bevin signed Kentucky's P3 legislation in 2016, giving the Commonwealth one of the broadest and most comprehensive P3 laws in the country. The new law established a process that allows local governments to partner with private firms to finance and build capital projects that might not otherwise be possible.
“For communities in the western part of the state, the Western Kentucky Infrastructure Fund will play a vital role in expanding infrastructure projects,” says Mardie Herndon, president/COO of The Paducah Bank & Trust Co. ”Having community banks supporting their communities will be crucial in our efforts to rebuild our infrastructure.”
The Fund will provide debt financing critically needed at both the state and local levels for projects such as the repair and replacement of roads and bridges, water and sewer systems, and social infrastructure projects such as student housing, treatment centers and charter schools.
In P3 projects, revenue generated from the projects themselves is generally the primary source of funding used to repay the upfront capital loaned to construct the public infrastructure.
Addressing infrastructure needs across the nation and throughout Kentucky has become a policy imperative. The leaders of these five banks recognize that P3s provide a solution and committed capital for projects that will improve services for Kentuckians, provide better access to facilities, expand and accelerate infrastructure development and create jobs in the Commonwealth.
“Kentucky's community banks are the first in the nation to launch funds that will help finance public-private infrastructure projects through local banks,” says William Alverson, CEO, Traditional Bank.
“We recognize the immense value for our state in pooling our resources to help move these critical P3 projects forward,”
“This is a great way for us to partner with some of our member banks throughout the state. We are part of the first fund, and as a bank with its roots in Kentucky, we want to continue to support Kentucky as it looks to replace its infrastructure,” says Ja Hillebrand, CEO of Stock Yards Bank & Trust Co.
“There is a need for the private sector to work with the public as a creative vehicle to rebuild Kentucky. Loans made by the Western Kentucky Infrastructure Fund will spur economic development and create jobs. I fully support it,” says Dale Sights, president of Field & Main Bank.
“We have a strong presence in western Kentucky, and we see the Western Kentucky Infrastructure Fund as a way to continue to deepen our roots there,” says Barry “Boo” McIntosh, CEO of Security Bank of Tennessee. ”I believe the private sector and public sector working together will be a catalyst for future development. As a combined group, we have taken the same creative approach toward financing these large projects.”
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Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
