EKB News

DURING A SPECIAL CALLED MEETING OF THE PIKEVILLE CITY COMMISSION FRIDAY AFTERNOON, THE CITY COMMISSIONERS APPROVE BY UNANIMOUS VOTE A LEASE AGREEMENT WITH THE EAST KENTUCKY EXPO CENTER.  UNDER THE AGREEMENT…STILL TO BE REVIEWED BY THE PIKEVILLE CITY MANAGER AND CITY ATTORNEY…PIKEVILLE WOULD TAKE OVER THE OPERATION OF THE TROUBLED EXPO CENTER.  ALTHOUGH THE DETAILED TERMS OF THE LEASE AGREEMENT WERE NOT DISCLOSED, IT WAS ANNOUNCED THAT THE NEXT STEP IN THE PROCESS WOULD BE THE PRESENTATION OF THE CITY’S ACTION TO THE EAST KENTUCKY EXPO CENTER CORPORATION AT THEIR NEXT BOARD MEETING SCHEDULED FOR FEBRUARY 14.  ACCORDING TO CITY MANAGER DONOVAN BLACKBURN, THE CITY FULLY UNDERSTOOD THE DIFFICULTY OF MAKING THE EXPO CENTER A SELF-SUSTAINING OPERATION WITH THE LAGGING ECONOMY AND THE DIFFICULTY OF A CONTINUOUS STREAM OF PRODUCTIONS AND OTHER REVENUE PRODUCING EVENTS.  BLACKBURN WENT ON TO SAY, ALTHOUGH GOVERNMENTAL ENTITIES SUCH AS MUNICIPALITIES USUALLY SHY AWAY FROM ASSUMING RESPONSIBILITY FOR A DEFICIT SITUATION, THE IMPORTANCE OF THE EXPO CENTER OUTWEIGHED THAT CONCERN.  IT WAS POINTED OUT THE TREMENDOUS EFFECT THE FACILITY HAD,  NOT ONLY ON THE CITY, BUT, ALSO ON NEIGHBORING COUNTIES, AND EVEN THE STATES OF VIRGINIA AND WEST VIRGINIA.  PIKEVILLE WAS DESCRIBED AS THE “HUB” OF A CONCENTRATION OF 250,000 PEOPLE…ALL OF WHICH ARE POTENTIAL CUSTOMERS OF THE CENTER.  EACH COMMISSIONER IN TURN VOICED THEIR STRONG SUPPORT OF THE PROPOSED TAKE OVER OF THE EXPO CENTER, AND A VOTE SUPPORTED THE FIRST STEPS TO BE TAKEN FOR PIKEVILLE BECOMING THE OPERATIONAL CEO OF THE CENTER.  THE CITY ALSO PROPOSED TO ASSUME $600,000 IN EXPO CENTER DEBT…$200,000 OF WHICH IS OWED TO THE CITY FOR VARIOUS MUNICIPAL SERVICES, INCLUDING, UTILITIES, FIRE AND POLICE.  PRIOR TO THE COMMISSION’S ACTION ON THE EXPO CENTER, THEY LISTENED AS DON WALLEN REPORTED ON THE 2009-2010 FISCAL YEAR, WHICH SHOWED TREMENDOUS GROWTH WITHIN THE CITY AND SURPLUSES IN ASSETS, WITH A CUSHION FUND THAT WOULD SUSTAIN THE CITY FOR EIGHT MONTHS, WITH THREE MONTHS USUSALLY CONSIDERED SUFFICIENT FOR CITY OPERATION.