By GAGE WILSON
for Glasgow News 1
The Glasgow City Council is set to take a major step Thursday night toward finalizing financing for Tate Floors’ planned manufacturing facility, with a resolution that would authorize up to $85 million in industrial revenue bonds — an increase from the $75 million approved last year.
The resolution would formally approve the bonds needed to finance the acquisition, construction, and equipping of the Tate Floors facility, which will be leased back to the company.
City Attorney Rich Alexander said this vote represents the second and final step in a two-part bonding process.
Last year, the council adopted what is known as an “Inducement Resolution,” which allowed Tate Floors to begin spending money on the project while giving the company assurance that the city intended to issue the bonds. That first resolution was also required for the company to begin the process of securing state economic development incentives.
Now, the council is being asked to approve what is called the “Authorizing Resolution,” which actually allows the bonds to be issued.
The bond cap has been increased from the original $75 million to $85 million. Alexander said bond counsel was informed by Tate Floors that its total investment is now expected to exceed the original estimate, primarily because of additional machinery and equipment planned for the site.
The higher cap is intended to ensure the full scope of the project can be financed without having to return to council for another amendment.
Tate will produce “high performing thermal management and airflow solutions engineered to optimize efficiency and reliability in the most demanding of data centers,” a governor’s office October press release stated. Tate has begun hiring Glasgow jobs.
Alongside the Tate Floors resolution, the council will also take up a series of other financial and administrative items.
Council members are expected to approve a second reading of an ordinance authorizing Water and Sewer Refunding Revenue Bonds, which would allow the city to refinance existing debt tied to Glasgow Water Company, a measure projected to save the city about $280,000.
Three municipal orders are also on the agenda, including the reappointment of Robert Oliver to the Glasgow Electric Plant Board of Directors and Ernie Myers to the Renaissance Steering Committee. A third order would amend the city’s personnel policies and procedures manual.
Several grant-related resolutions will also be considered. These include an application for a personal protective equipment grant through the Kentucky Community and Technical College System, as well as federal transportation funding through the U.S. Department of Transportation and the Federal Transit Administration.
The council will also consider applying for Transportation Alternatives funding from the Surface Transportation Block Grant program for various city transportation projects.
Another resolution would declare certain Public Works Department property as surplus, a procedural step that allows city-owned equipment to be sold or disposed of.
The meeting will also feature a presentation from David Petersen, chairman of the Barren County Economic Authority, before the council moves into formal business.
The special-called meeting is scheduled for Jan. 29 at 6 p.m. at Glasgow City Hall.
The agenda is as follows:
• Approve Minutes of City Council Meeting Monday, January 12, 2025
Presentation: David Peterson – Chairman, Barren County Economic Authority
Old Business:
• 2nd Reading Ordinance No. 2026 – An Ordinance of the City of Glasgow, Kentucky, Authorizing and Providing for the Issuance and Sale of City of Glasgow, Kentucky Water and Sewer Refunding Revenue Bonds, Series 2026, Dated the Date of Initial Delivery Thereof, for the Purpose of Refinancing Certain Outstanding Obligations of the Water and Sewer System of the City.
New Business:
• Municipal Order No. 2026 – Robert Oliver is hereby re-appointed to the Glasgow Electric Plant Board – Board of Directors.
• Municipal Order No. 2026 – Ernie Myers is hereby re-appointed to serve as a member of the Renaissance Steering Committee.
• Municipal Order No. 2026 – Amending Municipal Order No. 2023-1055, Personnel Policies and Procedures Manual.
• Resolution No. 2026 – A Resolution for the City of Glasgow to Make Application for FY2026 Personal Protective Equipment Grant Administered Through the Kentucky Community and Technical College System.
• Resolution No. 2026 – A Resolution Authorizing the Filing of an Application with the Department of Transportation, United States of America, for Federal Transportation Assistance Authorized by 49 U.S.C. Chapter 53; Title 23, United States Code, or Other Federal Statutes Administered by the Federal Transit Administration and a Resolution Committing the Local Share of Funds Necessary to Secure a Section 5311/5339/5310/5303/5304 Grant Application.
• Resolution No. 2026 – A Resolution for the City of Glasgow to Make Application for a Transportation Alternatives Set-Aside from the Surface Transportation Block Grant (STBG) for Various City Transportation Projects.
• Resolution No. 2026 – A Resolution Declaring Certain Public Works Department Property as “Surplus” Pursuant to KRS 82.083 and Authorizing Disposition.
• Resolution No. 2026 – A Resolution of the City of Glasgow, Kentucky, Authorizing and Approving the Issuance of City of Glasgow, Kentucky Taxable Industrial Building Revenue Bonds, in an Aggregate Principal Amount Not to Exceed $85,000,000, the Proceeds of Which Shall Be Used to Finance the Acquisition, Construction, Improvement, and/or Equipping of an “Industrial Building,” as Defined in KRS §103.200(1)(a), and Leased to Tate Access Floors, Inc., its Affiliates, Successors, and/or Assigns; Authorizing and Approving a Lease Agreement, a Payment in Lieu of Taxes Agreement, and Such Other Documents, Certificates, Agreements, and/or Actions Necessary or Required for the Issuance of the Bonds and the Financing of the Project, Subject to Final Approval of an Incentive Package Provided by the Commonwealth of Kentucky.
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