The payoff for Kentucky's latest trio of corporate facility projects promises to be much higher — if not more dramatic — than the high price paid for exotic bets on Giacomo at this year's Run for the Roses. But given the Commonwealth's recent economic momentum, nobody's calling these victories flukes.

Fidelity already operates three buildings on its Covington, Ky., campus totaling approximately 780,000 sq. ft. (72,462 sq. m.). When the new facility is complete, Fidelity will relocate more than 700 employees currently in Blue Ash, Ohio leased space to consolidate its Midwest operations entirely on the Covington campus. Click on the image above to view a high resolution pdf version of the map.

       The first week of June was indeed a propitious one for the Bluegrass State. First to the wire was Boston-based Fidelity Investments, which announced June 2 that it would consolidate its Midwest operations with a $115-million expansion of its Covington campus. The integration will result in 1,500 new jobs in Kentucky, though no doubt some of those new employees will come from just across river in Ohio and Indiana.
       The financial services and investment company will begin construction later this year on a new 350,000-sq.-ft. (32,515-sq.-m.) facility on its 188-acre (76-hectare) campus, where more than 2,900 employees already work. The building will be the fourth built on the Covington campus since 1994 and is expected to open as early as the end of 2007.
       "Fidelity wants to thank Governor [Ernie] Fletcher as well as all of the elected officials and business leaders who have worked hard to create a positive business climate, and a highly educated and talented work force here in Kentucky," said Fidelity Investments Vice Chairman and Chief Operating Officer Robert Reynolds.
       Covington serves as one of Fidelity's nine regional sites across the country. The others are situated in New Jersey, Massachusetts, Rhode Island, New Hampshire, New York, North Carolina, Utah and Texas.
       According to the Kentucky Cabinet for Economic Development, the incentive package includes tax benefits up to $10 million under the Kentucky Jobs Development Act (KJDA), a program administered by the Kentucky Economic Development Finance Authority (KEDFA) and aimed at increasing the number of service- and technology-related jobs in the state.
       In addition, as part of the Kentucky Transportation Cabinet's Six-Year Road Plan, a connector road near the Fidelity campus will be completed by December 2007. The $17.5-million project is also seeing funding and maintenance from the City of Covington and Kenton County Fiscal Court, and will open up more than 250 acres of landlocked property in Covington and in Ft. Wright for development.

       Hydro-Gear, a manufacturer of commercial and consumer lawn and garden products, is moving a portion of its transaxle production from Sullivan, Ill., to Princeton, Ky. by November 2005 with the acquisition of a 67,500-sq.-ft. (6,271-sq.-m.) building on 30 acres (12 hectares) in the Princeton Industrial Park. The company's June 6 announcement touted a $3-million investment and 150 new jobs in the Caldwell County community, adjacent to the Western Kentucky Parkway and about an hour and a half southwest of Evansville, Ind.
       "We chose Princeton for its strategic location and the community's strong work ethic," said Ray Hauser, president of Hydro-Gear.
       "We have a very aggressive startup schedule, but it is the first of many important milestones in making the Princeton operation a long-term success," added Hydro-Gear's Vice President of Operations Mike Todd.
       In this case, KEDFA has approved tax benefits up to $3 million under the Kentucky Industrial Development Act (KIDA), a separate incentive program aimed at increasing manufacturing employment in the commonwealth.

       Finally, back in the home of the Kentucky Derby, media services company Sonopress LLC and Coral Graphics Services, both part of the arvato/Bertelsmann family of companies, announced on June 7 a joint venture to open a 260,000-sq.-ft. (24,154-sq.-m.) production facility that will open next month.
       The 100 jobs created at the unique joint complex will pay anywhere from $10.45 to $34.76 per hour.
       The Louisville facility will initially house printing, auto assembly and display build capabilities and focus on the entertainment and software industries. And the companies anticipate the integrated printing, product assembly and distribution processes wil greatly enhance their time-to-market.
       "It is estimated that 60-70 percent of sales in the gaming industry occur during the first month of a title's release," said Joe Mann-Stadt, president and CEO, Sonopress US. "Therefore, it is absolutely critical that game publishers have an efficient supply chain to ensure that their titles are consistently available to retailers at a moment's notice. Our new facility in Louisville will enable us to produce, package and distribute high-quality games and software in a rapid and cost-effective manner, giving our customers even more confidence that their products will be on shelves during crucial sales periods."
       On the ground, that means Coral Graphics will turn around projects fast for Sonopress customers.
       "This partnership will be a significant benefit to the customers we serve and to both companies," said Dave Liess, president and CEO, Coral Graphic Services. "Our extensive decorative capabilities and technical expertise in prepress, remote proofing, digital printing and conventional offset and finishing, combined with Sonopress' packaging and replication services will create an efficient and competitively priced solution."
       KEDFA has approved Sonopress for up to $2.5 million in start-up cost fuinds under KJDA.

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