Summary Background

The KIPDA region’s geographical location provides the best of urban and rural landscapes and offers outdoor recreation, natural green spaces, and pristine farmland. The region is home to the city of Louisville; the largest city in the state of Kentucky. Louisville’s amenity rich downtown is nestled along the Ohio River. Historically, the Falls of the Ohio provided the only navigational barrier on the river and made Louisville a stopping place for river traffic, consequently establishing the city as an epicenter of commerce, trade, and industrial development. As downtown changed with the evolving economy, the waterfront fell into neglect. The successful redevelopment and investment in waterfront real estate has spurred residential and commercial development downtown including recreation and event destinations like Waterfront Park, Louisville Slugger Field, Lynn Family Stadium, and the KFC Yum! Center. Built-environment factors such as redlining have historically restricted development to select neighborhoods and communities. Louisville Metro and its partners are actively working to address the impacts of redlining as part of a more inclusive community and economic development strategy.

The region’s commitment to conserving the natural landscape and making it accessible to all has resulted in an impressive parks system, including 13 Olmsted Parks. Thousands of acres of open and forested land, hundreds of miles of natural and paved trail, and multiple waterways provide residents and tourists healthy activities and access to nature. Destinations include Jefferson Memorial Forest, The Parklands of Floyd’s Fork, Bernheim Arboretum and Research Forest, and the Louisville Loop which is a 100-mile trail system that will encircle the city and link existing parks and neighborhoods. There are also two state parks in Taylorsville Lake State Park and E.P. “Tom” Sawyer State Park that offer many outdoor recreation opportunities. The rural counties in the area have committed to preserving their cultural heritage and livelihood by continuing to work agricultural lands. In total there are over 588,000 acres of prime farmland in the region. Growth threatens to encroach upon these lands therefore public policies and planning efforts need to continue to support economic growth while protecting natural and agricultural land uses.

Agriculture plays a vital role in the economy of the region, contributing millions of dollars from the production of crops and livestock. While direct employment in the sector is small, secondary linkages produce numerous jobs in the region. The region recognizes the importance of cultivating relationships between the Kentucky Department of Agriculture, the Governor’s Office of Agriculture Policy, the US Economic Development Administration, other Kentucky Area Development Districts, and others to promote and develop the agricultural sector of the Kentucky economy. To enhance economic opportunity in this industry requires supporting a wide array of agribusiness and agritech, while broadening the reach of the agricultural businesses in the region through Kentucky Proud partnerships, value-added products, and direct to consumer abilities.

The region is also increasing its focus on air quality and environmental health outcomes. Historically-underserved neighborhoods and communities are disproportionately affected by reduced air quality, due in large part to the presence of largescale industrial plants adjacent to such areas and physical barriers that isolate communities – including highways. The KIPDA region must continue to identify such barriers and identify mitigation measures to ensure health equity across populations.

The region’s natural environment and economic capabilities are thriving and robust, but it is its cultural uniqueness and originality that truly sets the region apart. Because of its location, the area celebrates both Midwestern and southern cultural traditions. With a rich history in agriculture, horse farms and river travel, the region has many cultural assets to offer. Whether it is visiting Shelbyville, the American Saddlebred Capital of the World, going on farm tours in Oldham County, starting the Kentucky Bourbon Trail, or attending horse races, the KIPDA region hosts experiences that are unique to the area and make up the culture. 

Both of Kentucky’s signature industries (equine and bourbon) are on full display in the KIPDA region. The Kentucky Derby horse race has been held annually in Louisville, KY since 1875. The event is nationally recognized and brings guests from all around the world. The Kentucky Derby’s estimated economic impact for the region is over $324 million. There is a parade and several festivals that take place in April leading up to the Kentucky Derby that also help fuel the regional economy. The largest of these is the massive firework display, “Thunder Over Louisville,” which has a $56 million economic impact according to the Kentucky Derby Festival. 

The bourbon industry is expanding in the region and remains a cultural product that the area continues to capitalize upon. The region is home to 26.4 percent of the state of Kentucky’s distillery locations and is currently expanding operations into counties within the area that have yet to land a distilling operation. In addition, 75 percent of the corn used by distillers in 2020 came from Kentucky farmers. This is an example of local businesses supporting local agriculture. Along with the bourbon industry, the craft brewing industry has continued to expand in the region. There are now 41 microbrewery license holders in the region that are providing unique experiences to citizens and travelers. 

The agriculture industry and culinary schools in the region have developed a food culture that prioritizes the use of locally grown and distributed foods. The use of locally grown foods help get nutrition to areas that are classified as food deserts and to at-risk populations. Every county within the region offers direct to consumer fresh food through farmer’s markets and roadside stands. 

Festivals and cultural celebrations take place within the region throughout the year. Music, arts, and entertainment are all seen as integral components of the regional culture, and all get their specific festival to showcase their impact on the region’s identity. Some of the largest of these festivals are the Forecastle Music, Art and Environmental Activism Festival, Muhammad Ali Week, and the St. James Court Art Show. These cultural traditions bring the creative class, entrepreneurs, and artists of the region together and allow visitors to see the artistic community that the area embraces. The region boasts a thriving family culture as well, with a “cultural pass” available for children ages 0-21 to enjoy free access to many of the region’s arts and cultural institutions. Museums showcasing art, science, technology, sports, craft, and design are all offered in the region, as well as exceptional programs in ballet, orchestra, and theatre. The outdoor spaces and park systems have been so well planned and protected in the region that they have become a part of the cultural matrix of the area and many residents claim them as one of their strongest assets.

To continue to remain a viable and growing economy, the region must continue to be a place that creative and entrepreneurial people, and their businesses, want to be a part of. This will be accomplished by preserving the environment and cultural attributes that help to give the region its sense of place and identity. Promoting the KIPDA region as an area that is a great place to work, live, and play is important in retaining the current workforce, as well as attracting new people into the region. Supporting sustainable infrastructure that is critical to helping economic impact projects succeed will also need to be a top priority.

The region should leverage its assets to develop an environment that gives entrepreneurs the best chance to succeed, while also being appealing enough to attract new businesses and be mindful of equitable economic growth. This includes promoting the welcoming business climate in the region. The region is also within a day’s drive of nearly 2/3 of the U.S. population. This is possible through the robust interstate system, making the region a logistics hub. The region also has an active riverport, commercially navigable rivers, strong railway system, and a commercial airport. The KIPDA region contributes to the vitality of the “Golden Triangle,” an economic region containing more than half of the total population in the state, between Louisville, Lexington, and Northern Kentucky/Cincinnati.

The logistical advantage of having the UPS Worldport operating out of Louisville helps to promote business development opportunities and allows companies to compete on a more global scale. The UPS Worldport is the largest fully automated package handling facility in the world. In 2022, Louisville, KY ranked within the top five for Business Facilities top ranked logistics leaders in the country. A low cost of living, affordable energy rates, and some of the cheapest business costs in the nation all weigh in as big factors to entice companies who want to save costs and invest more resources into their operations. 

Connectivity in the region has recently been enhanced with the completion of the Ohio River Bridges project. The highway system in the region provides one-day access to well over 60 percent of the major domestic markets via Interstates I-64, I-65 and I-71. A well-maintained secondary road network also adds convenient ingress and egress to the major interstate highways. River travel and railways have historically played a large part in the area’s manufacturing presence and are still widely used today. The Port of Louisville provides a competitive advantage in handling bulk products on the U.S. inland waterway system to the Gulf of Mexico. The port is a 300-acre facility with 13 miles of on-site and off-site railroad track. The facility includes a bulk commodity transfer terminal, barge fleeting area, ground storage, and a general cargo dock. The region is also served by two class I railroads: CSX and Norfolk Southern (NS). Both CSX and NS railroads provide the region with direct rail service to all markets east of the Mississippi River as well as connecting service to the West Coast. 

To continue the economic growth within the state, Kentucky has established the Kentucky Product Development Initiative (KPDI) to support upgrades at industrial sites throughout the Commonwealth. This was a partnership between the Kentucky Cabinet for Economic Development and the Kentucky Association for Economic Development. The initiative includes $100 million in state funding. Applicants can seek funding for site and infrastructure improvement projects that generate increased economic development opportunities and job creation.

As the region continues to grow, a multi-jurisdictional and equitable approach must be had to develop a balanced system of infrastructure, economic development, and community planning. Leaders must respect and retain current businesses to achieve a climate that will entice new economic endeavors while also supporting the environmental resiliency and cultural vitality of the region.

Just as the economy is evolving, so are the needs of businesses and industries in the KIPDA region. The fastest growing industries and identified target sectors will increase the demand for workers with diverse skillsets and education levels. The labor force will need to have strong skillsets in advanced manufacturing processes, biotechnology, healthcare and medical research, innovative technologies, alternative energy, logistics, agricultural processing, and administrative and technical services. Not all of these fields require advanced degrees but do require an advanced skillset that can be achieved through two-year degree programs, specific training, certificates, and apprenticeships. 

The expected growth rates for occupations vary by the education and training required. While all employment in the KIPDA ADD is projected to grow 0.3% over the next ten years, occupations typically requiring a postgraduate degree are expected to grow 0.9% per year, those requiring a bachelor’s degree are forecast to grow 0.6% per year, and occupations typically needing a 2-year degree or certificate are expected to grow 0.5% per year. Strategic planning and partnering with education providers is needed to make basic skills and vocation training more compatible with the needs of the ever-changing market. 

The region’s vast educational opportunities give the workforce a real advantage by offering numerous colleges, universities, and technical schools. All educational attainment rates are higher than the state averages except for associate degrees with 21.8 percent having some college, 8.4 percent an associate’s degree, 19.71 percent a bachelor’s degree, and 13.3 percent having a postgraduate degree. Current workforce development efforts in the region consist of KentuckianaWorks-the region’s Workforce Development Board, the Kentucky Work Ready Communities Initiative, and KY FAME.

Regional workforce development must take a more inclusive approach to ensure all KIPDA residents have access to good jobs, following principles outlined by the Department of Commerce and the Department of Labor to enhance job quality:

• Recruitment and hiring: qualified applicants, especially those from underserved communities, are actively recruited;
• Benefits: workers are provided family-sustaining benefits that promote economic security and mobility;
• Diversity, equity, inclusion and accessibility: all workers have equal opportunity and are respected, empowered and treated fairly;
• Empowerment and representation: workers can engage in protected, concerted activity without fear of retaliation, and contribute to decisions about their work, how it is performed, and organizational direction;
• Job security and working conditions: workers have a safe, healthy and accessible workplace, adequate hours and predictable schedules;
• Organizational culture: All workers belong, are valued, contribute meaningfully to the organization and are engaged and respected.
• Pay: all workers receive a stable and predictable living wage before overtime, tips and commissions; and
• Skills and career advancement: workers have equitable opportunities and tools to progress to future good jobs, as well as transparent promotion and advancement opportunities.