The third meeting of the Interim Joint Committee on Economic Development and Tourism was held on Thursday, April 15, 1999 at 1:00 PM, in Room 149 of the Capitol Annex. Senator Glenn Freeman, Co-Chair, called the meeting to order, and the secretary called the roll.

Present were:

Members: Senator Glenn Freeman, Co-Chair. Representative Tom Kerr, Co-Chair. Senators Dick Adams, Charlie Borders, David Boswell, Vernie McGaha, Virgil Moore, Dick Roeding, Dan Seum, Katie Stine. Representatives Royce Adams, Hoby Anderson, Bo Ausmus, Eddie Ballard, John Bowling, Kevin Bratcher, Buddy Buckingham, Philip Childers, Perry Clark, Howard Cornett, Tim Feeley, Joseph Fischer, Danny Ford, Porter Hatcher, Jodie Haydon, Dennis Horlander, Ruth Ann Palumbo, Marie Rader, Chris Ratliff, Tom Riner, Gary Tapp, Jim Thompson, Johnnie Turner, Ken Upchurch, Charles Walton, Mike Weaver, and Robin Webb.

LRC Staff: Mary Yaeger, John Buckner, Kim Wilson, and Ellen Steinberg

The minutes of the March 18, 1999, meeting were approved by voice vote.

Senator Freeman asked Representative Palumbo to give a summary of the three meetings held by the Task Force on Economic Development, and the two joint meetings held by the Task Force on Economic Development and the Subcommittee on Small Business Regulations.

Next on the agenda was a review of Resolution 99-1--A Resolution of the Kentucky Economic Development Partnership relating to the reorganization of the Cabinet. The guest speaker for the Resolution was Mr. Gene Fuqua, Executive Administrator, Economic Development Cabinet. Mr Fuqua said that Resolution 99-1 was a Resolution of the Kentucky Economic Development Partnership changing the name of the Department of Job Development to the Department for Business Development. A motion was made and seconded to accept the Resolution.

Next on the agenda was consideration of Executive Reorganization Order 99-331 which is an Executive Order of the Governor relating to the establishment of the Appalachian/Kentucky Artisans Gateway Center Authority. Guest speakers for the Executive Order were Secretary Ann Latta, Cabinet for Tourism Development, Secretary Marlene Helms, and Louis DeLuca, Deputy Secretary, Arts and Humanities Cabinet.

Secretary Latta said that in the 1998 legislative session $6 million was appropriated to develop, operate and manage an Artisans Center. At that time, this project was assigned to the Education, Arts and Humanities Cabinet. Secretary Latta said the Center will become a magnet attraction to bring tourists off I-75 and to showcase and promote Kentucky's wonderful arts and crafts heritage. At the Center, Artisans products from across Kentucky will be displayed, sold and demonstrated and there will be a welcome center with extensive information and promotional materials to inform tourists where to find other arts and crafts products across Kentucky.

Secretary Latta said the Governor's Executive Order establishes a 13 member authority to develop, manage and direct the Center and attaches it to the Tourism Development Cabinet for administrative purposes. Seven members of the authority are appointed by the Governor, including the Secretaries of Tourism Development, Education, Arts and Humanities, Transportation, Finance and Administration, a representative of the Kentucky Arts Council and two at-large members. Six of the members are to be appointed by the Mayor of Berea, including two Berea city government officials, two recommended by the President of Berea College and one recommended by the President of Eastern Kentucky University and one at-large member.

Senator Freeman asked for an explanation of the leasing program with Berea College. Mr. DeLuca said Berea College has land on the interstate that they are willing to lease to the Authority. He said the lease agreement will not be finalized until the Board is formed and the lease can be negotiated.

Senator Freeman asked about the total cost of the program. Secretary Latta said it would be $6 million.

Representative Cornett asked how a local crafts person would arrange to sell their products. Secretary Latta said the Authority will set criteria for products that will be shown. Mr. DeLuca said if a person gets into the craft marketing program which exists now, their products will be considered for sale. Secretary Latta said the Center will have information about the co-op and about the trail to bring tourists to that region. A motion was made and seconded to accept the Resolution.

Diane Ratliff, President, Pine Mountain Trail Association gave a presentation on a citizens group effort to create a 110-mile hiking trail linking Breaks Interstate Park with Cumberland Gap National Historic Park. Ms. Ratliff stated that the idea of the hiking trail was brought to her attention by Ross Kegan of Jenkins, Manager of Mines and Engineering, Golden Oak Coal, and Shad Baker, Letcher County Extension Agent for Agriculture/Natural Resources. Ms. Ratliff said she agreed to be a facilitator to schedule a meeting that would include a representative of all state agencies with holdings on Pine Mountain. At that time, she was the Director of Development for the Kentucky Chapter of The Nature Conservancy, and had many colleagues in the government ranks. Everyone contacted expressed enthusiasm for the project and was anxious to meet.

Senator Freeman asked about the length of the trail. Ms Ratliff said at first the trail was going to be from Breaks Interstate Park to Pine Mountain State Park, but as they have gathered information they have learned that the state of Tennessee is building a 220 mile linear park from Chattanooga to Cumberland Gap which would enable them to link with the new Cumberland Heritage trail of the new Tennessee Linear Park as well.

Senator Freeman asked if this would be a parallel trail with shelters for people to camp. Ms. Ratliff said one of their subcommittees is specifically looking at the preferred trail route which would include water sources and a hook up with the new visitor's center in Jenkins.

Senator Freeman said if there were any money concerns, the committee would be receptive to working out a way to give some financial aid. Ms. Ratliff said they were in the process of getting incorporated, and once this is done they will have to apply to the Internal Revenue Service for nonprofit status before they would be able to solicit money. She said they have been told it takes $10 thousand for every mile of trail which would include setting aside money for everything involved in building the trail except perpetual maintenance.

Senator Freeman asked if they have received any federal money. Ms. Ratliff said they received a grant from the National Park Service, RTCA program and they will produce a brochure for the association as a tool for grassroots outreach as well as fund raising once granted non-profit status.

Representative Ratliff asked if it was envisioned that Breaks would be state maintained. Ms. Ratliff said their preference would be to either have the Pine Mountain Trail Association or the Department of Parks hold the easements, and that Fish and Wildlife said they would also consider holding the easements. She said she didn't foresee getting the National Parks Service involved on a grand scale because technically less than 30 miles of the trail is in the Jefferson National Forest.

Commissioner Kenny Rapier, Department of Parks gave an overview of the park activities. He said 60 of the 70 parks projects packet funded in the 1994 and 1996 legislative session have been completed, five are under construction and five are in design. This project included both major renovation and new construction totaling nearly $100 million. The 1998 General Assembly approved over $44 million of additional new construction and renovation of the park system. Of the $44 million, $25 million was for design, renovation and construction of new golf courses at seven different locations. Commissioner Rapier stated that the request for proposals have already gone out and were issued by the Finance Cabinet in January. Fourteen firms responded to the proposals and eight were selected and ranked. He said the contracts should be awarded by mid-May.

Commissioner Rapier said of the other 17 projects funded by the General Assembly, one is complete, five are under construction, and 11 are in design. He said he agreed with Senator Freeman that there should be an ombudsman to travel unannounced, with a checklist, to the 49 parks and Breaks Interstate and report the findings back to his office, this should be implemented by the middle of May.

Senator Freeman said he would like for the committee to be able to have a copy of the report. He said if this system works well, the legislature is open to funding one or two positions to be able to do this on a routine basis and not impact the Park's budget.

Commissioner Rapier said there has been a concentrated effort on the park properties to take care of the logs and other damage that was done by the snow and ice storms. He said they were encouraging the local government and people to clean up along the roadways.

Commissioner Rapier asked Secretary Ann Latta, Tourism Development Cabinet to give a report on the Bill Monroe Museum. Secretary Latta said the museum was a project that received an $800 thousand appropriation for site acquisition and development. The museum is in Ohio County which is the hometown of Bill Monroe. She said the county has signed an option to purchase a 20 acre site and is presently negotiating with the Monroe family to purchase memorabilia to be put in the museum.

Representative Haydon asked Secretary Latta to encourage the Transportation Department to find a way to reinvent the "Adopt the Highway Program".

Representative Ballard asked if their was a policy on diving for golf balls in the lake. Commissioner Rapier said there was someone checking to see if there is a policy on the liability for doing this.

Senator Borders said Kentucky needs to commit dollars to advertising the park system and during the next session would like to see more money put into advertising.

Senator Stine asked when the planning stages of the golf park at Kincaid Lake will be completed. Commissioner Rapier said they should have the contractor by May 15 and it should be under construction in the late summer of early fall and should be completed in the year 2001.

Senator Stine said there was concern about the lake filling up with sludge, and asked what was being done to take care of the problem. Commissioner Rapier said they were doing a study with Fish and Wildlife trying to find out how to find the source of the problem. Senator Stine asked if she could have a copy of the study. She asked what was meant by donation of land. Commissioner Rapier said it was a request to get private development to expand the dollars in tourism and the state parks to the private sector. Senator Stine asked about the progress of the potential privatization partnership for construction of a lodge. Secretary Latta said they put out a request for information to see if there was interest with private developers to put lodges on the underdeveloped state parks. She said because of the Tourism Development Act that was adopted, any developer who would do that is eligible for a reimbursement of sales tax collected on the project.

Senator Boswell suggested that the committee tour the parks to see what has been done, and check on additional needs.

Senator Freeman said he agreed that the committee should visit the parks and have a first hand observation of the park system.

Being no further before the committee, the meeting adjourned at 3:30 PM.