GLENDALE, Ky. (WDRB) — Kentucky committed $250 million in taxpayer money to bring thousands of jobs to the BlueOval SK electric vehicle battery plant in Hardin County.
But just four months after production began, every worker at the Glendale facility was laid off, raising new questions about what happens to the state’s investment.
The incentive package was structured as an interest-free forgivable loan, according to the contract between the Kentucky Economic Development Finance Authority and BlueOval SK.
The agreement lists the loan amount as “KEDFA $250,000,000” and states the interest rate is 0%, with loan payments that “may be forgiven” if certain conditions are met.
Now, with 1,600 workers out of a job as Ford pulls back from parts of its electric vehicle strategy, residents are questioning what happens with that money.
“We need to hold those people accountable for what appears to be a major failure in the investment of the taxpayer dollar,” Glendale resident Houston Howlett said.
Job targets tied to loan forgiveness
The contract makes clear the loan is tied directly to job creation and wages.
By the end of 2026, BlueOval SK pledged to employ 2,500 workers, according to a job-target chart included in the agreement. In later years, that target increases to 5,000 jobs.
However, that first benchmark now appears unlikely to be met. The company plans to repurpose the plant and is projected to employ about 2,100 workers — and not until 2027, after the 2026 deadline.
Gov. Andy Beshear acknowledged the uncertainty during a Dec. 15 interview.
“We’re talking with Ford about it right now,” Beshear said. “Ford is taking the position of the joint venture, but now we’ve got to look at overall numbers and when they think they’ll hit them for the number of years, so those are ongoing discussions.”
How repayment could be triggered
Under the contract, the state begins reviewing BlueOval SK’s job and wage numbers annually starting in 2027.
If the company meets at least 90% of its job and wage targets, that year’s loan payment may be forgiven, according to the contract.
If it falls short, the agreement allows the state to require repayment. The contract provides a specific example:
“If the Borrower achieves seventy percent (70%) of both targets … the Borrower must pay one minus seventy percent (70%) or thirty percent (30%), of the Annual Payment specified in the table above.”
Annual loan payments range from $10 million to $25 million, continuing through 2038, according to the repayment schedule in the agreement.
Shutdown clause raises additional questions
The contract also includes a separate clause that does not depend on job percentages.
It states that if the borrower “closes, shuts down for a period in excess of 90 days, or for any reason permanently discontinues the Project,” the state can demand repayment of “the entire then outstanding balance of funds disbursed” within 30 days.
WDRB asked the governor’s office whether the repurposing of the Glendale plant qualifies as a shutdown lasting more than 90 days under that provision. At the time of this article's publication, the administration had not responded.
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