‘Huge opportunity’ or ‘power grab?’ Legislature wades into dispute between KY cities.
There may finally be an end in sight to the longstanding dispute between two Southern Kentucky cities over control of an area that would be valuable for development.
The state House gave final approval late Tuesday to a bill that would allow Corbin to annex an area adjacent to the city, if a court strikes down London’s move to annex it.
The area in dispute is at Exit 29 on busy Interstate 75 and along the Cumberland Gap Parkway.
Some businesses there want to sell alcohol, but the land is in a part of Laurel County that does not allow legal sales.
Corbin does have legal alcohol sales, but hasn’t been allowed to annex the area just across the county line because of a 1930s court case barring cities from taking in territory in a county in which they were not initially chartered, according to state Rep. Regina Huff.
Huff, a Republican, represents Whitley County — including a section of Corbin — and part of Laurel County.
Corbin, a historic railroad town, was incorporated in Whitley and Knox counties before the court decision.
It is one of only a handful of Kentucky cities incorporated two counties.
Not being in an incorporated area with alcohol sales has stymied development at the I-75 exit, Huff said during debate on the annexation bill, Senate Bill 274.
The area lost an opportunity for a project with 200 jobs, Huff said.
“This is a huge economic opportunity for the entire region,” Huff said of letting Corbin annex the site.
London took a novel approach to the situation last year, annexing nine miles of the right of way along I-75 to reach the exit at Corbin, along with a separate parcel beside the interstate and along the parkway toward the current Corbin limit.
London was trying to help businesses in the area, not antagonize Corbin, said Paula Thompson, head of the London-Laurel Economic Development Authority.
“It needs ownership,” Thompson said of the area. “The city only stepped in because Corbin wasn’t able to.”
London’s annexation made it voluntary to join the city. At least 10 businesses have said they want to join, Thompson said.
Corbin sued to strike down London’s annexation, arguing that taking in the interstate right of way was a ruse to connect to the more valuable development site at Exit 29 near Corbin.
That strip of land by the interstate didn’t meet legal requirements to be annexed into London, and London didn’t give proper notice of its intent to annex the land, Corbin has argued.
London contends that the annexation was legal, said Larry Bryson, the city attorney.
The lawsuit is pending.
If London loses that case and a court nullifies its annexation of the disputed area, SB 274, sponsored by Senate President Robert Stivers, R-Manchester, would let Corbin annex the area.
The Senate approved the bill earlier, so it will become law if Gov. Andy Beshear signs it.
The debate over the measure divided Republicans representing London and Corbin.
Huff said Corbin should have the right to annex the area for a number of reasons, including that it spent $40 million decades ago to provide water and sewer service in the area in order to attract industry.
Many people call the area north Corbin, and businesses there have Corbin telephone numbers and addresses, Huff said.
But Rep. Robert Goforth, a Republican who lives in Laurel County, said the bill was “nothing more than a power grab.”
Goforth and others argued the legislature shouldn’t get involved in the dispute while there is a court case pending. Goforth also argued the bill is special legislation, presaging a potential challenge. State law bars special legislation.
Bryson said challenging the measure on that basis would be among London’s options.
The House approved the measure 62 to 24.
If Corbin ultimately annexes the area under the measure, becoming part of the city would be voluntary for businesses and residents, said Corbin Mayor Suzie Rasmus.
Razmus said Corbin is well-equipped to serve the area with police and fire protection.
Taxes also are an issue.
Laurel County has an occupational tax, and London gets some of what the county collects.
Razmus said Stivers’ bill has a provision guaranteeing that if Corbin annexes the area, Laurel County would continue to receive the same amount of money from the tax as before the annexation.
If tax collections in the area grew, Corbin would get the increase above Laurel County’s guaranteed minimum, Razmus said.
An analysis with the bill said the financial impact to counties should be “neutral to minimal” because of the provision to continue getting the same tax revenue as before a city’s annexation.
