EASTERN KENTUCKY — Appalachian Regional Commission (ARC) grants totaling $2.5 million are headed to Eastern Kentucky for infrastructure upgrades. Gov. Andy Beshear announced the funding, administered by the Department for Local Government (DLG), on Monday.

The City of Cumberland and the Northeast Kentucky Regional Industrial Authority in Grayson will receive the grants.

“These projects are great for Eastern Kentucky and will provide better utility service, create jobs and foster real opportunity,” Beshear said. “These advancements will help us sprint out of the COVID-19 pandemic this year and will help us build the stronger, better Kentucky we’ve always imagined.”

DLG Commissioner and Beshear's ARC Representative Dennis Keene explained the importance of the funds, which are expected to create 150 jobs.

“ARC investments have transformed Appalachian communities for decades,” Keene said. “These projects will make a real difference in Eastern Kentucky because they are more than investments in infrastructure, they are investments in our families. Thanks to these projects, hundreds of Kentuckians will have better utility service and access to jobs in their community.”

Cumberland is using $500,000 for water line improvements. It will upgrade 10,000 linear feet of distribution lines from the Cumberland Water Treatment Plant along U.S. Highway 119 and will connect the Letcher County Water and Sewer District with Cumberland's system. The city will also build two water pump stations and a 157,000-gallon water storage tank.

According to a press release from Beshear's office, these upgrades will prevent water loss, frequent waterline breaks, and contamination. The upgrades will "deliver better water service for five businesses and 200 households, and provide new water service for 150 households in Collier's Creek," the press release said.

In addition to the ARC funds, the project includes $800,000 in local funds for a total of $1.3 million in total project funding.

“The citizens of the Tri-Cities and neighboring communities in Letcher County are deserving of these funds that will provide a safe, reliable source of clean water,” said Cumberland Mayor Charles Raleigh. “We are grateful for the collaborative efforts of Gov. Andy Beshear, Congressman Hal Rogers and Sen. Mitch McConnell to provide this ARC grant. Without it, a project of this size would be cost prohibitive. Many small steps have been taken over nearly 10 years to obtain this grant and it is a dream come true to see it becoming a reality.”

The Northeast Kentucky Regional Industrial Authority is Grayson will receive $2 million to construct a 65,000-square-foot metal building on a site at the EastPark Industrial Center, an industrial site created through an interlocal agreement between Boyd, Carter, Elliott, Greenup, and Lawrence counties on a former strip-mining site. The incoming business will use the building for warehousing and distribution. 

The project is expected to create 150 jobs.

The Industrial Authority will also use $2.327 million in local funds in addition to the ARC funding, totaling $4.326 million for this phase of the project. The Industrial Authority also received $1.5 million from the Abandoned Mine Lands (AML) Pilot program for another portion of the project.

“We are grateful for this investment in the EastPark Industrial Center, which will create jobs and bring real opportunity to Northeastern Kentucky,” said David Michael, chair of the Northeast Kentucky Industrial Development Authority Inc. “We appreciate the support of Gov. Beshear, the Department for Local Government and the Appalachian Regional Commission because this grant will help us create jobs, attract new investors and will change lives for hundreds of Kentuckians in the region.”