Runaway Inflation for 2022. Inflation is now part of our everyday lives. As of November of 2021, inflation was at the highest its been sine 1982. This doesn’t even count things like your natural gas, which increased by 33% in the Louisville area and groceries.
We now have inflation, so, what is Stagflation?
Stagflation is when prices are continuing to increase, while the growth of the economy becomes stagnant. In other words, its bad!!
The federal government has poured so much cash into the economy in many ways, but I will focus on one of them. When you give most people in the country a stimulus check, they will typically go spend it immediately. When everyone goes out and buys stuff at the same time, this stimulates the economy. When the economy is already growing aggressively and you pour stimulus money into it, you get inflation. The same group of people now have more money. They go out and buy stuff they would not have been able to buy before, this causes shortages. When you there are lots of people trying to buy stuff and there is not enough stuff to go around, then those same people will pay more for that product. That my friend is one way to create inflation. If the economy grows because of the stimulus and people get paid more (inflation also inflates peoples income), then no one gets hurt. People have more income, and they spent that extra income on higher prices. At the end of the day, they have exactly the same amount of money they would have had with the lower prices and less income.
However, if the economy slows down, people’s incomes stop increasing, but prices continue going up. This is STAGFLATION!!!
Regional Analysis:
Three Types of Statistical Areas:
The statistical areas of the United States of America comprise the metropolitan statistical areas (MSAs), the micropolitan statistical areas and the combined statistical areas currently defined by the United States Office of Management and Budget (OMB).
Combined Statistical Areas (CSAs):
Combined statistical area is a United States Office of Management and Budget term for a combination of adjacent metropolitan and micropolitan statistical areas in the United States and Puerto Rico that can demonstrate economic or social linkage. The OMB defines a CSA as consisting of various combinations of adjacent metropolitan and micropolitan areas with economic ties measured by commuting patterns. These areas that combine retain their own designations as metropolitan or micropolitan statistical areas within the larger combined statistical area.
Metropolitan Statistical Areas (MSAs):
In the United States, a metropolitan statistical area is a geographical region with a relatively high population density at its core and close economic ties throughout the area. Such regions are neither legally incorporated as a city or town would be, nor are they legal administrative divisions like counties or separate entities such as states; because of this, the precise definition of any given metropolitan area can vary with the source. The statistical criteria for a standard metropolitan area were defined in 1949 and redefined as metropolitan statistical area in 1983. A typical metropolitan area is centered on a single large city that wields substantial influence over the region. However, some metropolitan areas contain more than one large city with no single municipality holding a substantially dominant position. MSAs are defined by the U.S. Office of Management and Budget and used by the Census Bureau and other federal government agencies for statistical purposes.
Micropolitan Statistical Areas:
The OMB defines a Micropolitan Statistical Area as one or more adjacent counties or county equivalents that have at least one urban core area of at least 10,000 population but less than 50,000, plus adjacent territory that has a high degree of social and economic integration with the core as measured by commuting ties.
Primary Statistical Areas:
The subject is influenced in a general manner by the economic, political, physical and social characteristics of the Louisville-Jefferson County-Elizabethtown-Madison, Kentucky-Indiana (CSA) and Louisville-Jefferson County, Kentucky-Indiana (MSA).
A map of the Louisville-Jefferson County-Elizabethtown-Madison, Kentucky-Indiana (CSA) is presented below:
Louisville MSA Boundaries, and Other Relevant Areas:
Aside from the Louisville MSA, the subject is also influenced in a general manner by the economic, political, physical and social characteristics of the Elizabethtown-Fort Knox, KY (MSA), Bardstown, KY, and Madison, IN.
A map of the Louisville-Jefferson County, Kentucky-Indiana (MSA) is presented below:
The Louisville-Jefferson County, Kentucky-Indiana (MSA) is shown in green.
The Elizabethtown-Fort Knox, KY (MSA) is shown in orange.
The Bardstown, KY area is shown in blue.
Louisville-Jefferson County, Kentucky-Indiana (MSA):
The Louisville metropolitan area or Kentuckiana, also known as the Louisville-Jefferson County, Kentucky-Indiana, metropolitan statistical area, is the 45th largest metropolitan statistical area (MSA) in the United States. The principal city is Louisville, Kentucky.
It was originally formed by the United States Census Bureau in 1950 and consisted of the Kentucky county of Jefferson and the Indiana counties of Clark and Floyd. As surrounding counties saw an increase in their population densities and the number of their residents employed within Jefferson County, they met Census criteria to be added to the MSA. Jefferson County, Kentucky (contiguous with Louisville Metro), plus eleven outlying counties – seven in Kentucky and five in Southern Indiana – are now a part of this MSA. One other Kentucky county was part of the MSA in the 2000 and 2010 U.S. Censuses, but was spun off by the Census Bureau into its own Micropolitan Statistical Area in 2013.
People living in any portion of the MSA are said to be living in the Louisville-Jefferson County Area. Because it includes counties in Indiana, the MSA (or a large portion thereof) is regularly referred to as Kentuckiana. It is now the primary MSA of the Louisville-Jefferson County-Elizabethtown-Madison, Kentucky-Indiana combined statistical area (or Louisville CSA, which adds Hardin County, Kentucky, LaRue County, Kentucky, Jefferson County, Indiana, and Nelson County, Kentucky). The combined statistical area created by the United States Bureau of the Census in 2000 and most recently redefined in 2013 comprises the Louisville-Jefferson County MSA, the Elizabethtown-Fort Knox, Kentucky, MSA, the Bardstown, Kentucky, micropolitan statistical area and the Madison, Indiana micropolitan statistical area.
Area History:
Louisville is the largest city in the Commonwealth of Kentucky and the 29th most-populous city in the United States. It is one of two cities in Kentucky designated as first-class, the other being Lexington, the state’s second-largest city. Louisville is the historical seat and, since 2003, the nominal seat of Jefferson County, on the Indiana border.
Named after King Louis XVI of France, Louisville was founded in 1778 by George Rogers Clark, making it one of the oldest cities west of the Appalachians. With nearby Falls of the Ohio as the only major obstruction to river traffic between the upper Ohio River and the Gulf of Mexico, the settlement first grew as a portage site. It was the founding city of the Louisville and Nashville Railroad, which grew into a 6,000-mile system across 13 states. Louisville lies along the Ohio River, is located approximately 300 miles south of Chicago. The city is situated geographically within the United States such that it is often referred to as either the northernmost Southern city, or the southernmost Northern city. The Louisville metropolitan area is even considered part of the Great Lakes Megalopolis.
In the post-revolutionary U.S., Louisville was an important western outpost. Situated at the Falls of the Ohio, Louisville became a key port for the western frontier. Similar to its inland-port contemporaries, such as Cincinnati and St. Louis, Louisville had an industrial river economy in the beginning; growth was driven by heavy manufacturing, shipping and trade. Louisville also gained attention for its bourbon whiskey, Louisville Slugger baseball bats and Kentucky Derby, cultural hallmarks that live strong today.
Postwar Louisville saw a movement away from heavy manufacturing and away from river trade, as production processes and labor needs changed across the country. Coupled with deurbanization and population loss, Louisville’s economic transition was typical of that of industrial cities. Atypical was Louisville’s ease of adapting to a modern postindustrial service economy.
As it stands today, the city is a particularly strong hub for the healthcare and foodservice industries. Logistics and distribution, as well as recently expanding manufacturing, are other industries of note. This economic transition also helped dampen urban population loss experienced in similar cities and even helped garner healthy population growth in recent years.
Today, the city is known as the home of legendary boxer Muhammad Ali, the Kentucky Derby, Kentucky Fried Chicken (KFC), the University of Louisville and its Cardinals, Louisville Slugger baseball bats, and three of Kentucky’s six Fortune 500 companies: Humana, Kindred Healthcare, and Yum! Brands. Muhammad Ali International Airport, Louisville’s main commercial airport, hosts UPS’s worldwide hub.
Since 2003, Louisville’s borders have been the same as those of Jefferson County, after a city-county merger. The official name of this consolidated city-county government is the Louisville/Jefferson County Metro Government, abbreviated to Louisville Metro. Despite the merger and renaming, the term “Jefferson County” continues to be used in some contexts in reference to Louisville Metro, particularly including the incorporated cities outside the “balance” which make up Louisville proper.
Social Trends, Economic Circumstances, Environmental Conditions, and Governmental Controls and Regulations:
The value of real property is influenced by the interaction of four basic forces. These forces include social trends, economic circumstances, environmental conditions, and governmental controls and regulations. The interaction of these four forces influences the value of every parcel of real estate in the market. The tables and charts presented throughout the following pages include additional data that help tell the story about Louisville’s economy.
Social Trends, State and MSA Population:
Social forces are trends that are exerted primarily through population characteristics. Real property values are affected not only by population changes and characteristics, but also by various forms of human activity.
Population growth trends influence employment growth, income levels, and many other key demand parameters analyzed in determining commercial real estate productivity.
Recently released population estimates from the Census document how much Kentucky has continued to urbanize over the last seven years. Not surprisingly, rural eastern and western counties’ populations have dropped while the “golden triangle” and the area around Bowling Green grew. Overall, between 2010 and 2017, Kentucky grew by an estimated 106,240 people or 2.4 percent. But that growth was dramatically lopsided toward growth in urban areas.
By percent, the counties (all rural) that saw the largest loss of population between 2010 and 2017 were Lee (-14.9 percent), Martin (-11.3 percent), Pike (-9.5 percent), Floyd (-9.2 percent), and Fulton (-9.0 percent). The counties (all urban) that saw the largest percent growth were Scott (+15.9 percent), Warren (+12.7 percent), Shelby (+12.2 percent), Oldham (+9.9 percent), and Jessamine (+9.6 percent). When looking at the number of people who left counties, Pike had by far the greatest decline with 6,190 fewer residents. Unsurprisingly, Jefferson and Fayette counties saw the largest growth with 29,140 and 25,260 more people respectively. Even though the total Kentucky population grew by 106,240 people, the growth in urban counties was 118,450, or 4.7 percent, while the population dropped 12,210, or -0.7 percent, in rural counties between 2010 and 2017.
The national trend of urbanization is longstanding, but the hastening decline of coal and certain types of manufacturing jobs in Kentucky are almost certainly contributing to the decline in some rural counties’ populations. In fact, since the Great Recession, job gains have been concentrated almost exclusively in urban and suburban areas, the same areas that have seen the lion’s share of Kentucky’s population growth. These trends raise concerns about the impending requirement that Medicaid enrollees meet a certain number of hours of work activities or else lose coverage and the similar requirement for food assistance that is currently being reinstated. As distressed rural economies shrink, job opportunities also contract leaving people unable to fulfill these requirements and keep health care and food assistance. In turn, fewer people with health coverage and help at the grocery store will take important resources out of these communities, very likely causing job losses in health care and grocery stores but also in other sectors.
The shrinking population in rural counties also presents a problem for local governments for whom the tax base dwindles even as the need to invest in good schools and roads remains.
Louisville-Jefferson County, Kentucky-Indiana (MSA) Population Growth Trends:
The Louisville-Jefferson County, Kentucky-Indiana (MSA), as forecasted by Proximity One, is projected to grow by approximately 26%, between 2010 and 2040. By 2035 the Louisville-Jefferson County, Kentucky-Indiana (MSA) is projected to top 1.5 million people. Jefferson County is forecast to experience the largest numeric gain over the projection period, accounting for 42% of the predicted growth in the MSA.
The Louisville-Jefferson County, Kentucky-Indiana (MSA), as forecasted by the University of Louisville, utilizing the Kentucky State Data Center, shows the MSA has experienced steady growth, and population growth tends to be a positive indicator for real estate values. The University of Louisville forecasts this population increase into 2050, and has a higher population estimate for 2035 at closer to 1.6 million, as opposed to Proximity One’s 1.5 million+ estimate.
Two graphics illustrating the pertinent points of the two population forecasts by Proximity One and the University of Louisville are presented below, with dark red on the left being the highest change, and dark red on the right being highest percentage change:
The Louisville-Jefferson County, Kentucky-Indiana (MSA) includes Louisville-Jefferson County and 11 surrounding counties, seven in Kentucky and five in Southern Indiana. As of 2018, the MSA had a population ranking of 45th nationally. The individual population, and population estimate figures for those 12 counties, and an additional three that make up the 15-County Louisville-Jefferson County-Elizabethtown-Madison, Kentucky-Indiana (CSA) is presented as follows:
Economic Forces:
Economic forces are the fundamental relationships between current and anticipated supply and demand and the economic activities in which the population participates in order to satisfy its wants, needs, and demands through its purchase power.
Within the MSA, Jefferson County is the primary county and should continue to experience growth in the professional sector grouping, the health care and social assistance sector, transportation and warehousing, and hospitality/tourism. Manufacturing remains a question. Most analysts believe that manufacturing employment will reach some “floor” and remain relatively constant around that floor for the future.
The chart below indicates the employment by sector for both the state and the MSA per the US bureau of labor. As shown the overall employment composition for both the MSA and state are similar and diverse indicating a stable economic base.
Industries:
The major employers of Louisville are consistent with the sector employment shown previously. The chart below lists the 29 largest private employers. It is noted that the government and school systems make up a large component of the area employment.
Along with a vibrant entrepreneurial climate, the region has a diversified economy with an emphasis in the sectors surrounding health, logistics, manufacturing, food and beverage, and business services. It is also significant that 95% of the world’s bourbon is made in Kentucky.
Higher Education:
Institutions of higher learning typically are not as vulnerable to economic downswings, and they help to provide an area with a more solid employment base. Noted universities and colleges in Metro Louisville are the University of Louisville, Jefferson Community College, Sullivan University network, Bellarmine University, Louisville Technical Institute, Louisville Presbyterian Theological Seminary, Spalding University, Indiana University Southeast, and Indiana Vocational Technical School.
The 15-County Greater Louisville Educational Attainment for 2020 estimated population over 25, as compiled by Claritas, is presented below.
Transportation:
Highway accessibility is a primary consideration in planning an area’s future growth and development. The Louisville metropolitan area is accessed via three different interstate highways. I-64 is a major east-west corridor, capable of delivering goods to the East or West Coasts. St. Louis lies to the west on I-64; West Virginia is accessible to the east. I-65 is a major north-south corridor, connecting Louisville with Indianapolis, IN and Chicago to the north, and Nashville, TN and Montgomery, AL to the south. I-71 is a regional interstate highway that connects Louisville with Cincinnati, OH, as well as I-75, which services not only major points in Ohio but all major points between Detroit, MI and Florida. Regionally, Indianapolis, Cincinnati, and Nashville are all within a three-hour drive.
Louisville’s central location in the eastern United States, gives it the claim that over 50% of the United States Population can be reached within a one-day drive. This makes Louisville and ideal location for distribution.
Louisville’s main airport is the centrally located Louisville International Airport, whose IATA Airport Code (SDF) reflects its former name of Standiford Field. The airport is also home to UPS’s Worldport global air hub. UPS operates its largest package-handling hub at Louisville International Airport and bases its UPS Airlines division there. Over 3.5 million passengers and over 3 billion pounds (1,400,000 t) of cargo pass through the airport each year. Louisville International Airport is also the 4th busiest airport in the United States when in cargo passage, and it is the 11th busiest in cargo passage in the world.
The Ohio River provides an avenue for water transportation, which includes a considerable amount of barge traffic. The Ohio River connects with the Mississippi River in St. Louis to the west and the Allegheny River in Pittsburgh, PA to the east.
Public transportation consists mainly of buses run by the Transit Authority of River City (TARC). The city buses serve all parts of downtown Louisville and Jefferson County, as well as Kentucky suburbs in Oldham County, Bullitt County, and the Indiana suburbs of Jeffersonville, Clarksville and New Albany.
Louisville is served by two major freight railroads, CSX (with a major classification yard in the southern part of the metro area) and Norfolk Southern. Five major main lines connect Louisville to the rest of the region. Two regional railroads, the Paducah and Louisville Railway and the Louisville and Indiana Railroad, also serve the city.
Governmental Forces & Incentives:
Governmental, political and legal actions at all levels have an impact on property values. The legal climate of a particular time or in a particular place may overshadow the natural market forces of supply and demand.
In terms of taxes, Kentucky has recently enacted wide-spread reforms to tax code policy. Reforms include the repeal of the corporate license tax and the intangible property tax, as well as a reduction in the corporate income tax rate from 8.25 percent to the current 6%. Personal income taxes have also been reduced to a range of 2-6%. Indiana ranks 8th in Tax Foundation’s 2015 Business Tax Climate Index. The cost of doing business in Indiana is very favorable, due in part to having one of the best workers’ compensation rates and unemployment tax rates. Due to legislation passed this year, corporate tax for Indiana is set to drop from 7% to 4.9% by 2021.
Kentucky Tax Incentives:
In terms of financial incentives, benefits are available for all types of companies – new, existing and relocating; regional and national headquarters; back-office; distribution and supply chain; manufacturing; and research and development. Both Indiana and Kentucky have generous business incentives and financial programs. Incentives for both Kentucky and Indiana counties are executed at the state level. The local community in which the business will locate will engage the state representatives and facilitate the execution of the incentives. The Kentucky Business Investment (KBI) program provides income tax credits and wage assessments to new and existing agribusinesses, regional and national headquarters, manufacturing companies, and non-retail service or technology related companies that locate or expand operations in Kentucky. The Kentucky Enterprise Initiative Act (KEIA) program provides for new or expanded service or technology, manufacturing, or tourism attraction project in Kentucky.
Indiana Tax Incentives:
The Economic Development for a Growing Economy (EDGE) Tax Credit provides incentive to businesses to support jobs creation, capital investment and to improve the standard of living for Indiana residents. The Hoosier Business Investment Tax Credit (HBITC) provides incentive to businesses to support jobs creation, capital investment and to improve the standard of living for Indiana residents. The Skills Enhancement Fund (SEF) Provides assistance to businesses to support training and upgrading skills of employees required to support new capital investment. There are more incentives offered by the states, and a more comprehensive list is available from the Greater-Louisville website.
Outlook:
Our review of the above data indicates that the Louisville MSA has historically enjoyed a relatively stable economy, evidenced by a historical pattern of increasing income levels, a steady creation of new jobs, and relatively low unemployment rates.
In conclusion, the economic outlook for the Metro Louisville MSA is favorable for the short and long-term overall success of the subject. The economic trends in the Louisville/Jefferson County, KY-IN (MSA) suggest that investment and economic activity is increasing and should continue to do so into the future.
REGIONAL ANALYSIS OF LEXINGTON, KENTUCKY MSA
January 2020
An MSA is a geographic area with a significant population nucleus, along with any adjacent communities that have a high degree of economic and social integration with that nucleus.
The Lexington-Fayette Metropolitan Statistical Area covers six counties in the state of Kentucky. These counties include Fayette, Scott, Woodford, Bourbon, Clark, and Jessamine.
Lexington is located in the central portion of the State of Kentucky. Lexington is located 70 miles west of Louisville, 20 miles southeast of Frankfort, the state Capital of Kentucky, 70 miles south of Cincinnati, Ohio, 150 miles west of Charleston, West Virginia, and 150 miles north of Knoxville, Tennessee.
The value of real property is influenced by the interaction of four basic forces. These forces include social trends, economic circumstances, environmental conditions, and governmental controls and regulations. The interaction of these four forces influences the value of every parcel of real estate in the market.
The tables and charts presented throughout the following pages include additional data that help tell the story about Louisville’s economy.
A presentation of the Lexington MSA is presented on the following page.
SOCIAL TRENDS
Social forces are trends that are exerted primarily through population characteristics. Real property values are affected not only by population
changes and characteristics, but also by various forms of human activity.
Population and Area Growth
Population growth trends influence employment growth, income levels, and many other key demand parameters analyzed in determining commercial real estate productivity. The table below shows the population in the Lexington MSA in comparison with the State of Kentucky and the United States. Historical data, as well as projections, are shown. The MSA population is steadily increasing faster than both the state of Kentucky and the United States. These trends are expected to continue as indicated by the 2022 population projections. The chart is shown below.
Local Economy: The Bluegrass is the financial, educational, retail, health care, service, and cultural center of Central Kentucky. Lexington-Fayette County is the merged urban county government centered among an eight county alliance, which represents the Bluegrass Region. The local economy is centered on the horse industry, healthcare, technology, and higher education. In 2014 there was more than $1,180,000,000 in horse sales.
The world headquarters of Lexmark International is located in the MSA as well as IBM and Hewlett-Packard facilities, and a thriving biosciences community.
The health-care industry is the leader in economic growth in the area with all three major hospitals in Lexington planning or has started expansions at their current facilities. The UK Chandler Medical Center and 7 other colleges in the area are involved in medical related instruction.
Higher Education: Institutions of higher learning typically are not as vulnerable to economic downswings, and they help to provide an area with a more solid employment base. The area is anchored around the University of Kentucky, and there are 10 colleges or universities within 40 miles of Lexington. In this area over 65,000 students are enrolled and graduating 12,000 annually. Census data for 2007 ranks Lexington as the 11th most highly educated city in the nation for cities with a population over 250,000. Also when high school graduates are considered Lexington is the second most educated workforce in the nation with Seattle, Washington ranking first.
Recreational and Regional Attractions Recreational facilities and regional attractions enhance an area’s quality of life and generate additional employment. The Lexington MSA offers numerous historical, cultural, and recreational options for both residents and visitors.
Lexington is home to many thriving arts organizations including a professional orchestra, two ballet companies, professional theatre, and several museums including a basketball museum, several choral organizations and a highly respected opera program at the University of Kentucky. In addition, there are several events and fairs that draw people from throughout the Bluegrass.
Mayfest is a free outdoor festival that takes place annually over Mother’s Day weekend. Held in Gratz park between the Carnegie Center and Transylvania University, the festival typically features up to 100 art and craft booths, live entertainment throughout the weekend, food, children’s activities, adult activities and literary events, free carriage rides, a traditional Morris and Maypole dance and various demonstrations. Taking part the first full weekend of June is the Festival of the Bluegrass, Kentucky’s oldest bluegrass music festival. It includes three stages for music and a “music camp” that teaches the bluegrass music to school children. Also in June is the popular Broadway review presented by UK Opera Theatre, “It’s A Grand Night for Singing!”
Lexington has over 100 parks ranging in size from the 0.20-acre Smith Street Park to the 659-acre Masterson Station Park. There are also six public golf courses at Avon, Kearney Links, Lakeside, Meadowbrook, Tates Creek and Picadome.
Lexington is home to two historic horse racing tracks. Keeneland; which has sported live races in April and October since 1936, and The Red Mile Harness Track, the oldest horseracing track in the city, and second oldest in the nation. The Kentucky Horse Park, located along scenic Iron Works Pike, is a relatively late-comer to Lexington, opening in 1978. It is a working horse farm and an educational theme park.
The University of Kentucky is by far Lexington’s most popular sports team. The school fields 22 varsity sports teams, most of which compete in the Southeastern Conference. The Kentucky Men’s Basketball team has won 8 NCAA Championships and is the winningest program in college basketball history. Lexington’s only other collegiate team; the Transylvania University Pioneers compete in NCAA Division III athletics. Lexington is also home to the Lexington Legends, a Class A minor league affiliate of the Houston Astros.
There are numerous parks and attractions in Winchester, the site of the subject as well. The Bluegrass Heritage Museum is located in Winchester. Housed in the historic Guerrant Mission Clinic and Hospital in Winchester, the Bluegrass Heritage Museum examines regional history through engaging and innovative exhibits and the Leeds Center for the Arts was built in 1925, and renovated in the mid 1980’s. This theater offers cultural and community events including plays, musicals, concerts, classes, seminars and children’s programming.
ECONOMIC FORCES
Economic forces are the fundamental relationships between current and anticipated supply and demand and the economic activities in which the population participates in order to satisfy its wants, needs, and demands through its purchase power.
Sector Employment
The chart below compares the employment composition of the Lexington area with that of the state of Kentucky. Total employment is broken down into the following sectors: Mining/Logging/Construction, Manufacturing, Trade/Transportation/ Utilities (TTU), Information, Financial, Services, Education/Health Services, Leisure/Hospitality, Other Services, and Government.
Overall, the sector employment is balanced and the percentage sector employment of the Lexington MSA is similar to that of the state.
Industries
The major regional employers are listed below in which 9 of the top 11 top regional employers are located within the Lexington MSA. The major employers are consistent with the sector employment for the area.
Unemployment
The following chart shows the historical unemployment rates for the MSA, state, and US from 2006 to 2018. As shown, the unemployment rate for the MSA historically has been lower than the rates of the state and nation. The MSA’s unemployment, as well as the State and national unemployment levels have been decreasing since 2010.
ENVIRONMENTAL FORCES
Environmental forces are both natural and manmade forces that influence real property values. Some environmental forces include climactic conditions, natural barriers to future development, primary transportation systems, and the nature and desirability of the immediate areas surrounding a property.
Climate
The climate of the area is comparable to other communities in the Midwest region. Generally, these areas are known for their seasonal climate, with warm weather in the summer and cold weather in the winter.
Transportation
Two interstate highways run through Lexington and its suburbs. I-75 is a north-south limited access highway that passes through the eastern portion of Lexington and connects the city with Cincinnati to the north and Knoxville to the South. I-64 is an east-west limited access highway that passes through the northern Lexington area and connects the city with Louisville to the west and Huntington, West Virginia to the east.
The Transit Authority of the Lexington-Fayette Urban County Government or LexTran, is a public bus transportation system servicing Lexington. It operates seven days a week on eight bus routes from 5:30 a.m. to 12:30 a.m. In addition to mainline and paratransit, LexTran contracts with the University of Kentucky and operates four routes around the campus. It also runs two routes to the Bluegrass Community and Technical College campuses. LexTran does not provide service outside the Lexington city proper due to limited funding sources.
The Bluegrass Airport (Code LEX) is a public airport that is located in Fayette County. There are approximately 65 direct and nonstop flights daily from the two runways of Blue Grass Airport. Seven major airlines operate connection service at Blue Grass, including Allegiant Air, American Eagle Airlines, Delta Air Lines, Continental Express, Northwest Airlink, United Express, and US Airways Express. The airport is located about 5 miles west of the Lexington CBD.
GOVERNMENTAL FORCES
Governmental, political and legal actions at all levels have an impact on property values. The legal climate of a particular time or in a particular place may overshadow the natural market forces of supply and demand.
OUTLOOK
Our review of the above data indicates that the Lexington MSA has historically enjoyed a relatively stable economy, evidenced by a historical pattern of increasing income levels, a steady creation of new jobs, and relatively low unemployment rates. However, Lexington, like rest of the nation has recently experienced set-backs due the national and global recession. The area has experienced increasing foreclosures, increasing unemployment, and has had other recessionary effects. This has mostly passed, but the long-term lingering effects of this economic calamity continue as both the city and country move forward into the future.
In comparison to the greater Midwest Region, the Lexington economy is faring better than comparable markets. Lexington saw smaller growth and a less intense boom prior to the recession that started to take its effects in late 2007 and 2008 through now. And because the area was not over-built to the degree as many other parts of the Midwest and Nation, the decline has not been as drastic as seen elsewhere.
In conclusion, the economic outlook for the Lexington MSA is favorable for the long term overall success of the subject. In the short term, increased unemployment, increased foreclosures, tighter lending standards, and more risk averse buyers have led to higher capitalization rates, less new development, increased foreclosures, and overall decreased property values. The fact that unemployment levels are improving should serve to help spur more activity for the real estate market and lead to future appreciation; however, the real estate market typically lags other more liquid financial markets. Housing is a primary economic indicator and historically low interest rates have spurned growth in the housing sector while apartment vacancies have declined and rents have shown a marked increase. The economic trends in the Lexington, KY (MSA) suggest that investment and economic activity is increasing and should continue to do so into the future.
Appraisal Regional Analysis
FRANKLIN COUNTY KENTUCKY
The subject not located within an MSA; therefore, it is influenced in a general manner by the economic, political, physical and social characteristics of the Lexington-Fayette Metropolitan Statistical Area (MSA). An MSA is a geographic area with a significant population nucleus, along with any adjacent communities that have a high degree of economic and social integration with that nucleus. The Lexington-Fayette Metropolitan Statistical Area covers six counties in the state of Kentucky. These counties include Fayette, Scott, Woodford, Bourbon, Clark, and Jessamine.
Lexington is located in the central portion of the State of Kentucky. Lexington is located 70 miles west of Louisville, 20 miles southeast of Frankfort, the state Capital of Kentucky, 70 miles south of Cincinnati, Ohio, 150 miles west of Charleston, West Virginia, and 150 miles north of Knoxville, Tennessee.
The value of real property is influenced by the interaction of four basic forces. These forces include social trends, economic circumstances, environmental conditions, and governmental controls and regulations. The interaction of these four forces influences the value of every parcel of real estate in the market.
The tables and charts presented throughout the following pages include additional data that help tell the story about Louisville’s economy.
A presentation of the Lexington MSA is presented on the following page.
LEXINGTON-FAYETTE, KENTUCKY MSA MAP
SOCIAL TRENDS
Social forces are trends that are exerted primarily through population characteristics. Real property values are affected not only by population changes and characteristics, but also by various forms of human activity.
Population and Area Growth
Population growth trends influence employment growth, income levels, and many other key demand parameters analyzed in determining commercial real estate productivity. The table below shows the population in the Lexington MSA in comparison with the State of Kentucky and the United States. Historical data, as well as projections, are shown. The MSA population is steadily increasing faster than both the state of Kentucky and the United States. These trends are expected to continue as indicated by the 2022 population projections. The chart is shown below.
Local Economy: The Bluegrass is the financial, educational, retail, health care, service, and cultural center of Central Kentucky. Lexington-Fayette County is the merged urban county government centered among an eight county alliance, which represents the Bluegrass Region. The local economy is centered on the horse industry, healthcare, technology, and higher education. In 2014 there was more than $1,180,000,000 in horse sales.
The world headquarters of Lexmark International is located in the MSA as well as IBM and Hewlett-Packard facilities, and a thriving biosciences community.
The healthcare industry is the leader in economic growth in the area with all three major hospitals in Lexington planning or has started expansions at their current facilities. The UK Chandler Medical Center and 7 other colleges in the area are involved in medical related instruction.
Higher Education: Institutions of higher learning typically are not as vulnerable to economic downswings, and they help to provide an area with a more solid employment base.
The area is anchored around the University of Kentucky, and there are 10 colleges or universities within 40 miles of Lexington. In this area over 65,000 students are enrolled and graduating 12,000 annually. Census data for 2007 ranks Lexington as the 11th most highly educated city in the nation for cities with a population over 250,000. Also when high school graduates are considered Lexington is the second most educated workforce in the nation with Seattle, Washington ranking first.
Recreational and Regional Attractions
Recreational facilities and regional attractions enhance an area’s quality of life and generate additional employment. The Lexington MSA offers numerous historical, cultural, and recreational options for both residents and visitors.
Lexington is home to many thriving arts organizations including a professional orchestra, two ballet companies, professional theatre, and several museums including a basketball museum, several choral organizations and a highly respected opera program at the University of Kentucky. In addition, there are several events and fairs that draw people from throughout the Bluegrass.
Mayfest is a free outdoor festival that takes place annually over Mother’s Day weekend. Held in Gratz park between the Carnegie Center and Transylvania University, the festival typically features up to 100 art and craft booths, live entertainment throughout the weekend, food, children’s activities, adult activities and literary events, free carriage rides, a traditional Morris and Maypole dance and various demonstrations. Taking part the first full weekend of June is the Festival of the Bluegrass, Kentucky’s oldest bluegrass music festival. It includes three stages for music and a “music camp” that teaches the bluegrass music to school children. Also in June is the popular Broadway review presented by UK Opera Theatre, “It’s A Grand Night for Singing!”
Lexington has over 100 parks ranging in size from the 0.20-acre Smith Street Park to the 659-acre Masterson Station Park. There are also six public golf courses at Avon, Kearney Links, Lakeside, Meadowbrook, Tates Creek and Picadome.
Lexington is home to two historic horse racing tracks. Keeneland; which has sported live races in April and October since 1936, and The Red Mile Harness Track, the oldest horseracing track in the city, and second oldest in the nation. The Kentucky Horse Park, located along scenic Iron Works Pike, is a relatively late-comer to Lexington, opening in 1978. It is a working horse farm and an educational theme park.
The University of Kentucky is by far Lexington’s most popular sports team. The school fields 22 varsity sports teams, most of which compete in the Southeastern Conference. The Kentucky Men’s Basketball team has won 8 NCAA Championships and is the winningest program in college basketball history. Lexington’s only other collegiate team; the Transylvania University Pioneers compete in NCAA Division III athletics. Lexington is also home to the Lexington Legends, a Class A minor league affiliate of the Houston Astros.
There are numerous parks and attractions in Winchester, the site of the subject as well. The Bluegrass Heritage Museum is located in Winchester. Housed in the historic Guerrant Mission Clinic and Hospital in Winchester, the Bluegrass Heritage Museum examines regional history through engaging and innovative exhibits and the Leeds Center for the Arts was built in 1925, and renovated in the mid 1980’s. This theater offers cultural and community events including plays, musicals, concerts, classes, seminars and children’s programming.
ECONOMIC FORCES
Economic forces are the fundamental relationships between current and anticipated supply and demand and the economic activities in which the population participates in order to satisfy its wants, needs, and demands through its purchase power.
Sector Employment
The chart below compares the employment composition of the Lexington area with that of the state of Kentucky. Total employment is broken down into the following sectors: Mining/Logging/Construction, Manufacturing, Trade/Transportation/ Utilities (TTU), Information, Financial, Services, Education/Health Services, Leisure/Hospitality, Other Services,
and Government.
Overall, the sector employment is balanced and the percentage sector employment of the Lexington MSA is similar to that of the state.
Industries
The major regional employers are listed below in which 9 of the top 11 top regional employers are located within the Lexington MSA. The major employers are consistent with the
sector employment for the area.
Unemployment
The following chart shows the historical unemployment rates for the MSA, state, and US from 2006 to 2018. As shown, the unemployment rate for the MSA historically has been lower than the rates of the state and nation. The MSA’s unemployment, as well as the State and national unemployment levels have been decreasing since 2010.
ENVIRONMENTAL FORCES
Environmental forces are both natural and manmade forces that influence real property values. Some environmental forces include climactic conditions, natural barriers to future development, primary transportation systems, and the nature and desirability of the immediate areas surrounding a property.
Climate
The climate of the area is comparable to other communities in the Midwest region. Generally, these areas are known for their seasonal climate, with warm weather in the summer and cold weather in the winter.
Transportation
Two interstate highways run through Lexington and its suburbs. I-75 is a north-south limited access highway that passes through the eastern portion of Lexington and connects the city with Cincinnati to the north and Knoxville to the South. I-64 is an east-west limited access highway that passes through the northern Lexington area and connects the city with Louisville to the west and Huntington, West Virginia to the east.
The Transit Authority of the Lexington-Fayette Urban County Government or LexTran, is a public bus transportation system servicing Lexington. It operates seven days a week on eight bus routes from 5:30 a.m. to 12:30 a.m. In addition to mainline and paratransit, LexTran contracts with the University of Kentucky and operates four routes around the campus. It also runs two routes to the Bluegrass Community and Technical College campuses. LexTran does not provide service outside the Lexington city proper due to limited funding sources.
The Bluegrass Airport (Code LEX) is a public airport that is located in Fayette County. There are approximately 65 direct and nonstop flights daily from the two runways of Blue Grass Airport. Seven major airlines operate connection service at Blue Grass, including Allegiant Air, American Eagle Airlines, Delta Air Lines, Continental Express, Northwest Airlink, United Express, and US Airways Express. The airport is located about 5 miles west of the Lexington CBD.
GOVERNMENTAL FORCES
Governmental, political and legal actions at all levels have an impact on property values. The legal climate of a particular time or in a particular place may overshadow the natural market forces of supply and demand.
OUTLOOK
Our review of the above data indicates that the Lexington MSA has historically enjoyed a relatively stable economy, evidenced by a historical pattern of increasing income levels, a steady creation of new jobs, and relatively low unemployment rates. However, Lexington, like rest of the nation has recently experienced set-backs due the national and global recession. The area has experienced increasing foreclosures, increasing unemployment, and has had other recessionary effects. This has mostly passed, but the long-term lingering effects of this economic calamity continue as both the city and country move forward into the future.
In comparison to the greater Midwest Region, the Lexington economy is faring better than comparable markets. Lexington saw smaller growth and a less intense boom prior to the recession that started to take its effects in late 2007 and 2008 through now. And because the area was not over-built to the degree as many other parts of the Midwest and Nation, the decline has not been as drastic as seen elsewhere.
In conclusion, the economic outlook for the Lexington MSA is favorable for the long term overall success of the subject. In the short term, increased unemployment, increased foreclosures, tighter lending standards, and more risk averse buyers have led to higher capitalization rates, less new development, increased foreclosures, and overall decreased property values. The fact that unemployment levels are improving should serve to help spur more activity for the real estate market and lead to future appreciation; however, the real estate market typically lags other more liquid financial markets. Housing is a primary economic indicator and historically low interest rates have spurned growth in the housing sector while apartment vacancies have declined and rents have shown a marked increase. The economic trends in the Lexington, KY (MSA) suggest that investment and economic activity is increasing and should continue to do so into the future.
DATE OF ANALYSIS
MARCH 12, 2007
PREPARED BY
DAVID J. GLAUBER, MAI
PRESIDENT
AMERICAN APPRAISERS CORPORATION
AMERICANAPPRAISERS.NET
10507 WATTERSON TRAIL
LOUISVILLE, KY 40299
PREPARED FOR
ECONOMIC DEVELOPMENT DEPARTMENT
444 SOUTH 5TH STREET
LOUISVILLE, KY 40202
March 16th, 2007
Economic Development Department
444 South 5th Street
Louisville, KY 40202
Dear Ms :
I have prepared a brief report, in relation to our phone conversation regarding the re-development of West Louisville. I am a commercial real estate appraiser in Louisville, but provide appraisal services nationally. Our firm has appraised property in 9 states within the past two years. We are currently involved in a market study of Fort Knox, relating to the possible release of some of the base property for independent development. This is a result of the Base Realignment and Closure (BRAC) program that is expected to create a net gain of 5,000 new permanent employees at Fort Knox. We have also performed many market studies in relation to specific projects, such as downtown residential condominium projects, subdivisions, CBD office towers, etc.
Over the years I have appraised countless industrial and retail properties in West Louisville. With each appraisal comes my analysis of the pros and cons of each site. Consequently, I have accumulated an enormous amount of professional observations which have culminated into a comprehensive plan to re-develop West Louisville.
I have prepared a brief description of the most important aspect of the plan, which will entail a new design of the corridors throughout the entire neighborhood. The later phases of the plan to include the industrial contamination and residential development are only briefly mentioned, as they are totally dependant on the creation of the corridors.
I have attached my qualifications at the back of this outline. If you have more questions or would like me to present this to other groups I would be happy to do so.
Sincerely
David J. Glauber, MAI
HISTORY OF WEST LOUISVILLE West Louisville was developed in the late 1800’s and early 1900’s as a working class neighborhood that provided labor to the numerous industrial facilities along the river and scattered throughout the area. There were no cars then and people had to walk to work or perhaps ride a trolley if one existed. Horses were likely only uses by more affluent workers that could afford to stable them. Consequently, the houses were inexpensive and close together in order to keep the density high and the walking commute short. As this situation changed with the addition of automobiles, industry moved further away. Interstates were built with the goal of moving traffic from one major location to another. When I-264 was built, it should have been a boon to West Louisville. However, poorly conceived interchanges left the area sealed off from the rest of the county, and the area began to decline and has continued unabated since the 1950’s despite millions of public dollars spent on re-vitalization efforts. The poor interstate access is further aggravated by large facilities such as Phillip Morris and Brown Foreman extending their facilities across city streets as well as railroad lines blocking streets. The remaining streets that still have their one-way status from a century ago, now only cause greater traffic problems.
The overall result is a huge resource that has been paralyzed for many years by poor access. Any driving experience in this neighborhood is frustrating and often results in getting lost. To a semi truck driver, this is simply not acceptable.
This re-development plan focuses entirely on creating corridors that will free the area from these traffic barriers. This report only discusses the major corridors, although there is also much to be done on the surface streets in order to provide easier traffic flow throughout the residential sections as well.
CORRIDORS FIGURE 1
Figure 1 identifies four potential east/west corridors that would effectively connect I-65 on the east side to I-264 on the west side of Louisville. These four corridors will be explained in more detail by order of importance.
BROADWAY Broadway is by far the most important corridor. Currently, Broadway extends all the way from I-65 to I-264 with no interruptions or barriers. However, when it reaches I-264, there is no interchange. In order to access I-264, the driver must cross under I-264, turn right on 34th Street, go north approximately four blocks and take a right on a one-way street known as River Park Drive. If the driver misses the on ramp, they must work their way around the block to another one-way street to re-approach on Mohammad Ali Blvd. If the vehicle is in a semi truck, the railroad overpass is too low to drive under and the truck is now paralyzed. He cannot back up, there is not enough room to turn around, and he can’t go forward because of the low overpass.
Broadway is arguably the most important street in downtown Louisville with a broad thoroughfare and large beautiful houses. Broadway currently carries around 28,000 vehicles per day, east of 7th Street when CBD vacancy is stabilized. The traffic falls to 17,000 at the Dixie Highway intersection and is not measured beyond that point, due to such low traffic counts.
This problem can be remedied with a new interchange onto I-264. The economic impact of this interchange would be dramatic. The affect would immediately create a focal point for retail as well as provide access to existing industrial buildings.
Additionally, many CBD office workers live in Indiana. Instead of crossing the city, they drive home via I-65, and go through spaghetti junction in order to access I-64. If Broadway were an open corridor, much of the I-64 traffic would return home through west Louisville. This would effectively reduce the pressure on spaghetti junction in addition to bringing fresh demand into the west. Given the enormous economic impact this interchange would create, it is considered priority 1.
VIRGINIA AVENUE, Virginia Avenue, which is know as Oak Street on the east side of the city is an existing corridor. Although this corridor is not particularly important, it does represent the easiest corridor to fix. The reason is that it runs from I-65 on the east to I-264 on the west without interruption. Additionally, there is already a usable interchange at both ends. The only modifications needed in order to make this an effective corridor, is to make it two-way. Currently this corridor is two-way on the east side, but turns into one-way on the west side. I would also suggest that the same street name be used from one end to the other.
The potential issue associated with making this corridor two-way involves street parking. Currently, residents park on both sides of the street, which allows two driving lanes. Although it is certainly possible to have two-way traffic on two lanes, it may not carry the volume of traffic required, and will be further disrupted by traffic making left turns. Therefore, the corridor will be much more usable if a turn lane can be added. If parking is eliminated on the street, it will make the corridor four lanes. The street parking could be replaced along the alley in the rear of these same houses. The alley right-of-way could be widened, paved and lined for angle parking, which would not only replace the existing street parking, but would be significantly more efficient thus giving the residents a net gain in parking, with the added advantage of having their vehicles sheltered from traffic on the street. The only exception to this is a few blocks between Dixie Highway and 26th Street where the yards are not deep enough to allow the alley to be widened to add parking. These houses are also lower quality structures that have also been poorly maintained. Therefore, buying the houses outright and razing them would likely be the best option.
Due to the ease of converting Virginia Avenue / Oak Street to a corridor, it is given priority two. The creation of parking behind the houses could come in a later phase.
ALGONQUIN PARKWAY This corridor is a major thoroughfare that includes a grand thoroughfare, with large houses well off the street under mature trees. It is truly a showpiece of West Louisville. This effect is enhanced by the one success story of West Louisville’s revitalization, which is Park Duval. The problem is, once again, a lack of an interchange on the west end. Algonquin also fizzles into oblivion at Taylor Blvd on the east.
The solution for this corridor is expensive. However, the potential enhancement of the area makes it a worthwhile endeavor. The first step is to make an interchange at I-264. Currently, the most attractive street in the neighborhood has to exit at Bells Lane, which is a very unattractive area and the re-entry ramp is even worse.
The second step is to extend Algonquin, where it can connect with either Cardinal Blvd or Eastern Parkway. In either case, the interchange on the I-65 end will also need to be enhanced.
DIXIE HIGHWAY All the corridors spoken of thus far have been east/west routes. However, Dixie Highway is another squandered resource. South of I-264, Dixie Highway is a thriving corridor, with extremely high traffic volume and very high land value. North of I-264, Dixie Highway becomes a run down corridor with abandoned buildings and very low land value. That being said, Dixie does maintain some of its appeal through Shively, and then it becomes extremely rough until it dead ends at Broadway. The reason for its lack of appeal is that it doesn’t go anywhere on the north end. Like many of the West Louisville corridors, it just fizzles out.
The north bound traffic can find its way to the I-64 ramp at 22nd Street by following Dr. Hodge Street. This is a very poor corridor with Dr. Hodge Street running one-way north and 22nd Street running one-way south. There is no advantage to having these streets be one-way and the interchange itself is very complicated.
This corridor could be untangled by re-routing Dixie Highway at Algonquin Street and connecting it to Dr Hodge Street or 22nd Street and running it all the way to the 22nd Street interchange. The street name would be changed to Dixie, so that a clear uninterrupted corridor was easily identifiable by drivers who are not familiar with the area. The interchange would also be re-named to Dixie Highway.
MARKET STREET OR MOHAMMED ALI BLVD These corridors will not have the dramatic impact the previously mentioned streets will. They are mentioned only because they are existing streets that extend the length of the city without interruption.
RESULT OF NEW CORRIDORS The result of the new corridors would have a profound affect on the entire neighborhood.
INDUSTRIAL There would be an immediate resurgence of industrial activity. There is an enormous supply of unused industrial space in West Louisville. The buildings were built in the late 1800’s and early 1900’s. Consequently, the functional design does not meet current standards. However, that is not why the buildings are vacant. The main reason for the high vacancy is poor access. Currently, there are no good corridors through West Louisville and a driver of a semi truck can easily get lost and not be able to turn around due to a multitude of obstacles, such as pointless one-way streets, dead end streets, low Railroad overpasses, etc. The new corridors would make access in and out easily identifiable and reliable, even for drivers unfamiliar with the area.
INDUSTRIAL CONTAMINATION Another aspect that holds back the re-use of old industrial buildings is the contamination that remains from previous uses. We also have some suggestions on how to alleviate this risk to a buyer, making it safe for someone to purchase an old facility without the risk of cleanup cost. I have not pursued it in this report in order to keep the focus on corridors.
RETAIL The second affect would be retail. When office vacancy is low in downtown Louisville, the traffic count is circa 28,000 cars per day on Broadway, east of 7th Street. This drops to 17,000 at the Dixie Highway intersection and is not measured beyond that point due to the substantial drop in traffic. Additionally, there are currently 56,500 vehicles per day crossing Broadway as they travel I-264. Many of these travelers work at UPS and the Fern Valley Road Ford Plant and are driving home to Indiana. There is no interchange for them to stop and get gas or refreshments during the entire trip across west Louisville. Dixie Highway is the only reliable interchange, and the traffic at this interchange is so heavy that getting off and on is not feasible. By having an organized ramp at Broadway and Algonquin that can be easily understood and navigated, travelers would exit this ramp in search of gas and refreshments. Therefore, a retail focal point would emerge, which would immediately result in a convenience / fuel store, followed by other competing stores. These would be followed by fast food. With a retail anchor on the west end of Broadway, retail would then fill the gap that currently exists between the CBD and I-264. This would allow such projects that are currently being considered in the Phillip Morris plant the chance of success.
RESIDENTIAL The residential sector should be considered last. You cannot force people to live in an area that the market pushes them away from. The current method is to buy an old house, raze it and build another identical house on the site. This changes nothing. The product is the same, the people are the same, and the environment is the same. This is repeating the same mistake over and over again, with the expectation of a different outcome.
West Louisville has had an oversupply of houses for many years due to a lack of demand. Consequently, houses sit vacant and are abandoned. As of March 6/2007, there were 973 houses currently for sale by Real estate agents. 77 homes had sold over the past 30 days, with a median selling price of $36,000. This clearly illustrates the over supply of housing. Therefore, when a major housing project such as Parkhill is considered for demolition, critics worry about displacement of residents. This is an unfounded concern, as there is an overabundance of housing in the neighborhood.
If the corridors are repaired and traffic can move freely, the industrial sector will re-enter the area, bringing jobs. Additionally, long vacant buildings will be occupied, eliminating a constant source of crime. The retail that will also enter the market will be another, albeit smaller source of jobs. With employment comes income for residents and demand for housing close to work. The demand will cause a decrease in the supply of houses. With the reduction in supply, the increasing demand will obviously increase housing prices. With increased housing prices, the houses will start trending back to owner occupied houses rather than renters. The synergy continues until a fully revitalized and stable community exists.
QUALIFICATIONS OF DAVID J. GLAUBER, MAI
EDUCATION
University of Louisville, Post Graduate work 6 hours
University of Louisville, Bachelor of Finance, 1991
Carroll County High School , 1986
Appraisal Institute
-Appraisal Principles, Methods and Techniques, University of .N.C, 1988
-Appraisal Principles, Methods and Techniques, part 2, Dartmouth college 1988
-Residential Appraisal Techniques, University of Portland, 1989.
-Report Writing, Chicago , IL, 2001
-Advanced Income Capitalization, University of Indiana Bloomington, IN 2001
-Advanced Sales and Cost, Indianapolis, IN 2001
-Advanced Applications, Chicago, IL, 2002
-Standards of Professional Practice Part A and B, 2002
-Highest and Best Use Analysis, Tamp FL, 2002
-Comprehensive Exam Appraisal Workshop, Irvine TX 2002
-Evaluating Commercial Construction, Columbus, OH 5/2004
-Evaluating Residential Construction 5/2005
-Subdivision Analysis 2007
IDS Financial Services
-Financial Planning Workshop, 80 hours, Minneapolis Minnesota, 1992
-NASD Series 7 license Workshop, 40 hours, St. Xavier University,
Louisville Board of Realtors
-Uniform Standards of Professional Appraisal Practice, Louisville KY, 1997
-Small Income Properties
-Farm and Rural Property Appraisal
APPRAISAL EXPERIENCE
American Appraisers Corp. President / Owner 2005
Roppel Appraisal Service: Commercial Real Estate Appraiser 2000-2004
Lewman-Miller Appraisal Co: Commercial Real Estate Appraiser 1999
Tamplin & Company: Commercial Real Estate Appraiser 1999
Moore & Associates: Residential Real Estate Appraiser 1997
Allgeier Company: Commercial Real Estate Appraiser 1995
McDonogh & Associates: Commercial Real Estate Appraiser 1987-1991
Glauber Real Estate: Residential Real Estate Appraiser 1986
FINANCIAL EXPERIENCE
American Express Financial Advisors: Financial Advisor 1991-1995
Safetran Systems: Financial Analyst 1997
PROFESSIONAL AFFILIATIONS
Appraisal Institute, Member, # 12140 Certified General Indiana (CG 40300051)
Certified General Kentucky (CG 2506)
Knights of Columbus
