$400,000 investment to return to Pike Co.; chemical plant moves to Floyd Co.

PIKE CO., Ky. (WYMT) - Officials with the Pike County Fiscal Court are moving forward with a plan to get back a 400,000 dollar investment.

In 2014 the Pike County Fiscal Court invested 400,000 dollars in RCL Chemical, a company that plans to convert natural gas into synthetic liquids.

At the time when the Pike County Fiscal Court awarded the 400,000 dollars, RCL Chemical planned to build their company in Pike County.

Two years later, RCL Chemical announced they were moving their company to Floyd County.

Many on the Pike County Fiscal Court expressed concerns over the move.

"When I came on there was a big controversy over the 400,000 dollars and the plant moving to Floyd County," said Pike County Deputy Judge-Executive, Herbie Deskins.

Deskins said the Pike County Fiscal Court explored the option of suing RCL Chemical, but later decided it was not the best option.

"I felt that if we sued at the time and shut all the plans down that were going on we were just fighting against ourselves," said Deskins.

Earlier this month RCL Chemical announced they partnered with Y2X Infrastructure to secure $325 million for the first of three facilities.

The initial funds will go to the engineering, environmental permitting and site preparation for the facility.

With the funds secured, the Pike County Fiscal Court worked a deal with RCL Chemical to get back the 400,000 dollars.

"We worked it out with the entrepreneurs so that they could pay us 100,000 dollars as soon as they got their financing and then pay the other 300,000 in time," said Deskins.

Officials in Pike and Floyd County believe RCL Chemical will benefit the entire region.

"It's not just Floyd County it could have wide-ranging effects for all of Eastern Kentucky because of the other ancillary jobs that will be tied to this," said Floyd County Judge-Executive, Ben Hale.

Deskins said he expects the first payment to come by the end of the month.



 
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