The closure of the Blue Oval esque plant in Glendale meant layoffs for workers and disappointment for state lawmakers.

The Kentucky Senate president has described the situation as a, quote, quagmire for the state, which invested hundreds of millions of dollars into the venture.

But as our June Lefler reports, a state economic official told state lawmakers today that the situation is under control.

More in tonight's legislative update.

Kentucky put up $250 million for the Blue Oval venture, with the goal of creating 5000 jobs.

But if production ceases and all workers are laid off.

There is no argument.

And there's no question about the messaging we have provided.

You shall repay to the state $250 million.

And we have had it, and we've always had it in a written, legally binding document.

That money offered as a loan came with these stipulations.

The guaranteed threshold in the loan agreement was to have 2500 jobs.

They also had to have hourly compensation of $26.41 per hour.

And the first threshold of having 5000 jobs was to be achieved in 2030.

And as you also see, we calculated escalating wages to be part of the compliance, not just a set beginning wage, but actual escalating wages.

But Kentucky's economic development secretary says he's not asking the companies to pay up quite yet.

Ford Motor Company has a far better Rolodex than I do.

And Ford Motor Company has internal operations that they can bring more jobs and more investment.

I want to make sure that that Rolodex and that technical knowhow and that global business and if you will, the carrot and stick approach that we have been laying out.

The carrot is let's keep working together.

But the stick is you have to repay us.

And if not, and you don't create more jobs, then you're going to repay, maybe even on an accelerated basis.

That thinking may be paying off, though.

The Glendale based EV plant will close.

Ford has promised to use that facility for another venture energy storage for data centers.

Despite all the investment that has been made, Ford has agreed to invest $2 billion to install additional equipment, different kinds of equipment to enter the energy storage solutions business and that's a 2100 plus job commitment that they have made.

This testimony came before the Senate Appropriations and Revenue Committee today.

You've been a tireless advocate prior to this, even being a project that existed.

And then through the project and then you were, very diligent in, in jumping on the bad news that we got to try to mitigate the impact.

So we do appreciate that.

And I know that your efforts are certainly ongoing.

I think the committee remains open.

I mean, Ford has been a good partner to the Commonwealth for a long time, and their secondary and tertiary impacts are well known.

And we expect that that relationship will continue.

But there is an obligation that this committee has to the taxpayers of the Commonwealth that we want to ensure is honored.

One part of the initial investment that's still up for discussion, what to do with the training site?

The facility is on Elizabethtown Community and Technical Colleges campus.

For Kentucky Edition, I'm Gene Leffler.

Thank you.

Jim.

1600 workers at the Blue Oval escape plant are set to be laid off on February the 14th.