What litigation does Williamstown face?

Editor’s note: The beginning of this article appeared on the front page of the March 14 issue, but the remainder was not included in the paper.

Midwest Grain Product Ingredient (MGP or MGPI) has been in Williamstown since 2016. Few issues were raised with their original bourbon barrel storage warehouses until an additional six warehouses were proposed for a site on Conrad Lane.

In the wake of events surrounding the proposed whiskey warehouses on Conrad Lane this fall, however, MGP has filed a lawsuit against the city, Grant County Planning and Zoning and Mayor Mark Christopher.

Following is a general timeline intended only as a reference; it is not a detailed or legal outline.

Sept. 2016: Performance Pipe closed and the site was added to the “Select Kentucky” list of available business sites.

2017: MGP, investigated and approached the City of Williamstown; with some changes, they could warehouse whiskey at the facility. $10,000,000 in Industrial Revenue Bonds (IRB) were needed. MGP rebuilt the facility and added a second warehouse.

Oct. 24, 2018: MGPI sold three parcels in the Williamstown Industrial Park to the city, enabling the IRB’s to be created. Warehousing of whiskey barrels began on Helton Road.

2020: After purchasing land from Rick Skinner, MGP expanded, adding three more warehouses on Baton Rouge Road.

March 31, 2021: MGP deeded the Baton Rouge property to the city. This action enabled $30,000,000 in IRBs to be created.

Oct. 2023: MGP proposed expansion onto Conrad Lane. A $70,000,000 IRB was approved by the city. MGPI submitted a grading plan for a portion of Conrad Lane approved by the Grant County Planning Commission.

Dec. 2023: The city received a formal complaint “disputing the permitted used (sic) of bourbon warehousing in the I-1 zoning” that challenged “the ability of the permitted use of stored aging bourbon barrels for the I-1 zoning on Conrad Lane.” MGPI submitted an overall grading plan for property on Conrad land that was reviewed but not brought before the commission for any action.

Dec. 22, 2023: The planning commission and county building inspector received a letter from the city requesting postponement of of anything pertaining to “site plans, grading plans, building permits” as the city was “looking into conditions put on the zone change and issues and concerns brought to the city concerning environment and use for the property on Conrad Lane.”

The commission had made the initial approval of the zone change with the added condition the city should put on that zone change “any company wishing to locate in this zone the City of Williamstown will conduct a thorough investigation with the view towards mitigating the effect of noise, odor or lighting that would adversely affect the quality of life and the surrounding neighborhood. Extreme care is to be exercised to ensure that any possible discharge from the premises does not adversely impact the quality of water in Grassy Creek and Lake Williamstown.”

Early Jan., 2024: MGPI submitted a site plan to the planning commission for seven (not six) warehousing buildings on Conrad Lane. The plan was forwarded to Williamstown Mayor Mark Christopher’s office.

Jan. 11, 2024: A civil case, MGPI vs Williamstown, was referred to “United States District Court Eastern District of Kentucky Northern Division at Covington” by United States District Judge David L. Bunning.

Jan. 19, 2024: The planning commission received a formal letter from Williamstown stating receipt of formal complaints concerning whether the I-1 zone determinations are proper for locating bourbon warehouses in Conrad Lane zoning.

The letter requested the “Commission to postpone any reviews or actions for bourbon warehouses on Conrad Lane until an official determination of the permitted use be made by the city.”

Jan. 22, 2024: Grant County Planning Commission paused review until Williamstown makes their determination.

Feb. 12, 2024: A civil case titled “MGPI of Indiana, LLC v. City of Williamstown, KY et al” was filed.

The defendents named are: “City of Williamstown, KY, Williamstown City Council, Kim Crupper, Greg Middleton, Robert Perry, Gina Austin Smith, Payson Payne, John Coleman, Grant County Planning Commission, Marlon Kinsey, Carl King, Dan Bates, Tim Mann, Jason Dunaway, Katie McClafferty, Billy Hill, Carol Edmondson, Nancy Duley, Darrin Spahr, Diane Olberding and Mayor Mark Christopher.”

Civil Counts listed in Case number 2:24-ocv-23-DLA-CJS:

I. Civil action for deprivation of rights

II. Breach of Contract

III. Promissory Estoppel

IV. Breach of Covenant of Good Faith and Fair Dealing

V. Grant County Planning Commission’s Jan. 22, 2024, action constitutes an improper moratorium

VI. Defendants’ actions constitute a regulatory taking

VII. Declaration of rights

VIII. Injunctive relief

IX. Punitive damages (to be determined at trial)

On this date, a “DISCLOSURE STATEMENT by MGPI of Indiana, LLC identifying Corporate Parent MGPI Ingredients, Inc. for MGPI of Indiana, LLC,” as well summons’ were issued to “All Defendants and returned to counsel electronically for service. The attached documents were:

• Ordinance 2021-21,

• B-PC Minutes 9-29-21,

• Mark Christopher Letter to MGPI 9-22-23,

• Ordinance 2023-14,

• Water Service Agreement,

• Christopher Letter to MGPI 11-7-23,

• Stop Work Order,

• Christopher Letter to PC 12-22-23,

• Christopher Letter to MGPI 12-22-23,

• Ordinance 2023-15,

• Christopher Letter to PC 1-19-24,

• Civil Cover Sheet,

• Summons)(SLG)

Feb. 14, 2024: A notice of clerical error occurred which appeared to be a misspelling of Jayson Payne’s name as “Payson Payne.”

Feb. 28, 2024: Williamstown City Attorney Frank Wichmann filed a motion for an extension of time to file answer. It requested extending a response to the end of March.