New Focus on the “Old Jail Project”

The Jackson County Fiscal Court held its regular monthly meeting on March 12, 2026. Judge Shane Gabbard was unable to attend due to medical issues. The Magistrates nominated Dale Vaughn to chair/facilitate the meeting.

Tal Jones, with FOCUS (Five Original Counties United for Success), and SKED (Southeast Kentucky Economic Development) spoke with the fiscal court about the “Old Jail” Project. The goal of the project, which was approved in 2023, is to rehabilitate the “Old Jail” into a co-working space and a business incubator/accelerator. The project also had improvements designated for the city block where the “old jail” is located.

This project was championed by Congressman Hal Rogers and the project is funded as a “line-item” by a Congressional Earmark in the amount of $1,538,000 administered by HUD. The project will not require matching funds and will be “zero net cost” to the county. A congressional earmark is a legislative provision that directs a specific amount of money to a specific project, often benefiting a particular locality or interest. These earmarks are typically included in appropriations bills, allowing lawmakers to allocate funds for projects they support, sometimes with limited oversight or review.

Jones told the fiscal court that there had been a misunderstanding with the Cumberland Valley Area Development District (CVADD) regarding the requirements for the project's administration. The project has been delayed because CVADD was under the impression that the project administrator had to be a “certified HUD Grant Administrator” to administer the funds allocated for the project. This is often the case for HUD housing projects. However, this is a line-item project from Congress and does not require a certified HUD Grant Administrator. Jones told the court that he has verified this requirement with the HUD District in Louisville. SKED has administered “line item” projects such as this before and were told they were qualified to administer the funds.

Jones had two items to discuss with the fiscal court. The first item was a request to the fiscal court to re-advertise engineering/architectural services for the project. The project had been advertised once before but was stalled due to the misunderstanding regarding the certification requirements of the project administrator. The Jackson County Attorney, Ross Murray, was present at the fiscal court meeting and informed the magistrates that he saw no issues in readvertising the project. There are no obligations to hire, even if the project is advertised. In addition, the project costs have probably increased due to inflation since they were bid last.

The second item Jones brought before the court was a proposal to designate SKED as the project administrator. Jones did not ask for approval at this meeting. Jones indicated that within 30 days he will be providing the fiscal court with a contract that would designate them as the administrator of the project pending approval by the fiscal court.

The approved line-item funding has already set aside $30,760 for administrative fees. SKED is offering to administer the project for $30,000. Once again, this funding is contained in the grant and would not cost the county anything.

Jones proposed that SKED be paid in two $15,000 increments. The first increment would correspond to when the funding is opened up and the work begins. The second installment would correspond to the certification of the “Old Jail” as “Occupancy-Ready”.

The Magistrates agreed to readvertise the project and invited Jones, a representative from Congressman Roger’s office, and a representative of the CVADD to next month’s fiscal court meeting. It is anticipated that an action will be taken at this meeting to hire SKED as the project administrator and to ensure that the grant funding isn’t withdrawn.

In the November 12, 2025, issue of the Jackson County Sun, Judge Gabbard gave an update on the project with an anticipated timeline. It is unclear how hiring SKED as the project administrator will affect the timeline. However, this provides some insight into the steps required and estimated time(s).

JACKSON COUNTY SUN - NOVEMBER 12, 2025
Judge Gabbard Provides Update on Old Jail Project
submitted by Judge Shane Gabbard
I want to share what we have been able to get approved by the Federal Government concerning the Old Jail project. This project is funded by a Congressional Earmark. A congressional earmark is a legislative provision that directs a specific amount of money to a specific project, often benefiting a particular locality or interest. These earmarks are typically included in appropriations bills, allowing lawmakers to allocate funds for projects they support, sometimes with limited oversight or review. We have been waiting on an environmental review to be completed to get started. I have included the proposed timeline of the project to share with our citizens.
McKee Renovation of Old Jail
Grant Project Action Plan and Timeline
The renovation of the Old McKee Jail into a facility serving as a local business incubator is a complex project that must be conducted in phases. These phases must be staged such that the work flows smoothly with minimal issues. This document lists the general phases and aspects of the renovation, some of which can be done in parallel and some of which must be done in a specific order.
January 2026 Procurement initiated for architect
February 2026. Architect selected.
Jackson County officials and architect meet to begin discussions on design
and construction requirements. Architect made aware of brownfield
mitigation needs.
March 2026 Officials and architect continue design discussions, to include designs for
courtyard.
April 2026 JC officials review and give approval for architectural design of building
interior, building exterior, and courtyard.
May 2026 Procurement initiated for construction contractor, to include all three
elements of the project: interior, exterior, and courtyard.
June 2026 Construction contractor selected and approved. JC officials, architect, and
contractor(s) meet to discuss how to best approach the renovation.
Discussion includes the need to remove brownfield materials (asbestos, lead
paint) identified in a Brownfields Phase II report.
July 2026 Work begins on exterior renovations.
Brownfields mitigation conducted in preparation for interior renovations.
August 2026 Exterior renovations continue.
Courtyard improvements begin.
September 2026Exterior renovations continue.
Interior demolition in preparation for improvements begins.
October 2026 Interior demolition completed.
Installation of all new plumbing, electricity, and HVAC.
November/ Continued installation of new plumbing, electricity, and HVAC
December 2026
January 2027 Interior renovations continue.
February 2027Interior renovations continue.
March 2027 Courtyard work begins.
Interior renovations continue.
April 2027 Final elements of interior renovations completed.
Courtyard work continues.
May 2027 Courtyard work completed.
June 2027 Building opens for public use.