Private business profits from land deal with Glasgow, records show

GLASGOW, Ky. (WBKO) – A recent land transaction between a private business and the city of Glasgow resulted in a profit for the business, which sold a portion of the land for more than it initially paid, WBKO Investigates has learned.

We obtained copies of the land deeds related to the deal between the city and MCS Properties LLC, as well as the deed between a living trust and MCS Properties.

The documents reveal on Nov. 26, the J. Leonard and Bernadine Johnson Living Trust transferred 197.732 acres of land to MCS Properties LLC. The land was then divided into four tracts, with MCS retaining 38.211 acres. MCS Properties purchased the land from the trust for $5,871,960.

That same day, MCS sold the remaining 159.521 acres at 1573 Cleveland Ave. to the city of Glasgow for $6,061,798, netting a gain of $189,838.

Glasgow Mayor Henry Royse previously told WBKO Investigates that MCS Properties approached the city in early August with an offer to sell the portion of the property they did not plan to keep. The company was primarily interested in retaining a section along U.S. 31-E, near a lawncare business it owns.

Scrutiny of the deal intensified after the Glasgow City Council held closed-door meetings, providing little clarity on how the nearly 160 acres of land would be used if purchased. Following the transaction, city officials defended the acquisition, stating the land was strategically important for Glasgow’s future growth and development.

“We are buying the property to make it available to developers who want to invest in our community—that would generate better housing, there’s some retail opportunities in there, there’s some recreational opportunities in there,” Royse said. “But the way you have to get it started is to have the land to develop.”

Developers would purchase sections of the property from the city ahead of their own development plans, according to the mayor.

Royse clarified that no negotiations took place before the city purchased the land. MCS named its price, and the city paid it.

Meanwhile, Councilmembers Marna Kirkpatrick and Max Marion opposed the deal during discussions ahead of key votes.

“You go talk to any realtor, and the sale price is usually not the list price,” Marion said. “But in this instance, it was.”

Questions also arose regarding whether an appraisal was conducted before the purchase.

At a recent city council meeting, Mayor Royse acknowledged he was initially mistaken in believing an appraisal had been completed. He had said one was obtained in a prior meeting.

“You would think that with the city making this big of a purchase worth millions of dollars, we could have done an appraisal,” Kirkpatrick said.

City Attorney Rich Alexander clarified that Kentucky law does not require cities to obtain an appraisal before purchasing property. Royse further defended the decision, explaining that obtaining an appraisal would not have been practical in this instance.

“We’re not borrowing any money. There is no requirement from a lender standpoint to have it,” Royse said. “How would you do an appraisal? There’s nothing to compare it to. There’s not another 162-acre tract of land in this community that’s not developed.”

QK4, a Louisville-based engineering and planning firm, conducted “due diligence” testing on the land prior to the purchase. The firm assessed the property’s geography and topography.

The purchased land now sits unused, with concrete plans for its development yet to be announced, though the city is hopeful developers will invest.

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