As Harley-Davidson's York union members were meeting Friday morning to review their new contract proposal, officials in Kentucky have lost some hope that the company will relocate to Shelbyville, Ky.

Kentucky Gov. Steve Beshear said in a statement Thursday that the potential for pulling off a deal with the company is "significantly diminished" because the union is presenting a contract to its membership.

"With the recent union vote and published reports, it appears our opportunity is significantly diminished," he said in the statement. "Nevertheless, we will continue our discussions with the company and do all that we can to bring jobs to Kentucky until a final decision is made."

The union hasn't actually voted on the contract, but its leadership has settled on a contract proposal. Leadership presented the is presenting the proposal to membership in advance of a vote scheduled for Dec. 2 so workers have time to digest the proposal before casting their vote.

Kerri Richardson, the governor's spokesperson, told The (Shelbyville) Sentinel-News that Beshear's comments were based on information he had received concerning Harley's negotiations in York.

"We're not out of it yet, but we're concerned based on some information that is coming out of York and some published reports that indicate that maybe it's not looking so good for us." Richardson told the newspaper. "We're basing that on a report from last night that the union leadership and Harley have come to a tentative agreement and they will present that for a vote in December."

Meanwhile, local officials in Shelby County, Ky. told the Sentinel they were shocked at the governor's statement, saying they didn't think anything had changed.

As part of their efforts to lure the company, officials in Kentucky have accelerated plans to re-zone a 200-plus-acre plot from agricultural to industrial to accommodate a plant.

Beshear had recently announced that he might call a special session in December to consider an economic incentive package for the company.

--The Associated Press and The (Shelbyville, Ky.) Sentinel-News contributed to this report. Reach Christina Kauffman at 505-5436 or ckauffma n@yorkdispatch.com.

Also see

Contract would cut Harley workforce by more than half

Details of the proposed contract