Have you been to any official competitions? It's generally hard to organize one if you haven't at least been to a couple, and ideally you should help out with at least one of them before you try. Also, if you're younger, it's best to get a parent involved. We've had some very successful competitions that have been run by young organizers with a good parent's help.
I would love to see a competition in Louisville, as I'm only 2 hours away. I'm too busy these days to be able to organize a competition, but I would certainly be willing to be on staff and help. One thing I'd appreciate is if the competition had at least one of my favorite events (anything blindfolded, fewest moves). 3x3x3 BLD in particular isn't that complicated to hold. Most of the competitions within a few hours of us these days don't have any of those events, so it would be much appreciated.
As for the location, there were several competitions in Lexington KY, so I'm sure there would be a community in the general area. And certainly there are plenty of southern Indiana cubers, and people would most likely be willing to travel from Indianapolis and even beyond. Also there seems to be an active community in Tennessee, some of whom would likely attend. If you held popular events, it would probably fill up fast. You would want to work with someone with lots of experience to make sure you could handle the people that would probably attend, and you'd probably want to use an attendance limit.