By Ryan Clark
NKyTribune reporter
Once again, the city is using a new Vacant Property Initiative to entice developers to turn empty commercial buildings into move-in commercial space.
The incentive? Developers get reimbursed a portion of the payroll taxes created by future tenants.
This time the site is 533 Pike St. Covington Commissioners heard a proposal to utilize the property in this way during their regularly scheduled caucus meeting Tuesday night.
“This property has been very, very difficult to lease,” said Economic Development Director Tom West.
He went on to say how the building has been sitting vacant for more than two years, and how the possible new owners — CB Property Holdings, LLC — intend to renovate for office development.
This fits into the city’s economic development strategy, which called for new office product and enhancements to Covington’s gateways. Due to the city’s low vacancy rate, Covington was recommended to “develop and invest in real estate product for the city” to create move-in-ready commercial space for new businesses.
CB Property Holdings, LLC, will pay $337,000 to renovate, West said. The city staff is proposing a 1.25 percent payroll incentive for all the new jobs they attract to the building. Once the tax is collected on those employees, 1.25 percent will go back to the developer to help retire the debt on the renovation cost.
It is estimated that the developers will get about $61,250, while the city will still get $58,800.
West said CB Property Holdings, LLC, are in discussions with a non-profit and small law firm and hope to retain the existing property management firm that is currently leasing a space in the building.
The Vacant Property Initiative was first utilized over the summer.
“We think this tool will help sweeten challenging rehab projects and add vibrancy and momentum to Covington’s neighborhoods by helping us attract new restaurants, bars, entertainment, boutiques, and new office users,” said Ross Patten, assistant director of Economic Development in Covington.
The proposal was placed on the consent agenda for next week’s meeting.
Property sale and redevelopment
Commissioners heard a proposed order to declare city-owned property at 1108 and 1110 Locust St. as surplus, and to also authorize Mayor Joseph U. Meyer to sign a Disposition and Development Agreement with Bean Wesdorp, LLC, for their sale and redevelopment.
The city acquired the properties in 2006 using CDBG funds for the purpose of blight removal.
On March 23, the city issued a Request for Proposals for their sale and redevelopment. The Board approved Bean Wesdorp, LLC, on Aug. 10.
Bean Wesdorp, LLC, plans to purchase the properties for $20,000, and invest $300,000 to create a single-family home.
The proposal will be on the regular agenda for next week.
Hires and resignations
• Covington Police are looking to hire applicant Zachary Stayton as an officer. His start date would be Oct. 17. This would bring the department up to 109 of 114 authorized officers.
• Firefighter and Paramedic Jay Feldkamp has submitted his resignation, effective Oct. 3.
Both will be on next week’s consent agenda.
Hybrid work policy
“Due to the rise in COVID-19 cases, eligible employees have been encouraged to work a hybrid and/or remote work schedule to create a safe and functioning work environment,” city documents say. “We encourage everyone to consider 2021 a transitional year for this policy.”
Cindy Lewis, the city’s Human Resources Director, said it would also allow the staff to “pivot” to remote work if needed.
“The default position is to work from the office,” City Manager Ken Smith said. “This is ‘as necessary,’ a case-by-case basis.”
The proposal will be on next week’s consent agenda.
Stormwater plan
Commissioners heard a presentation for the Stormwater Quality Management Plan for Covington MS4 systems.
They’d originally heard a draft of the plan in July, and this was an update of that plan, which was submitted to the Kentucky Department of Water to maintain their permit validation. The presentation showed the Commission the elements and the requirements of the operation and maintenance of the MS4 program.
The Commission will have through the end of the year for their program planning, and 24 months to implement the program.
Mayor Meyer said he would expect a plan in the future, with a map and an order to approve.
PDS inspection agreement
On a similar topic, the Commission also heard a proposal for the Planning and Department Services of Kenton County to inspect the installation of new stormwater systems. Prior to the transfer of stormwater maintenance responsibilities to the city, PDS inspected the installations, and to eliminate the possibility of redundancy, the city thought it a good idea for them to keep doing it.
The proposal will be on the consent agenda for next week.
Smith absent
Commissioner Shannon Smith was absent Tuesday night.
Executive Session
Before the meeting, Mayor Meyer told Commissioners that at its conclusion, they would enter into a special Executive Session “to discuss pending litigation.”
The Mayor said the Commission would not reconvene afterward, and they would not take any further action after that.
Next Meeting
The next regularly scheduled Covington Commission meeting will be a legislative meeting held at 6 p.m., Oct. 12, at the City Building at 20 W. Pike St. in Covington. The meetings can be followed live on Fioptics channel 815, Spectrum channel 203, the Telecommunications Board of Northern Kentucky (TBNK)website, the TBNK Facebook page @TBNKonline, and the TBNK Roku channels.