Covington commission hears proposal for two developments with potential for $1.7m payroll taxes


By Ryan Clark
NKyTribune reporter

Two proposed economic development agreements could bring in more than $1.7 million in new payroll taxes for the city. Commissioners heard both possibilities at their regularly scheduled caucus meeting Tuesday night.

The first, City Wide Facility Solutions, is leasing a building in Fort Mitchell and officials have decided to search for a building to own. After considering locations in Fort Mitchell, Erlanger, Covington and West Chester, they decided to purchase 200 W. Pike, (known as the historic train station) bringing 30 new jobs and $1.3 million in capital investment.

The city is proposing an economic development agreement providing a jobs development incentive.

City Wide Facility Solutions manages more than 20 services, including janitorial and handyman services, for commercial properties in the automotive, manufacturing, distribution, institutional, corporate office and medical markets. They will be adding 31 jobs with health, dental and retirement benefits, with plans to grow by 12 percent (four jobs) per year for at least the first three years.

Covington commission (Photo by Ryan Clark/NKyTribune)

City officials recommended the company receive a 1 percent payroll incentive for all new jobs brought to Covington for five years, followed by an un-incentivized five-year retention period.

The estimated new payroll tax for the city after the incentive would be $419,693.

Secondly, city officials encouraged another job development incentive agreement with the Kenton County Board of Education. Currently, the Board leases property within the city of Fort Wright, but the school board wants to build a new administrative facility in Covington at 347 Madison Pike.

They currently have 250 jobs in Covington and are looking to add an additional 79 employees over the next 10 years.

“The proposed construction at 347 Madison Pike will be a 45,000-square-foot building that will house up to 100 employees, plus a boardroom that will have the capability to host public board meetings, with room for up to 200 community members,” city documents say. “The site is nine acres and sits on the corner of Madison Pike and Tuscanyview Drive. Since the building will be funded by Capital Construction dollars, this investment and development will exist for many years to come in the location slated for construction.”

The city recommended that the Board receive a 1 percent payroll incentive for all new jobs created in Covington over a 5-year period followed by a 5-year retention period.

The estimated new payroll tax for the city after the incentive would be $1,287,516.

That’s a total of $1,707,209 for the city.

“This is great news,” said Mayor Pro-Tem/Commissioner Ron Washington. “Welcome.”

The Covington Station (Photo provided)

Both proposals were placed on the consent agenda for next week’s legislative meeting.



Housing Authority/Section 8 Merger

Commissioners heard a request to support the consolidation of the Covington Housing Authority and the Housing Authority of Covington. In other words, the proposal would create single, unified housing authority for the city.

“The Housing Authority of Covington currently manages public housing in Covington. The City of Covington currently manages KY-133, which is also referred to as City of Covington Housing Choice Voucher Program (HCV),” city documents explain. “There are numerous benefits of the proposed consolidation …. Perhaps the most significant benefit is the creation of a single housing authority entity that will serve as a one-stop shop for public housing and housing choice vouchers. Considerable operational efficiencies will be gained and there will be the opportunity to secure additional housing resources for our community by operating under the single entity housing authority model, similar to the manner a majority of communities in the United States operate.”

The proposal was placed on next week’s consent agenda.

Neighborhood Development Code

Commissioners heard a proposal Tuesday night to remove authority from the Kenton County Planning Commission to grant variances to applicants in conjunction with a proposed map amendment, and instead give it to the City’s Board of Architectural Review and Development (BOARD).

“This would guarantee a public hearing conducted and decisions rendered by a board fully appointed by the Mayor and Board of Commissioners, assuring familiarity with both the Neighborhood Development Code and the City’s Historic Design Guidelines where applicable,” city documents say.

The proposal was placed on next week’s consent agenda.

Meeting Rule Change

Last week, Mayor Joseph U. Meyer suggested that Commissioners consider a rule change that will allow the City Manager to offer his updates at their regular meetings each week.

“For both the caucus meeting and the legislative meeting, in which the City Manager gives a report on activities undertaken by his office and issues that he thinks are important to bring to the Commission’s attention,” Mayor Meyer said then.

City Manager Ken Smith made the official proposal Tuesday night, and it was placed on next week’s consent agenda.

New Hires and Contracts

Commissioners heard proposals for these new hires and contracts:

New Hire – Sabrina Hinkel, Section 8 Service Representative, Neighborhood Services
New Hire – Angela Smith, Section 8 Service Representative, Neighborhood Services
Contract — Police Officer Matthew Hugenberg

The proposals were placed on next week’s consent agenda.

Retirements

Commissioners heard the proposed retirements of:

Deputy Chief Michael Bloemer, Fire Department
Assistant Chief Charles (Greg) Salmons, Fire Department

The proposals were placed on next week’s consent agenda.

Promotions

Commissioners heard the proposed promotions of:

Assistant Fire Chief Corey Deye to Deputy Fire Chief
Lt. James Adams to Assistant Fire Chief
Captain Joseph Vance to Assistant Fire Chief
Campbell, Moellinger, Erdman, & Krallman

All were placed on next week’s consent agenda.

Resignations

Commissioners heard the proposed retirement of:

Caine Hughes, Senior Finance Manager, Finance Department

The proposal was placed on next week’s consent agenda.

Appointments

Commissioners heard the proposed appointment of:

Velma Golsby, Housing Authority of Covington

The proposal was placed on next week’s consent agenda.

Executive Session

“We are going to Executive Session to discuss a pending litigation — pending and potential litigation — against the city,” Mayor Pro-Tem Washington said. “No action will be taken in this session and the meeting will be adjourned after the Executive Session ends.”

Absent

Mayor Meyer was absent Tuesday night, as he was attending the Governor’s inauguration in Frankfort.

Next Meeting

The next regularly scheduled Covington Commission meeting will be a legislative meeting held at 6 p.m., Dec. 19, 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.


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