Seventeen census tracts across eight Northern Kentucky cities have been approved for Opportunity Zone 2.0 designation, giving communities another tool to attract private investment, put underused properties back to work, and support local economic development.
The designated areas span portions of Covington, Dayton, Florence, Newport, Southgate, Wilder, Highland Heights, and Cold Spring. Gov. Andy Beshear announced the tracts submitted to the U.S. Department of the Treasury as part of 137 census tracts across 76 Kentucky counties. The U.S. Department of the Treasury announced that all 6,576 census tracts across the country had been designated as Qualified Opportunity Zones for the program’s second round. The designations take effect Jan. 1, 2027.
Southbank Partners partnered with The Catalytic Fund to host an information session with Deven Richardson, director of the Cabinet for Economic Development’s Opportunity Zone team. Following that meeting, Travis Gysegem, director of research and underwriting at The Catalytic Fund, coordinated the regional application.
“Our Northern Kentucky Region is strongest when it stands together, which is why we created a regional Opportunity Zones application for Boone, Campbell, and Kenton Counties. Working with our partners, we were able to inventory available sites and buildings, obtain letters of support from all three County Judge/Executives and 25 City administrations, and distill the information into a single, comprehensive regional application in just a few short weeks,” said Gysegem.
While it was anticipated that Northern Kentucky might achieve six Opportunity Zones, 17 of 25 census tracts requested in the regional application were designated as Opportunity Zones, far exceeding expectations and outpacing peer regions across the Commonwealth.
“When we work together, we compete at the highest levels and deliver results for the people we serve,” said Will Weber, president and CEO of Southbank Partners. “The combined effort was focused on one shared goal: attract investment to our communities. These designations can help attract investment to new and existing businesses, support responsible redevelopment efforts, and bring new opportunities to the region.”
“Cities that received these designations must thank Southbank Partners and The Catalytic Fund for providing the resources and guidance we needed to ensure that our region had comprehensive and competitive submissions for consideration by Gov. Beshear and his economic development advisers,” said Jay Fossett, Dayton city administrator and Covington city councilman-elect. “These regional economic-development organizations are vital to continued success in creating and retaining jobs for our region.”
The approved census tracts include:
• Newport: 501 and 506
• Newport, Southgate, and Wilder: 525
• Florence: 701.01, 701.02, 702.01, 702.02, and 703.01
• Dayton: 511.01
• Wilder, Highland Heights, and Cold Spring: 533.01
• Covington: 609, 610, 613, 650, 651, 670, and 671
Opportunity Zones offer federal tax incentives for qualifying private investments made through Qualified Opportunity Funds into eligible businesses and real estate within designated census tracts. The program is designed to encourage long-term investment and job creation in communities with limited access to private capital.
For the eight Northern Kentucky communities, the designations can help position local properties for investment and support efforts to bring buildings and sites into productive use.
“The City of Dayton is honored that Gov. Andy Beshear has selected our city for an Opportunity Zone in Northern Kentucky,” said Dayton Mayor Ben Baker. “The federal tax incentive will complement the ongoing development activities underway in Dayton that have been transforming our community and will encourage even more investment in our city.”
Southbank Partners/The Catalytic Fund