By Mark Hansel
NKyTribune managing editor
The annexation of approximately 167 acres of airport land in Boone County into the City of Florence would pave the way for additional development along the Aero Parkway corridor.
A Kenton County Airport Board committee has already approved the request for annexation, which is the first step in the process.
“A goal of the Cincinnati/Northern Kentucky International Airport is to expand non-aeronautical revenue,” Melissa Wideman, Manager – Government Affairs and Communications, Kenton County Airport Board, said. “The potential annexation allows for access to utilities on the south airfield. This will lead to future development and more jobs for the region.”
Earlier this year, CVG leased a 52-acre site on Donaldson Road to Reno, Nevada-based Dermody Properties and Hillwood Investment Properties. Dermody announced last month that the site will be developed as an 898,560-square-foot distribution facility for Wayfair Inc.
The Kenton County Airport Board owns the 167 acres of property that is separated by Ted Bushelman Boulevard and is contiguous to the city of Florence.
Currently, 31 acres have been developed and are under a ground lease to Bosch Automotive Steering, formerly ZF Steering.
Florence Mayor Diane Whalen said airport officials have been in discussions with the city for more than a year about the best way to develop the property.
“They came to us and started talking about the Bushelman Boulevard corridor and their desire to change the philosophy of the airport as it has been for years,” Whalen said. “They are looking to develop some of the land that isn’t essential to airport operations.”
There are few opportunities for annexation into Florence because the city is basically landlocked.
This proposal, which Whalen said is likely the last annexation opportunity in Florence for the foreseeable future, came about because the city can provide essential services needed for development.
The 31 acres that have been developed by Bosch are connected to the City’s sewer and water lines through various easements across company property to Spiral Drive and Turfway Road.
The remaining 136 acres do not currently have access to the City’s water and sewer service.
As part of the annexation agreement, the airport and the city would split the estimated $700,000 cost of a relocated and expanded sewage pump station that serves the area.
“ZF Steering leased land from the airport for two of their buildings and we did provide the water service for that facility with the understanding that when ZF purchased the land they would annex the property,” Whalen said. “Changes have occurred at ZF, Bosh is now the parent company, and the purchase of the property has not occurred, but that will also be wrapped into this annexation.”
The pump station is in need of replacement, so including the upgrade in the annexation agreement provides an opportunity to accommodate the increased capacity required for new development as well.
“The degree to which the pump station needs to be upsized was dependent on whether this property came into the city or not,” Whalen said. “In our most recent discussions I said if they are going to do this I would prefer they go ahead and proceed with the intent to annex. That way we can make the plans and bid the project appropriately to accommodate not just us, but the future growth associated with the annexation.”
The parcels targeted for development are adjacent to Bushelman Boulevard and east of Aero Parkway. It is anticipated that they will be used for industrial warehousing, manufacturing facilities and possibly some retail development.
Boone County Judge-executive Gary Moore said the improvements were anticipated when the $20 million Aero Parkway was constructed by the county using mostly federal funds.
The 2.7 mile road, which extends from Turfway Road to Burlington Pike (KY 18) was designed primarily to alleviate congestion in the Mall Road area, but would also provide access for development.
“We knew this would stimulate more job creation and growth and that’s exactly what is happening here,” Moore said.
The City of Florence agreed to permit the transfer of $3 million unused during the Mall Road Renovation project to ensure the completion of Bushelman Boulevard as a connector to Houston Road.
Moore said that connector will have added significance now as an internal road on the Bosch property is expected to be expanded to extend from Turfway Road to Bushelman Boulevard.
The road would run parallel to Aero Parkway and allow for internal traffic within the new development.
“That will open up some really nice industrial or office type parcels but we do not envision this area being retail or commercial,” Moore said.
While Moore has not always been a fan of annexation, he recognizes there are times when a city can serve an area more efficiently.
“It lowers the cost of development to the property owner and yes, there may be taxes, but they go in knowing that,” Moore said. “I think they also see that there might be additional services that they may not get in an incorporated area.”
Whalen said the tenants at the new development would become city water customers and the land is ideally situated for the city to provide police and fire protection.
“The airport would back up the fire because it is on their property, but with the new Bushelman Boulevard fire station being directly across from this, the access is there,” Whalen said.
The annexation agreement must first be approved by the full Kenton County Airport Board which is expected to consider the issue in the next few weeks.
The agreement would then be placed before the Florence City Council for approval, and that body appears ready to support annexation.
Annexation and subsequent development will increase the real estate taxes, based on what is constructed on the site and provide payroll taxes for the city and the county.
“The story that we always tell, and continue to tell, is that there is no downside to annexation, especially when it comes to the airport,” Whalen said. “They can annex all of that property and because they are a tax exempt organization, they don’t pay real estate taxes on it. It’s not until it’s actually developed that the leasehold becomes taxable to the company that builds.”
Contact Mark Hansel at mark.hansel@nkytrib.com