The Courier-Journal (Louisville)
Why is it becoming more active now?
A hundred million dollars. That’s how much it could cost a company to make raw land more developable in Northern Kentucky, depending on the size of the property. Hills, trees, corn, wetlands – that all needs to be cleared before anything can be built. If no utilities already run to the site, companies could have to add about three years of waiting to get water and electricity to the land.
That’s a major hurdle to bringing companies, jobs and investment into the area, according to Lee Crume, president and CEO of BE NKY Growth Partnership.
“When you have a piece of raw land, the time frames and the risk associated with getting that prepared are so great. It’s just unsellable,” Crume said.
That’s the problem the newly revived Northern Kentucky Port Authority aims to solve.
What is the Northern Kentucky Port Authority?
The port authority’s main purpose is threefold. It finds land a company could be interested in buying for private commercial and industrial construction purposes. Then it makes the property site ready. It also promotes the sites to companies looking to invest in Boone, Kenton or Campbell counties.
It’s not a new entity, though. The port authority has existed in Northern Kentucky since 1968.
Who controls the port authority?
Boone, Kenton and Campbell county judge executives appoint two board members to serve four-year terms on the organization’s board. There are seven board members and a board liaison for the port. BE NKY appoints one of the board members and liaison because they have signed a memorandum of understanding with the port to work collaboratively.
Those board members ultimately determine which projects would make the most sense for the port authority to take on.
The short answer is that the property market has changed over the past 15 years, so the organization had to become more active.
For instance, in the past 13 years,
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the port has done two projects. It worked as a pass-through on matching grant funds for a Riverfront Commons feasibility study and sold one piece of land to the city of Newport.
“The Port Authority had not done a project in some time ... they weren’t actively out looking for projects. They weren’t actively out, trying to create this kind of momentum that we were talking about,” Crume said.
Has it done any projects yet?
It’s working on the OneNKY Center at the foot of the John A. Roebling Suspension Bridge, a $26 million project that broke ground in late August.
But that project is a little bit different than other projects the organization will likely be investing in later.
The 45,000-square-foot building is being built on what’s currently a parking lot rather than a plot of land that did not have to be cleared for the project, like future ones may have to be.
The port authority is the developer and owner of the soon-to-be-built building, which officials say is already 96% leased.
“Over time, we expect it to be a revenue generator for the port,” Crume said.
How is all this funded?
It depends on the project. According to BE NKY, the OneNKY Center was funded through bonds, and the land was purchased by St. Elizabeth Healthcare. The Catalytic Fund helped raise other money through the Covington Life Sciences Partner for Covington Life Sciences Lab, the Haile Foundation, Horizon Community Funds, Durr Foundation and Drees Foundation.
Funding for other projects could be garnered through statewide or federal grants, along with contributions from other organizations.
What role does BE NKY Growth Partnership play?
The organization, which was previously Tri-ED, is a separate entity that works to increase economic growth in the area. It works in collaboration with the port to do that.
BE NKY Growth Partnership pays two full-time employees to work on behalf of finding money for the port.
It also has several people on the port authority board. That includes Christine Russell, vice president of strategy at BE NKY. She serves as the secretary and treasurer. Crume is also on the board as part of the BE NKY Growth Partnership. Ben Brandstetter, president of Brandstetter Carroll, is the board liaison and a non-voting attendee.