COVINGTON, Ky. (FOX19) - The Covington Board of Commissioners authorized the city to borrow the money needed to buy the former Internal Revenue Service tax-processing facility and demolish it.
The 23-acre property will be improved and prepared for private development.
“This is clear evidence of the City’s commitment to move promptly on the redevelopment of a project that will shape downtown Covington for decades,” Mayor Joe Meyer said in a news release. “And the timing is good - the City’s recent credit upgrade will help make borrowing more affordable.”
After four months of negotiation, the federal General Services Administration in March accepted the offer of $20.5 million for the site.
The ordinance approved by the Commission on a 4 to 1 vote authorizes Covington to issue up to $30 million in debt to raise funds to move forward on the project.
The city says the money would be earmarked like this:
- $18.45 million for acquisition.
- $5 million for demolition.
- $4.05 million for site improvements and contingency costs. Site work would include restoring the street grid, extending utilities and building WiFi infrastructure. Contingency costs would include construction management, an environmental assessment (and addressing any problems discovered), a survey, and platting.
- $2.5 million to reimburse the General Fund for money the city paid for public parking as part of the John R. Green project underway in MainStrasse Village.
The vision of the development includes a restores street grid, a levee park, a community plaza for festivals, and a mixture of buildings containing offices, retail shops, and places to live.