Northern Kentucky urban development corporation aided by $1M investment

Thanks to a $1 million investment by Duke Energy, an urban development fund in Northern Kentucky is now well on its way towards reaching a goal of raising $10 million to invest in development projects in Ludlow, Dayton, Bellevue, Newport and Covington.

The fund is the result of Vision 2015, a Northern Kentucky initiative which focuses on growth, opportunity, culture, and prosperity.  When the initiative's leaders began discussing these priorities, it became evidently clear that part of that focus had to be on the five urban cities located along the Ohio River.  After studying "best practices" from around the country, local leaders determined that creation of the Catalytic Development Corporation was necessary.

"We noticed that many successful urban areas around the country were utilizing development funds that are privately funded and used to assist real estate developments," said Jeanne Schroer, Executive Director of the Catalytic Development Fund of Northern Kentucky.

The $1 million investment from Duke adds to the $1 million investments made by the Bank of Kentucky and Corporex Companies which jump started the fund in late 2008.  According to Schroer, the contributions made by the three companies thus far are long-term investments that will be paid back over time.  The benefit arises from the fact that the companies do not have to underwrite individual projects, and developers can utilize the money as gap financing for projects that might not otherwise garner interest from such large companies.

"We can take this money to close the gaps on projects that need our help.  This will make more projects happen more quickly, and will serve as a catalyst to the other funds involved," Schroer said.

Schroer believes that the remaining $7 million can be raised within the next 12 months to meet the urban development fund's ultimate goal of $10 million.  She says that there are "a lot" of proposals outstanding, and that these interested parties could help make the goal a reality.  In the mean time, the Catalytic Development Corporation is very pleased with its current investors.

"Duke is very focused on regional economic development, and a healthy downtown area is important to the health of the larger region," Schroer said.  "Urban revitalization is very important to long-term economic health as it serves as important factor for companies and young talent who look for vibrant urban areas."

Writer: Randy A. Simes
Photography by Tiffani Fisher
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