New development fund a 'catalyst' for Northern Kentucky

An new development corporation launched by Vision 2015 may help drive development in Northern Kentucky. The Catalytic Development Funding Corporation (CDFC) has set a goal of $10 million committed to new investment by next July, with the goal of leveraging more than $100 million in development projects. CDFC will be led by board chairman William Butler, founder and chairman of Corporex Companies Inc., and vice chairman Charles Scheper, COO of Great American Financial Resources.

Jeanne Schroer, an urban planning and real estate financing expert who was responsible for much of the financial packaging for Corporex's riverfront development, has been named as executive director and will begin her tenure September 1.

"The initial focus will be Covington and Newport, but we'll work in the other river cities as well if the right project comes along," Schroer says.  "The goal is for the activity and revitalization that's been seen in Northern Kentucky's urban areas to spread southward into the neighborhoods."

CDFC is loosely modeled on gap financing funds such as the Cincinnati Equity Fund, established in 1996 and now part of 3CDC.

"Developments in urban areas often have more complexity to them, take more time, and cost more," Schroer says.  "Often, conventional lenders can provide only partial financing.  If we can come in and fill that gap, the development process can accelerate."

While still putting the corporation’s pieces together, Schroer says that there will be many things happening simultaneously as the CDFC begins to ramp up its activity.

"In conjunction with raising money, we'll be looking for projects that meet our criteria and speaking with developers who have projects that can have a catalytic effect on Northern Kentucky," she says.

Writer: Kevin LeMaster
Source: Jeanne Schroer, executive director, CDFC
Photography by Scott Beseler