Kenton County is teaming with the Catalytic Fund to help high-impact redevelopment projects countywide get off the ground.

On Tuesday, the Fiscal Court approved an agreement with the Covington-based real estate Community Development Financial Institution to have the Catalytic Fund serve as an expert advisor on the deployment of the County’s newly launched Community Redevelopment Fund. 

Since its inception in 2013, the Catalytic Fund has executed 100 projects that convert neglected or underutilized properties into quality spaces that generate economic activity and attract additional investment, while never once losing its investors’ capital. With an emphasis on housing, mixed-use developments and the revitalization of key commercial corridors, the Fund’s impact is visible throughout Northern Kentucky’s river cities.

Its projects represent more than $450 million in total investment in Northern Kentucky.

The Community Redevelopment Fund aims to provide Kenton County cities funding to support projects that will positively impact businesses and/or generate jobs.

The program has $5 million in available funding, thanks to the Kentucky General Assembly, which funded it as part of the 2024 budget.

“Catalytic Fund CEO Jeanne Schroer and her team have had a tremendous impact on our community, and there are few transformative projects in our urban core since their founding that they’ve not helped make happen,” Judge/Executive Kris Knochelmann said. “I feel confident with their expertise and guidance we can ensure the funds entrusted to Kenton County by our partners in the General Assembly will be spent responsibly and generate a significant impact for our cities and residents.”

The Catalytic Fund will help the County:

• Develop criteria against which funding requests from Kenton County cities will be evaluated;
• Create a uniform funding request proposal document to be shared with each city;
• Build a quarterly report on the program’s status, including received proposals and updates on funded projects; and
• Evaluate proposals and provide the County recommendations on whether to award funding, the amount of funding, terms and conditions of funding and an outline of a project’s potential economic development impact.

The Fiscal Court will maintain final approval on any funding proposals.

Formal proposals must be submitted by a city’s mayor, in consultation with its legislative body, with the city demonstrating its ability to provide a 10% match for any funding awarded.

Eligible projects should generally be focused on property development – such as acquisition, renovation, site preparation, etc. – or right-of-way improvements that enhance the quality of life by ensuring safety and accessibility to all residents.

Proposals that do not fall under these core parameters can be shared with Planning and Development Services of Kenton County’s Community Development Department to ascertain potential eligibility.

The Catalytic Fund will charge a transaction evaluation fee for each deal it vets on behalf of the County, along with an execution fee for each transaction approved and funded.

“Working with the County on the deployment of its Community Redevelopment Fund is an exciting opportunity for our team,” Catalytic Fund CEO Jeanne Schroer said. “We are all Northern Kentucky residents and want to see our region succeed. This partnership gives us the opportunity to bring our financial and real estate expertise countywide to create lasting economic growth and vibrant spaces that benefit residents and businesses alike.”

As part of its agreement, the Fiscal Court has also agreed to potentially partner with the Catalytic Fund on projects that could qualify for Catalytic Fund support.

For any project using both Catalytic Fund and County dollars, the Catalytic Fund will provide at least 10% of the transaction amount with its own capital. Unlike Catalytic Fund dollars, any County funding used for a project involving the Catalytic Fund, once repaid by borrowers, will revert back to the County’s Community Redevelopment Fund.

The County will also not pay any transaction fees for deals involving both the County and Catalytic Fund although the Catalytic Fund will charge borrowers their typical transactions fees and interest on any loans provided.

About the Catalytic Fund 

The Catalytic Fund is a private sector not-for-profit Community Development Financial Institution that provides non-traditional financing and related property development advisory services. The Company serves developers, property owners, and investors across municipal and public entities, private business, and nonprofit entities with interests in quality residential and commercial real estate projects within a Northern Kentucky Investment Area. The Company’s strategic purpose is to attract and execute quality place-based investments that result in regional economic development (job and talent attraction) and local community development (improving quality of life and place).   

The Catalytic Fund executes high impact real estate development projects via a $32M fund capitalized though loans and grants provided by banks, foundations, private corporations, and the U.S. Department of Treasury Community Development Financial Institution Fund. Its expertise in real estate finance, urban planning, historic preservation, and community and economic development allows the Company to convert community revitalization plans into lasting and tangible assets.

Its portfolio of projects include: Hotel Covington, Boone Block Lofts, Kent Lofts and SparkHaus.