Study Touts 'Times Star Commons' Impact
COVINGTON - There are plenty of numbers within the economic impact study released last week for the proposed Times Star Commons project in downtown Covington.
Estimates on the total number of visitors (2.25 million), annual job creation (469), gross retail sales ($464.5 million over 10 years), and tax revenues for local and state governments ($12.13 million over 10 years) are some of the more eye-popping figures detailed in the 23-page report.
Supporters of the project hope that the study's findings go a long way in convincing state lawmakers of its worth.
Because when it comes to the future of the planned retail development project - which includes an indoor/outdoor regional farmers' market, residential condos, a 500-seat amphitheater, and ample green space - the most important number of all is $17 million.
Why? Because that's how much money needs to come from Frankfort in order to get the estimated $32.5 million project off the ground. The other half would come from private investors.
State Sen. Damon Thayer, R-Georgetown, is a leading advocate of the project and will help push for state dollars when the General Assembly convenes next month.
Thayer describes the project as not only an avenue for urban renewal, but also as a way to help farmers in NKY and outlying counties.
Senator is "Cautiously Optimistic"
After years of lobbying unsuccessfully for a regional farmers market, Thayer thinks that this time around might be different now that the market is part of a large-scale project like Times Star Commons.
He's "cautiously optimistic" about securing the necessary funding.
"This is going to be a difficult budget cycle because of stress that Medicaid and corrections are placing on the state budget," said Thayer. "We've got more and more people who are on Medicaid and more and more people who are in our jail system due to the drug problem we have in Kentucky."
Money for viable infrastructure investment is going to be hard to come by, he said.
Nevertheless, Thayer has encouraged Gov. Ernie Fletcher to include funding for the project in his executive budget.
"That would make a strong statement on the importance of the project," said Thayer.
Larry Maxey, chairman of the NKY Regional Farmers Market board of directors, envisions the development - planned for the city block between Fourth and Fifth streets, and between Madison Avenue and Scott Boulevard - as a destination point.
Many Kentucky farmers within the immediate 11-county area are interested in the project, he added, noting that the year-round market would be complemented by a specialty grocery and other businesses, possibly a butcher shop and bakery.
More Kentucky farmers will also look into new technology, such as hydroponics, in order to produce fruits and vegetables out of season to sell at the market, said Maxey.
It's estimated that the farmers' market could yield $11.5 million in annual sales, with $6.5 million going directly to farmers.
"If you provide an outlet for them and you can provide the vision, you can say, 'Here's an opportunity for you.' Because it all boils down to that," said Maxey. "It's an opportunity. They're not going to do it unless it's profitable."
Summarizing the study last week, Pat Baxter, director of community development for Corporex Cos. of Covington, pointed out the project's economic benefit for farmers (a new outlet to sell their goods), city residents (improved quality of life), downtown businesses (more customers), and the state (larger tax base).
The project is a joint venture between Corporex, the NKY Regional Farmers Market, and the city of Covington.
"We have a lot of positive momentum on this project," said Baxter, who distributed copies of the study to the governor and state legislators early last week.
Project organizers have said they'd like the city of Covington to contribute about $2 million to the project.
But, "With our current financial situation, we're not able to contribute $2 million at this point," City Manager Jay Fossett said.
Fossett said it is possible that Covington will appropriate money in the future, but declined to say when or how much.
"It won't be until we get our finances squared away," he said. "We're negotiating with our three unions, so it's hard to even predict."
But Fossett said city officials already are investing a lot of time studying and lobbying for the project.
He said he and two other city officials recently traveled to Washington, D.C. to attend a conference on public markets. They toured four markets in the nation's capital and four more in Baltimore, talking to the people behind successful public markets.
Covington officials also have traveled to Frankfort to lobby the state Governor's Office for Local Development.
"We talked to Commissioner Ellen Williams about this project and the need for it in Covington," Fossett said. "It would serve a need we have to establish a place downtown to shop for food, and it would also become a meeting place - kind of like our Fountain Square in Covington."
While the project will require the reconstruction of nearly an entire city block, Baxter said the goal of the development is to be as inclusive as possible, meaning long-time Covington businesses like Bessler's Economy Meats Market will be invited to be part of the development.
"The object of this project is not to run people out of Covington. It's to encourage businesses to stay and work with us. It takes a partnership to do that. That's what we're trying to accomplish," said Baxter.
"We hope to have a united front with the Northern Kentucky legislative caucus," he added.
As part of the Senate Republican majority caucus, Thayer said he would work with colleagues to secure funding.
"Northern Kentucky did well in the last budget cycle, and it should continue to do well. We are part of the strong economic engine that's driving the economy in Kentucky. As a net payer of taxes to Frankfort, we certainly deserve our fair share coming back for efforts like Times Star Commons," he said.
By Jason Feldmann
The Sunday Challenger
-- Reporter Jeanne Houck contributed to this story.
About Times Star Commons
Description: The proposed development features a regional farmers' market in the block between Fourth and Fifth streets and Madison Avenue and Scott Boulevard in Covington; it would also include residential and office condominiums, a 500-seat outdoor amphitheater and much more.
Cost: $32.5 million
* $17 million from state
* $15.5 million from private investors / local governments
Economic Impact:
10-year tax revenues....................$12.13M
NKY rest of Kentucky
Jobs created during construction...............454 150
Annual new job creation, first 10 years.....378 91
10-year projected cash flow................$386.38 million $78.16 million
10-year projected earnings...................$88.45 million $29.32 million
Next Steps:
* Gov. Fletcher will decide whether or not to put the project in his executive state budget proposal.
* The General Assembly will then consider whether the project belongs in the state budget.
Source: "An Economic Impact Analysis of the Times Star Commons Project, Covington, Kentucky," Dec. 15, 2005, prepared by Dr. Lynn Burbridge, regional economist, and Dr. Gary E. Clayton, professor and chair of economics and finance, both at Northern Kentucky University; and Dr. Robert Premus, professor of economics, Wright State University
Estimates on the total number of visitors (2.25 million), annual job creation (469), gross retail sales ($464.5 million over 10 years), and tax revenues for local and state governments ($12.13 million over 10 years) are some of the more eye-popping figures detailed in the 23-page report.
Supporters of the project hope that the study's findings go a long way in convincing state lawmakers of its worth.
Because when it comes to the future of the planned retail development project - which includes an indoor/outdoor regional farmers' market, residential condos, a 500-seat amphitheater, and ample green space - the most important number of all is $17 million.
Why? Because that's how much money needs to come from Frankfort in order to get the estimated $32.5 million project off the ground. The other half would come from private investors.
State Sen. Damon Thayer, R-Georgetown, is a leading advocate of the project and will help push for state dollars when the General Assembly convenes next month.
Thayer describes the project as not only an avenue for urban renewal, but also as a way to help farmers in NKY and outlying counties.
Senator is "Cautiously Optimistic"
After years of lobbying unsuccessfully for a regional farmers market, Thayer thinks that this time around might be different now that the market is part of a large-scale project like Times Star Commons.
He's "cautiously optimistic" about securing the necessary funding.
"This is going to be a difficult budget cycle because of stress that Medicaid and corrections are placing on the state budget," said Thayer. "We've got more and more people who are on Medicaid and more and more people who are in our jail system due to the drug problem we have in Kentucky."
Money for viable infrastructure investment is going to be hard to come by, he said.
Nevertheless, Thayer has encouraged Gov. Ernie Fletcher to include funding for the project in his executive budget.
"That would make a strong statement on the importance of the project," said Thayer.
Larry Maxey, chairman of the NKY Regional Farmers Market board of directors, envisions the development - planned for the city block between Fourth and Fifth streets, and between Madison Avenue and Scott Boulevard - as a destination point.
Many Kentucky farmers within the immediate 11-county area are interested in the project, he added, noting that the year-round market would be complemented by a specialty grocery and other businesses, possibly a butcher shop and bakery.
More Kentucky farmers will also look into new technology, such as hydroponics, in order to produce fruits and vegetables out of season to sell at the market, said Maxey.
It's estimated that the farmers' market could yield $11.5 million in annual sales, with $6.5 million going directly to farmers.
"If you provide an outlet for them and you can provide the vision, you can say, 'Here's an opportunity for you.' Because it all boils down to that," said Maxey. "It's an opportunity. They're not going to do it unless it's profitable."
Summarizing the study last week, Pat Baxter, director of community development for Corporex Cos. of Covington, pointed out the project's economic benefit for farmers (a new outlet to sell their goods), city residents (improved quality of life), downtown businesses (more customers), and the state (larger tax base).
The project is a joint venture between Corporex, the NKY Regional Farmers Market, and the city of Covington.
"We have a lot of positive momentum on this project," said Baxter, who distributed copies of the study to the governor and state legislators early last week.
Project organizers have said they'd like the city of Covington to contribute about $2 million to the project.
But, "With our current financial situation, we're not able to contribute $2 million at this point," City Manager Jay Fossett said.
Fossett said it is possible that Covington will appropriate money in the future, but declined to say when or how much.
"It won't be until we get our finances squared away," he said. "We're negotiating with our three unions, so it's hard to even predict."
But Fossett said city officials already are investing a lot of time studying and lobbying for the project.
He said he and two other city officials recently traveled to Washington, D.C. to attend a conference on public markets. They toured four markets in the nation's capital and four more in Baltimore, talking to the people behind successful public markets.
Covington officials also have traveled to Frankfort to lobby the state Governor's Office for Local Development.
"We talked to Commissioner Ellen Williams about this project and the need for it in Covington," Fossett said. "It would serve a need we have to establish a place downtown to shop for food, and it would also become a meeting place - kind of like our Fountain Square in Covington."
While the project will require the reconstruction of nearly an entire city block, Baxter said the goal of the development is to be as inclusive as possible, meaning long-time Covington businesses like Bessler's Economy Meats Market will be invited to be part of the development.
"The object of this project is not to run people out of Covington. It's to encourage businesses to stay and work with us. It takes a partnership to do that. That's what we're trying to accomplish," said Baxter.
"We hope to have a united front with the Northern Kentucky legislative caucus," he added.
As part of the Senate Republican majority caucus, Thayer said he would work with colleagues to secure funding.
"Northern Kentucky did well in the last budget cycle, and it should continue to do well. We are part of the strong economic engine that's driving the economy in Kentucky. As a net payer of taxes to Frankfort, we certainly deserve our fair share coming back for efforts like Times Star Commons," he said.
By Jason Feldmann
The Sunday Challenger
-- Reporter Jeanne Houck contributed to this story.
About Times Star Commons
Description: The proposed development features a regional farmers' market in the block between Fourth and Fifth streets and Madison Avenue and Scott Boulevard in Covington; it would also include residential and office condominiums, a 500-seat outdoor amphitheater and much more.
Cost: $32.5 million
* $17 million from state
* $15.5 million from private investors / local governments
Economic Impact:
10-year tax revenues....................$12.13M
NKY rest of Kentucky
Jobs created during construction...............454 150
Annual new job creation, first 10 years.....378 91
10-year projected cash flow................$386.38 million $78.16 million
10-year projected earnings...................$88.45 million $29.32 million
Next Steps:
* Gov. Fletcher will decide whether or not to put the project in his executive state budget proposal.
* The General Assembly will then consider whether the project belongs in the state budget.
Source: "An Economic Impact Analysis of the Times Star Commons Project, Covington, Kentucky," Dec. 15, 2005, prepared by Dr. Lynn Burbridge, regional economist, and Dr. Gary E. Clayton, professor and chair of economics and finance, both at Northern Kentucky University; and Dr. Robert Premus, professor of economics, Wright State University