The industrial building at 135 W. 38th St. in Latonia, located behind the Latonia Commerce Center, is the city's first new industrial space in decades.

Having implemented much of Garner Report’s ideas,

City updating economic development strategy

COVINGTON, Ky. – In July 2019, Atlanta-based Garner Economics unveiled a 59-page economic strategy that highlighted hard truths, challenges, and strengths about Covington – and put forth an action plan for attainable and sustainable growth.

City officials didn’t throw that report – titled “From Opportunity to Action” – on a shelf to gather dust.

Instead, they have used it as an agent of change. Over the last five years, City leaders took inventory and implemented many of the report’s recommendations, which identified industry sectors in which the City should best focus development efforts and policy changes that would make it easier to do business in Covington.

It’s been so helpful that the City wants to do it again: Last week, officials issued a Request for Proposals (RFP) that seeks a new multi-year, citywide economic development strategy that will clearly define the vision and set goals to keep Covington’s dynamic momentum on track.

“Five years ago, the Mayor and Commissioners adopted an economic development strategy which provided staff with a road map for success,” said West. “The results have been beyond expectations. In order to continue the momentum, it is time to revisit that strategy and account for new realities and market forces.”

This new strategy aims to expand on the previous report and address hot button issues that have emerged since the last report was issued. These new realities include work-from-home implications following the COVID pandemic, a high-interest rate capital market and its effect on businesses and real estate development, and the rising costs of housing.

The reality check

Hired by the City in 2018, Garner Economics launched into research that engaged residents and business officials and analyzed the City’s policies, incentives, funding resources, and other tools. Heavy public engagement and weigh-in from community stakeholders helped develop the firm’s analysis. A year later, on July 23, 2019, the firm presented “From Opportunity to Action” and a supporting 98-page document called “Competitive Realities” to the Board of Commissioners.

The report defined “optimal targets” and industry sectors and presented recommendations. Its strategy detailed the asset development, marketing, and organizational changes that the City, its Economic Development Department, and its partners needed to implement. The core of its strategy lay in Covington’s competitive advantages and disadvantages when compared to the region, the state, and the nation. There were communities with qualities and aspects that the City aspired to emulate, replicate, or adopt.

So the City rolled up its proverbial sleeves and got to work.

Five-year ‘report card’:

The City gets high marks on follow through, having implemented -- or is in the process of implementing -- many recommendations, which center on three areas: attracting talented workers and new businesses, improving City support, and ratcheting up marketing and messaging. Some of the recommendations and how the City has implemented them:

Develop financial incentive programs to recruit talent.

• The City offers incentives designed to assist both small and large businesses and developers. The Small Business Incentives Program offers help paying startups’ rent, renovating exteriors, and restoring electric signs. Since the program’s inception in 2017, the City has invested in 148 Covington businesses.
• While not a direct recommendation in the report, in 2020 the City overhauled its Neighborhood Development Code to make the zoning process easier and more customer friendly. The new code replaced an unwieldy Zoning Ordinance that was costly and time-consuming to navigate and makes it easier to do business in Covington.

 

Continue efforts to develop the soon-to-be vacant IRS site, office space and other “real estate product.”

• Financing, development agreements, and public infrastructure are all falling into place as the “once-in-a-generation opportunity’ Covington Central Riverfront project slowly transforms the 23-acre former IRS site near the Ohio River into a new neighborhood.
• The City has also partnered on the creation of Class A office space in multiple buildings throughout downtown.

Create a plan to improve gateways into the City

• The City reviewed all gateways, identifying the Clay Wade Bailey Bridge gateway and 12th Street Bridge gateway in the Eastern Corridor as the points of focus.
• Two community engagement events were held for input. Based on feedback, the City asked state highway officials for left-hand turn signals for traffic traveling north on Main St, and turning left onto 3rd Street. The signage was immediately implemented. The City also hired Emersion Design to evaluate the gateways, gather more input, and design the gateways for functionality as well as aesthetics. The City also added a mural on Pike Street to welcome people to Covington. Emersion’s designs have been submitted.

Enhance Economic Development marketing tools and tactics.

• Covington-based Systems Insight developed the Economic Development Department’s new standalone website to provide businesses, investors, and developers information they need.

• Covington-based Durham Brand & Co. worked with the City to create the “Unapologetically, Covington” branding, which included a 144-word “manifesto,” tagline, and logo.
• As evidence of the City’s targeted marketing and messaging, the City was featured in Realm: The Journal for Queen City CEOs (“Covington’s Field of Dreams”) and on the Streetcraft YouTube video channel (“This City Gets to Start From Scratch”). The latter video was viewed more than 210,000 times (and counting) around the world.

Taking aim at the ‘optimal targets’

The report identified three industry sectors where the City should focus resources and efforts. It also listed a fourth target to enhance Covington’s quality of place (directly linked to talent attraction and retention).

The three sectors:

“All Things Office” (& New Collar Jobs) would build on the local concentration of financial service operations and design industries, and the proximity to the airport and the Cincinnati office market.

• Covington’s office sector has grown to include DeanHouston+ headquarters, BM2 Freight, IXOn Marketing, DBL Law, Keller Logistics, TW Printing, Huntington Bank, First Financial, Scooter Media, and Protective Life. Businesses tout Covington’s walkability, easy access to clients and employees on both sides of the river, and support and guidance from City staff.

“A Healthier You” (Life and Bioscience) would build off of Covington’s assets in health sciences and research, including the headquarters of the global clinical trial firm CTI, the Northern Kentucky Life Sciences Training Center, the incubator bioLOGIC and Bexion Pharmaceuticals.

• Recently, Thermo Fisher Scientific announced plans to locate a lab operation in Latonia.
• Employment growth in life science companies will continue with a $15 million Covington Life Science Lab being built near the Suspension Bridge. The idea came out of a working group the City led beginning in early 2021.

“Made in the COV” (Micro Manufacturing & Process Technology) focusing on manufacturing operations with a small footprint and niche products, such as the wrist ID and apparel maker Road ID, and builds off the City’s manufacturing heritage and infrastructure.

• Gravity Diagnostics, RoadID, Indy Honeycomb, Blair Technologies, Grainwell, and Braxton Brewing Co. are among the businesses that call Covington home.

The fourth target is “Experiencing Covington” (the Experiential and Entrepreneurial Economy) to add local and unique boutique retail along with other establishments that emphasize the character of Covington and build off the “robust support ecosystem” for startups. Covington encourages and awards authenticity.

• Covington’s Innovation Alley helps grow ideas into sustainable businesses, while Aviatra Accelerators helps women start and sustain businesses by providing resources and guidance.
• To date,148 Covington businesses have received assistance through the City’s award-winning Small Business Incentive Program. The program also offers a new Historic Electric Sign Program, offering a forgivable loan to help small business owners restore historic electric business signs that enhance Covington’s nighttime aesthetic and spur business.
• In 2021, the City forged a relationship with the African American Chamber of Commerce of Greater Cincinnati to offer black entrepreneurs both technical assistance and a meeting space in Covington.
• The Northern Kentucky Collaborative for Economic Engagement is a one-stop shop with more than 20 partners, and facilitates easy connections for small businesses and entrepreneurs to expertise in data, health, tech, logistics, and innovation.
• A Small Business Development Office, through the Kentucky Small Development Center, offers entrepreneurs free one-on-one coaching.
• Likewise, the Northern Kentucky Community Action Commission offers technical assistance for small- and home-based businesses that may need extra support.
• Each year, the City recognizes businesses via its Authenti-CITY awards program.

 

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City officials say the report has been pivotal in accelerating growth and sophistication in the local economy. When presenting job attraction opportunities and successes to the Commission, West and his team have fit each project into a targeted sector, constantly reminding leaders of the applicability of the plan.

“We can attribute much of Covington’s economic success in the past five years to the From Opportunity to Action strategy and the support of our Board of Commissioners for implementing it,” said West.

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The deadline for the RFP for Professional Economic Development Strategic Planning Services is no later than 10 a.m., Thursday, Aug. 15. See the City’s procurement portal. Note you will need an account.

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