Kenton County has approved a decade-long payroll tax incentive to support Fischer Homes’ relocation of its corporate headquarters.
In early May, Fischer Homes, the largest homebuilder in Greater Cincinnati, announced it was relocating its corporate headquarters from Erlanger to Covington. Fischer Homes will move to the revitalized First District Elementary building on Scott Boulevard, which is currently home to the Covington Classical Academy and Dean Houston.
The move will result in the relocation of nearly 350 jobs to the city’s urban core, generating greater payroll tax revenue for Kenton County.
To incentivize the move, the Kenton County Fiscal Court passed an ordinance that approved a 50% tax credit on the occupational license fees collected by the Fischer Group from its employees. The legislative body conducted a second reading of the ordinance on May 28, following its first reading at a meeting on May 13.
The ordinance will permit Kenton County to credit 50% of the occupational license fees, which is approximately 0.6997% of income up to the Social Security limit, from the jobs that Fischer Homes is relocating to Covington. The tax credit will be available for 10 years, commencing on Jan. 1, 2026, and expiring on Dec. 31, 2035.
Kenton County Commissioner Jon Draud lauded the deal, calling it a tremendous accomplishment.
“350 jobs, $90,000 average salary–that’s a pretty big deal,” he said.
At the May 13 meeting, Kenton County Judge/Executive Kris Knochelmann stated that the move will be beneficial for county revenue.
“It’s going to be an exciting project that’s going to move the Fischer Group companies from their Boone County location into Kenton County, and grow in Covington, both physically and economically,” Knochelmann said. “And allow for the hopefully long-term success of that local company to deal with the costs of being on the urban side compared to their location.”
Kenton County is not the only governmental entity that’s providing public incentives for the move. Regarding the relocation of 350 jobs, the City of Covington authorized a 1.25% payroll tax incentive for Fischer Homes, which is projected to generate approximately $3.7 million in revenue over a 10-year time frame, according to city documents.
Furthermore, the Covington Economic Development Authority authorized a transfer of up to $100,000 in tax incremental financing (TIF) funds, which would provide 300 parking spaces for Fischer Homes employees in the Midtown Garage.
Tax Increment Financing is a tool used by municipalities to help finance infrastructure projects and offset development expenditures. Property taxes generated from a specific property are diverted away from general city services and then redirected back into the development.
The building, which was constructed in 1939, has undergone extensive renovations in recent years. Gateway Community & Technical College purchased the property in 2010 after the permanent closure of Two Rivers Middle School. The school reintegrated the building into the city’s urban fabric.
After 10 years of operation in the building, Gateway sold it to Covington Kentucky Development LLC, headed by the owner of the van Rooyen Group, Guy van Rooyen–the developer behind the Hotel Covington, in 2021. van Rooyen, along with the Fischer Group, plans to invest approximately $11 million into the building, expanding its square footage from 65,000 to 95,000 square feet, according to a city press release.
Fischer Homes expects to complete the relocation by the end of 2027. Over time, Fischer Homes will move all its related subsidiaries into the building, including Grand Communities, Victory Mortgage, Homestead Title Agency and Acendion Collective
