The Newport city commission approved an order authorizing the issuance of $18,000,000 in taxable industrial revenue building bonds (IRB) for a development on E. 11th Street.
According to the Commonwealth of Kentucky, IRB can be issued by municipalities to provide a lower interest rate for the financing of a project, but the issuer, in this case the City of Newport, is not obligated for the debt repayment. IRB have become a common method for local development projects to progress.
The development is located at the northwest terminus of Watch Point Lane at 1129 E. 11th Street in Newport. The development site overlooks Newport and has a clear skyline viewpoint of downtown Cincinnati. The plan is for the construction of 18 single-family dwellings on the 1.5 acre site.
The IRB will assist Newport Eleven, LLC, the developer, in the financing, acquisition, construction and equipping of the development and related improvements within Newport to maintain and improve the facilities and infrastructure.
The topography of the development is unique, as the construction will take place on top of the hill overlooking Memorial Parkway. The topography coupled with new infrastructure development has provided challenges for construction, city officials said.
“The cost of acquisition was one thing that may have been overcomable, but the cost of infrastructure was very high. It was driven by our (City of Newport) requirements, and the topography of the development that we’ve had problems with in the past so we were more than cautious to make sure everything was done right,” Newport City Manager Tom Fromme said.
On December 13, 2021, the Commission authorized a memorandum of agreement related to the acquisition and construction of the project.
“This has been a very difficult project,” Fromme said during the Dec. 13 commissioners meeting. “They (the developers) have experienced some extraordinary infrastructure costs. This is why we strongly recommend we adopt IRB for this project.”
