The former Disabled American Veterans site in Cold Spring is regaining a purpose after years of litigation that delayed development.
The Cold Spring Planning and Zoning Commission approved a proposed zone change and stage one plans for a mixed-use development on the 27-acre site at 3725 Alexandria Pike, at the corner of Alexandria Pike and Industrial Road. The site, which has the working name “Cold Spring Town Center,” by developer Al Neyer LLC, was approved for two proposed medical office buildings with three retail and/or commercial buildings on the east side of the development.
The western portion of the site has been labeled as “future development.”
The plans only show the general size and type of tenant in concept, and no contracts are in place with any specific tenants. Though the planning commission approved the plans, they must still be passed by the city council.
The future development area, as well as the three retail/commercial buildings, will require a stage one plan review when it is considered for development. The uses must comply with the mixed-use planned development zone and could include office, commercial, and/or residential uses.
The initial phase of the site is anticipated to be a blend of the following future land uses.
Office and non-retail commercial
According to the planning and zoning packet, “the office and non-retail commercial category is intended to provide for areas of business growth in the city that may include office uses, research and development uses, institutional (e.g., hospitals or colleges), or a combination of such uses but where retail, commercial uses (e.g., restaurants, grocery stores, book stores, etc.) are limited to protect an area of the city for job-focused growth. Limited retail uses such as coffee shops, banks, or restaurants may be appropriate when they provide needed services to the surrounding businesses.”
Neighborhood commercial
According to the planning and zoning packet, “the future development phase should consider a blend of office and non-retail commercial, neighborhood commercial and multi-family residential. The city has a strong demand for well-designed, moderate-density, multi-family dwelling units that include townhomes, rowhouses, and low-density apartment buildings. However, care should be taken to balance the commercial and residential base throughout the development.”
“Contextual development was important to us, and as we were developing these plans, we were taking a look at the existing character of the Alexandria Pike corridor and wanted to make sure that lived in that same world,” Brian Yangyuen with Al Neyer said.
The site has been held up by a years-long eminent domain battle between the city and Campbell County Schools, which wanted to turn it into a middle school. The Campbell County Board of Education voted to settle the lawsuit in July 2023, ending the dispute.
The city announced in December 2020 that it planned for a healthcare facility to replace the DAV building.
Dec. 4, 2020: DAV announced it would sell its longtime location in Cold Spring at 3725 Alexandria Pike and build a new DAV facility in Erlanger at 860 Dolwick Drive. The city expressed interest in the property.
Dec. 14, 2020: Cold Spring announces plans for a healthcare facility to replace the DAV building. Mayor Penque said the city has been working to attract a major healthcare provider to the site and said the city had talked to developers for over a year. Penque did not divulge the provider but did say the developer was Al. Neyer.
At the same time, the Superintendent of Campbell County Schools (at the time), David Rust, put property acquisition on the school board’s meeting agenda that night for an executive session.
Dec. 16, 2020: The Campbell County School Board announced the decision made in their executive session that they would pursue the idea of taking the property through eminent domain.
Penque expressed dismay and questioned why the school board had not approached the city. Rust said they told the city in January 2020 that they were interested in the DAV property for a new middle school. This second middle school would serve the northern tier of the Campbell County School District population.
Dan Ruh, a representative for developer Al. Neyer said they had been working for almost a year to develop the healthcare facility project and have a binding agreement with the city.
At this point, the city and developer brought up issues with a school on that property, such as increased traffic and an extensive gas line that would be costly to remove and had to be removed. Ruh said he would happily sit down with the school board to find another suitable site.
Dec. 18, 2020: Cold Spring approves the purchase of the DAV property and plans Industrial Revenue Bonds and PILOT for school taxes.
Dec 31, 2020: The Cold Spring City Council votes to sue the Campbell County School District and/or KY Board of Education for interference with its purchase of the DAV property. Brandon Voelker sends a letter to the school board’s attorney Jason Reed, stating the reasoning behind the suit.
Jan. 13, 2021: Reed filed a suit against the city, stating that some of the city’s special meetings to discuss the DAV property in December 2020 did not follow the law concerning public input and advertising the meetings properly. The school board demanded any action taken during those meetings be rescinded by the city.
Voelker responded that the city had some glitches with Zoom and that they would switch to in-person-only meetings and announced a new meeting that would essentially discuss the same things the meetings in question had discussed.
The attorney general ruled that the city had violated the open meetings laws.
Jan. 28, 2021: Cold Spring proceeds to purchase the property from DAV. The city also offers to help the schools find an alternative site. The developer has a purchase agreement with the city so that the city would become the owner, and Al. Neyer becomes the developer.
The city also filed a complaint against the schools for intervening in the city’s purchase of the property. Reed said the school was not discussing the purchase of the property and that condemnation was not a purchase.
After some complaints that the schools also had not cleared their plans with the Kentucky Department of Education, Reed said they didn’t have to unless they moved ahead with the condemnation. He said whether the school district could condemn was up to the courts and was expected to be ruled on in 90-120 days.
Feb. 5, 2021: St. Elizabeth is identified as the facility interested in the site. The agreed-upon purchase price for the property by the city is $6.5 million.
A commission of three county residents was selected to determine the fair market price for the property, and they set it at $5.5 million for eminent domain purposes, as the school would have to compensate DAV if that went through.
Feb. 17, 2021: Campbell County Circuit Court Judge Daniel Zalla ruled that Cold Spring could purchase the DAV property. The court’s ruling established the city’s interest in the property and the right to intervene.
The school board filed a lis pendens (pending legal action) on the property to create a lien that requires the issue to be settled before the property could be sold.
Feb. 26, 2021: The city votes to file an appeal on its open meetings violations.
March 30, 2021: The city moves ahead to authorize the mayor to purchase the property.
May 14, 2021: The city decides not to appeal the open meeting’s decision and pays the fines.
Voelker files a complaint on Reed that says Reed has been using his work computer and resources in his role as a staff attorney for the Cabinet of Health and Family Services in his private practice work.
The Cabinet of Health and Family Services conducts an internal investigation.
July 2021: Campbell County Circuit Court Judge Julie Ward held a preliminary status hearing on the case, and a ruling was expected in October.
Oct. 1, 2021: Cold Spring purchases the property, and Penque announced that Children’s Hospital expressed interest. The Children’s Hospital denied this, and the mayor retracted his statement.
Nov. 5, 2021: The Kentucky Department of Education issues a ruling that it approved the Campbell County School District to pursue eminent domain but outlined a few things the schools needed to do first to satisfy the department. Still no ruling on the case.
Nov. 30, 2021: Ward ruled that the school board is justified in taking the property through eminent domain. It is noted that the school board bid on the site first, somewhere between $4 and $5 million, but DAV rejected their offer. The school board decided to pursue eminent domain.
Dec. 7, 2021: The school board takes possession of the property. The school submitted the recommended value of $5.5 million to the courts.
The city votes to file an appeal.
March 4, 2022: The city files the appeal.
Dec. 16, 2022: The Commonwealth of Kentucky Court of Appeals overrules Ward’s decision, stating that the city being a public entity, cannot be subject to eminent domain.
Dec. 21, 2022: The Kentucky Court of Appeals reversed the Campbell County Circuit Court’s decision that the board of education was entitled to eminent domain to acquire the former DAV site.
June 7, 2023: The Kentucky Supreme Court agreed to review the appeal over their previous decision on the ability of the Campbell County Board of Education to purchase the site by eminent domain.
July 10, 2023: The Campbell County Board of Education voted to settle the lawsuit.
Aug. 18, 2023: Cold Spring City Council approved a measure at a special meeting last week to secure a $5.5 million loan to repay the Campbell County School District for money it provided to the courts to seize the public property for a new middle school in 2021.
Timeline
Many residents attended the meeting and expressed their disapproval of the proposed development.
One of those residents was former longtime Cold Spring Council Member Lou Gerding. He said citizens were told that the development would have less impact on the area than the previously proposed school.
“The mayor, when they purchased the property, told the citizens that it was going to be medical facilities and possibly a hospital,” Gerding said. “That’s what he told us when people were asking, ‘Why are you buying the DAV property.’ Now what do we got? Could be some medical offices there but it could be any office building.”
Gerding wasn’t the only past council person to speak against the development. Former Cold Spring Mayor Mark Stoeber also addressed the commission.
“This is probably one of the largest and most important zone changes the city has faced in my history in the city because of its location, and it’s putting one of the heaviest commercial uses of the city in the north end of the city, where it was never designed to be used,” Stoeber said.
Stoeber said he didn’t know why the commission was considering a mixed-use development zone given the size of the site. He said the city had previously approved that zone for lots that were 60 or 70 acres.
According to the developer’s plans, the site “reflects the needs of the citizens of Cold Spring and will provide a valuable asset for the community regarding services provided as well as revenues generated for continued financial success with the city, schools, county and commonwealth.”
The site encompasses approximately 27 acres spanning three parcels and is currently zoned as an industrial park. All structures on the site are planned to be demolished. Al Neyer requested a zone change, which was approved, for mixed-use development and neighborhood commercial. The zone map change could allow for, but is not limited to, specialty retail, restaurants, banks and professional services.
The main entrance to the development will utilize the existing light on Alexandria Pike across from Furniture Fair. Right-in and right-out access will also be available off of Alexandria Pike. A separate entrance and exit will also be utilized off of Industrial Road.
A traffic study will be conducted as part of the stage two plans.
Given what residents said during public comment, Cold Spring Planning and Zoning member Steve Popovich moved to table the item for more information.
“This decision is made by the citizens of Cold Spring,” Popovich said. “It’s not just us; we’re all representing you. We’re also, of course, very concerned about the long term of the city. I’ll say this, there are a lot of concerns, and boy was I educated tonight.”
Popovich said the decision would be transformative for the city and that it was not a decision the commission could make in a two-hour meeting. “In my opinion, this requires a whole lot more study on our part,” he said.
No other member of the commission seconded Popovich’s motion to table the plans.
According to the developer, they plan to move in phases, starting with 17 acres.
“Our development will enhance the appearance of Cold Spring and contribute significantly to the quality of life of its residents,” the developer said in its plans. “Not only will the aesthetics we plan to incorporate into this development provide a high‐quality appearance, but the tenants we acquire will present a professional neighbor for the community.” The future development area of approximately 10 acres will require a separate stage one plan. The area may include residential or commercial uses.