A zoning change that would allow Covington-based developer Orleans Development to convert an old warehouse building in Covington’s Westside neighborhood into apartments has been sent to the city commission for final approval following a request from a resident.
The property in question is located at 1564 Banklick Street in the city’s Westside neighborhood near the intersection of West 16th Street and Russell Street. Covington resident Thurman Wenzl appealed the approval, stating the developer’s proposed rent ranges didn’t “speak to the needs of the community,” according to records from Kenton County Planning and Development Services. The developer put the rent range of the apartments between $1,150 a month and $1,495 a month, depending on their size. Wenzl attended the commission meeting on Tuesday, but he did not speak.
The 130-year-old building was originally part of an old cordage manufacturer before later becoming a warehouse. The Kenton County Planning Commission recommended a zoning change for the property in early December.
Usually, zoning change recommendations stop at the planning commission, but city residents can challenge the planning commission’s recommendation within 21 days if they take issue with it. Wenzl successfully appealed the recommendation – on the last day it was allowable, no less – which escalated final approval of the zoning change to the city government.
From there, the city commission has two options. First, it can hold a new public hearing similar to the ones held by the planning commission where residents can come out and speak on the development. No one spoke against the development when it came before the planning commission.
Alternatively, they can move the zoning change through the normal legislative process, wherein an ordinance changing the zone goes through two public readings and votes without an additional public hearing. Residents can still speak about the development at meetings where readings take place, but the public comment procedures for normal meetings tend to be more strict than public hearings.
The commission elected to forego a public hearing at their meeting on Tuesday, meaning that the first reading for the zoning change will take place at the legislative meeting next week.
Tony Kreutzjans, the founder of Orleans Development, attended Tuesday’s meeting and spoke with the commissioners about his vision for the building.
“I see this property as a burden, a blight on the community,” Kreutzjans told the commission. “Let’s face it, it’s a junkyard in the middle of the neighborhood. I’ve wanted to do this project for over 12 years because of the impact it will have on the neighborhood. It will be transformative. In lieu of the junkyard, we will bring 39 unique and desirable apartments. The neighbors I’ve talked to are excited.”
The plan is to convert the building into a four-floor apartment complex with 39 units (a single studio apartment and 38 one-bedroom apartments) and 52 off-street parking spaces.
City staff members and Kreutzjans (and the county staff members with the planning commission in December) touted the conversion as a means of bringing more rental properties to the city.
They cited a housing study released in 2023 from the Northern Kentucky Development District, which suggested a supply deficit in smaller rental properties at all income levels.
About 62% of the residents in the census tract in which the development will occur are listed as rent-burdened as of 2022, according to the American Community Survey, an initiative from the U.S. Census Bureau that makes statistical estimations from census data.
A study of housing in Northern Kentucky has revealed troubling trends for housing in the region, with the largest need being for “workforce housing” for households earning between $15 and $25 per hour, with monthly housing costs between $500 and $1,500. The region needs about 3,000 more housing units to provide for people within that income range, according to the study. The demand for one- to two-bedroom rentals and owned properties consistently exceeds their supply, while supply for three and four-bedroom properties consistently exceeds demand. The study suggests that the region needs to build 6,650 housing units to support economic development in the next five years, which equates to 1,330 units per year. Read more here.
Understanding NKY’s housing shortage
Rental households must spend 30% or more of their income on rent (not including utilities, insurance and other housing expenses) in order to be considered rent-burdened. A tenant living in the complex making $52,900 or less would be rent-burdened if they’re paying the complex’s median rent of $1,322.50 a month.
About 45% of all Covington renters are rent-burdened, according to the American Community Survey. The median household income in Covington was $53,770 as of 2022.
Kreutzjans stated the plan was to get the building onto the National Register of Historic Places and that his company plans to use historic tax credits to help fund the conversion.
The commissioners expressed support for the development.
“Not only is the work your company does fantastic, you guys are fantastic landlords, as well,” said Commissioner Shannon Smith.
“Brick by brick, house by house, block by block. Thank you, Tony, thank you for investing in our community,” said Mayor Ron Washington.
See the preliminary development plan, which includes floor plans, elevation plans, and maps, below.
The next meeting of the Covington City Commission will take place on Tuesday, Jan. 14, starting at 6 p.m. at Covington City Hall on Pike Street.
