Cincinnati-based Sanders Development Group will be the next developer for the Covington Central Riverfront site, located on the old site of the IRS building.
This follows the approval of two development agreements Tuesday night.
“With what the city invested, they were really intentional around creating a walkable community,” said Sanders Group Principal Robert Sanders (not to be confused with Commonwealth’s Attorney Rob Sanders) when asked why he chose this specific site. “And when we hear walkable and housing, that’s when we’re all in. Really, that was the main component.”
The Sanders Group’s proposed building on the site’s D block, which will be carved into three smaller land parcels, each spanning just under 0.4 acres. According to city documents, four townhomes and two carriage houses will be built on two of the parcels at an estimated construction cost of $3.8 million.
The remaining parcel would see the construction of 15 one-bedroom apartments and about 4,000 square feet of commercial space.
“That could be a restaurant, it could be a shop, that could be an office of some kind,” said Economic Development Director Tom West – at a construction cost of about $4.8 million.
The Sanders Group is offering to buy up the parcels from the city at $200,000 each, well below the parcels’ average appraised market value of $369,763 as of September 2024. City documents state that underwriting “demonstrates that a lower land cost is necessary to make the development pencil. Other factors include the fact that the developer is a smaller local developer and has not requested any additional incentives. This sales price translates to approximately $1.5 [million] per acre.”
The Sanders Group will not seek any economic development incentives from the city for the deal. The city expects about a 16% annual return on investment from the first parcel sale and 9% on the other two parcels and predicts collecting about $3 million in tax revenue on the development over the next 26 years.
Sanders confirmed that the housing at the site would be market rate, but said it was too early in the process to know the sale and rent prices. They expect to have construction completed in about two years.
Mayor Ron Washington complimented the developers in their decision to come to the city.
“I think it blends really in well with our city,” Washington said.
The City Commission eventually cast unanimous votes to approve the disposition and development proposals for the land parcels.
View renderings of the proposed development below:
Renderings of the proposed development on Block D of the IRS site. Renderings produced by the Sanders Development Group. Renderings provided by the City of Covington. 
Renderings of the proposed development on Block D of the IRS site. Renderings produced by the Sanders Development Group. Renderings provided by the City of Covington. 
Renderings of the proposed development on Block D of the IRS site. Renderings produced by the Sanders Development Group. Renderings provided by the City of Covington. 
Renderings of the proposed development on Block D of the IRS site. Renderings produced by the Sanders Development Group. Renderings provided by the City of Covington. 
Renderings of the proposed development on Block D of the IRS site. Renderings produced by the Sanders Development Group. Renderings provided by the City of Covington.