Fort Mitchell approved an interlocal agreement with Kentucky Bond Development Corporation last week during a special meeting Friday to discuss funding construction at the former site of the Drawbridge Inn.
The 26‑acre development in Fort Mitchel, known as the Fort Mitchell Gateway, is slated for a major mixed‑use redevelopment that will include restaurant and retail space, two St. Elizabeth medical office buildings, and The Ormsby, a 203‑unit luxury senior living community and a 48-bed health center, following its approval by the Kenton County Planning Commission in August 2024.
The Kentucky Bond Development Corporation is a nonprofit entity established by the Kentucky League of Cities to serve as a conduit issuer (a tax‑exempt bond structure in which a state or local government issues municipal bonds and applies the proceeds to a project) for projects sponsored by member municipalities.
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It functions under an interlocal cooperation agreement authorized by Kentucky law and federal tax regulations and is recognized as a political subdivision of the Commonwealth of Kentucky for purposes of issuing tax‑exempt debt. Interest from conduit bonds is generally exempt from federal income tax, and the borrower repays bondholders using revenues from the project, not from the government’s general budget.
Financial Services Manager at the Kentucky League of Cities Steven Pickarski facilitates economic development activities with local municipalities.
“So we act as the administrator for the Kentucky Bond Development Corporation to facilitate economic development activity for our communities,” Pickarski said. “We can kind of coordinate some of these activities that are coming to ensure that they meet kind of our mission base before we approach the cities to allow us to act on behalf of them for the better interest of the totality of the Commonwealth.”
The face value of the bond issuance is capped at $250 million, Pickarski told LINK nky, noting that the final amount may come in below or above initial estimates but cannot surpass that limit.
A multitude of Kentucky municipalities have entered into interlocal agreements, resulting in 44 separate bond issuances statewide totaling roughly $2.6 billion, Pickarski said.
Fort Mitchell is the sponsoring city of the Fort Mitchell Gateway, and the Kentucky League of Cities and the Kentucky Bond Corporation cannot issue without approval from a sponsoring city.
“I think we’re probably about 30 some odd cities that have joined to allow us to issue that because we, as an entity, as Kentucky League of Cities and the Kentucky Bond Development Corporation, cannot issue without the sponsoring city saying yes,” Pickarski said, “It’s much like the cities open the door, and the borrowers then have this new access channel to reduce the rates down from a commercial rate to an exempt rate, which is slightly less, which makes the project, in terms of financial capacities, more tolerable.”
City Administrator Edwin King said that this interlocal agreement with Kentucky Bond Development Corporation for bond issuance for construction of the Ormsby will allow for a better streamlined process for the developers and less administrative burden on the city. King said that the special meeting today was called because Fort Mitchell does not want to delay the project.
Mayor Greg Pohlgeers praised the Kentucky League of Cities as a reputable partner that has kept Fort Mitchell’s interests at the forefront. He noted that Fort Mitchell will serve as the originator of the bond but will bear no financial liability, and that the city will also contract with Dan Blank, whose fees will be paid from the bond proceeds.
The next Fort Mitchell city council meeting is Aug. 17, 2026 at 6:30 p.m. at the Fort Mitchell City Building, 2355 Dixie Highway, Fort Mitchell, KY 41017. The meeting is open to the public.
