A Significant Win for the Redevelopment Efforts of the NKY River Cities
The Catalytic Fund has been certified by the U.S. Treasury Department as a community development financing institution (CDFI) which opens the development corporation to federal funds such as Financial Assistance Awards, allocations of New Market Tax Credits, and bond guarantee programs that are administered annually.
That could mean big things for the redevelopment of the urban areas of Covington and Ludlow in Kenton County and Newport, Bellevue, and Dayton in Campbell County.
It is the first organization in Northern Kentucky to achieve the significant designation.
“Being recognized as a CDFI is both itself an achievement and also will provide more access to important resources in the future,” said Jeanne Schroer, president and CEO of the Catalytic Fund. Schroer has made many references over the past few years to the organization's desire to become a CDFI and the lack of one in Northern Kentucky was among the reasons cited last year when The Hotel Covington project did not receive New Market Tax Credits.
“This certification would not have been achieved without Jeanne Schroer’s leadership and the dedication and hard work of Jeanne and her staff. It expands the foundation for future success” said former Covington Mayor Chuck Scheper, chairman of the Catalytic Fund and Bexion Pharmaceuticals.
The Catalytic Fund provides financing, technical assistance, and development services to execute real estate development projects in the five aforementioned River Cities. It is the third CDFI in Greater Cincinnati and 12th in Kentucky. It provides capital to finance real estate development/redevelopment projects via a $10,000,000 investment fund to fill gaps between traditionally underwritten loans, developer’s equity, and project costs. Although the Catalytic Fund expects its capital to be returned, it can be patient and flexible allowing time for the project to succeed.
Some of the Catalytic Fund’s recent investments include:
The Market Lofts – Renovation and adaptive re-use of vacant building for market rate apartments
Pike Star – Mixed-use historic renovation project creating commercial space for a regional informatics accelerator and mixed income apartment units
Mutual Building – Conversion of long vacant but historically significant office building to street level commercial space and upper floor market rate apartments.
The Catalytic Fund also provides development services to structure and execute complex real estate transactions such as the property assemblages and lease negotiations resulting in converting two blighted properties to high impact community facilities, the Life Learning Center and the Kentucky Career Center in Covington. It has also taken a significant role in the quest to redevelop the historic Marianne Theater in Bellevue and will host an urban living tour of Covington in the spring and of Newport in the fall.