Covington Building Could Become Home to Offices
The old building at 533 West Pike Street in Covington is slated for a significant facelift and new use.
The Covington city commission on Tuesday was expected to award incentives to CB Property Holdings, which purchased the building in August for $540,000 according to Kenton County property records.
The building was previously home to plumbing and paint businesses.
Since it became vacant, it has been very difficult to lease, Covington Economic Development Director Tom West said.
So, the plan is to change what is offered there.
"The new owners plan to rehab it and bring it up to Class B standards for office development," West told the city commission last week.
In commercial office real estate, Class B office space typically refers to older buildings with quality tenants and management, while Class A usually refers to new offerings on the market.
CB Property Holdings owns multiple buildings around the region and West said that it plans to mimic the renovation of a property at Eighth and Russell streets, which recently became home to Gravity Diagnostics, the firm heavily involved with local COVID-19 testing efforts.
"We do have demand for that type of space," West said.
CB Property Holdings plans to invest more than $330,000 in the renovation, West said.
In return, the City of Covington would offer a 1.25% payroll tax incentive to all new jobs created there for five years.
West said that that would result in about $59,000 in payroll tax collected from the site by the city over the period of time.