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.
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…