(A) The property located at 1324 Madison Avenue, Covington, KY (the “property”) was developed by the City of Covington for the purpose of providing leasable office and program space for the public workforce system. The annual proceeds of the lease payments, after costs for management and repairs, are dedicated to furthering economic development throughout the city. The cost of designing, developing, improving, operating, repairing, and maintaining the property and its improvements should therefore be allocated, to the extent practicable, to the city. In order to provide revenue to fund those costs and to fairly allocate those costs, a 1324 Madison Avenue Capital Reserve Fund ("the Fund") is established.
(B) A minimum of $110,000 of the annual lease proceeds collected for office space at the property shall be deposited into the Fund until a balance of $2,000,000 is reached. The City Board of Commissioners may make additional appropriations to the Fund. All disbursements from the Fund shall be for the purposes of the Fund as set forth in this section.
(C) The 1324 Madison Avenue Capital Reserve Fund is established to provide financial resources to address major capital project needs for the existing leasable area of the structure, to increase the amount of leasable square footage or for other major capital projects at the property that have been approved by the City Board of Commissioners.
(1) The Fund may be used for debt service to repay the costs of indebtedness incurred to fund projects when funds are inadequate.
(2) The Fund shall be reevaluated every five years to determine the sufficiency of the funding level in light of the number of identified projects, the projected costs of those projects, and debt obligations, if any. After each reevaluation, the City Manager may recommend an increase or decrease in the funding level of the Fund for consideration by the City Board of Commissioners.
(3) The Fund shall be used only to support improvements to the property and may not be used for the purchase of equipment or other capital projects.
(Ord. O-15-24, passed 6-25-2024)