What is a DRD?
Section 5709.45 of the Ohio Revised Code authorizes municipalities to implement a Downtown Redevelopment District which can cover not more than ten (10) acres enclosed by a continuous boundary in which a least one historic building is being, or will be, rehabilitated.
DRD are utilized to promote rehabilitation of historic buildings, create jobs, and to encourage economic development in commercial and mixed-use commercial and residential areas. They are also utilized to fund transportation improvements that will benefit areas in and around the DRD.
The DRD redistributes 70% of the improvement value of a parcel to the DRD fund. The remaining 30% of the value goes to the property taxing authorities as it would traditionally. The DRD fund can then be utilized to create loan programs, facilitate economic development, and to fund roadway improvements.
The DRD can last for up to 30 years before it needs to be reauthorized or recreated.
DRD Map and Parcels
The Village adopted a map and specific parcels within the Village DRD, which is noted above. These parcels are eligible for funding through the DRD.
Covington DRD
Authorization
The Village initially authorized the DRD under Ordinance 16-19 and a DRD Fund #80 within the Village of Covington budget was authorized under Ordinance 19-19. The DRD was re-authorized and formally approved by the State of Ohio in 2023.
DRD Operating Committee
The DRD operating committee whose primary task is to make recommendations to the Village of Covington Council was created in 2023. This committee meets on a regular basis, and will begin to meet with property owners and business owners within the DRD to determine what issues they face and how the DRD and the Village can assist them. They also will market the DRD and its programs to developers and other business interests in Covington.
The DRD Operating Committee meets on the fourth Monday of the month at 2pm at the Covington Government Center (1 S. High St.).
The DRD Operating Committee is made up of the following people, which is authorized through the creation resolution:
- Lee Harmon, Mayor, Covington
- Jordan Hodges, Village Administrator, Covington
- Amy Welborn, Planning Commission Member, Representative to Council
- Dr. Joseph Hoelzle, Superintendent, Covington Exempted Village School District
- Chris Haines, Downtown business owner
- Designee (TBD), President, Covington Chamber of Commerce
Funding
The Village receives 70% of the property taxes from the 35 properties within the DRD and is able to utilize that funding each year for programs, loans, infrastructure, and economic development in the area.
The Village will post the fund balance here once Miami County Auditor’s Office has verified the amount each year.
Strategic Plan Priorities
The DRD funding will initially go towards projects that bring in new business, help develop or grow existing business, or facilitate infrastructure needs of business owners to redevelop their properties.
DRD Revolving Loan Fund
The Village of Covington will authorize a revolving loan fund once the DRD has funding. The fund will focus on the following:
- Make loans to property owners within the DRD to renovate buildings
- Make loans to small business owners within the DRD to expand and renovate their business
- Make loans to small business owners and entrepreneurs that want to locate their business in the Covington DRD.
This fund will solicit funding from the Ohio Development Services Agency – CDBG program, local banks utilizing their Community Reinvestment Act commitments to help underserved communities, and other sources.