By Don Owen
NKyTribune reporter
When updating the status of the Newport SkyWheel project Monday night, Tom Fromme jokingly told the Newport board of commissioners that the upcoming attraction for the city “is not an urban myth.”
“We’ve had some challenges, gone through iteration after iteration, but the most recent design has been approved by both the U.S. Army Corps of Engineers and the city,” said Fromme, Newport’s city manager. “The SkyWheel is going to be a showpiece, and it’s going to help surrounding businesses.”
As a result, Newport’s board of commissioners voted 5-0 to approve an inducement contract between the city and the Newport SkyWheel developers that will include a $15 million Industrial Revenue Bond (IRB) to help finance the construction of the project. There is no cost to Newport and its residents, a fact that was pointed out by Fromme and the commissioners at Monday’s night’s meeting.
A conceptualization of the Newport Skywheel. (Courtesy of Koch Development)
“Koch Development out of St. Louis is the requestor of the IRB,” Fromme said of the Newport SkyWheel developers. “We have to authorize the bond and those are then voted on downstate. There’s a hearing officer that hears requests for those at the state level and they make the ruling.”
Fromme said he expects the ruling on the bond will be made within the next 60 days.
Commissioner Tom Guidugli also emphasized that Newport residents can be assured the project is not going to cost them. “There is no city money, zero dollars,” he said. “We are just helping facilitate the project.”
Fromme said once the SkyWheel is open for business, an estimated 400,000 riders per year will visit the riverfront attraction, which will be located north of the Newport Aquarium and Mitchell’s Fish Market. He pointed out that market studies determined the estimated yearly riders for the SkyWheel.
“Those numbers are going to be a booster to those businesses near Newport on the Levee,” Fromme said. “It will also have family-friendly ticket prices to ride the SkyWheel, and this is going to be a magnificent addition to the riverfront. It’s going to be a real showpiece.”
In addition, Fromme said the Newport SkyWheel will be a year-round attraction because of the climate-controlled gondolas. He said the expected timeline for completion is nine months after construction begins.
In other items Monday night:
• A public hearing was held regarding a proposed real estate tax rate of $2.90 per $1,000 valuation. Fromme said there has been a misconception about Newport tax rates over the years and described it as a “full-service city” in regard to the taxes.
“Newport is the third-lowest in terms of tax rates out of 16 entities in Campbell County,” he said, pointing out that Newport does not have a fire district and a separate tax for the fire department, which would result in a higher tax for residents. “Our fire department is paid for through the general fund revenues. Fire districts have their own taxing authorities. We have one tax rate and everything is included.”
Guidugli agreed with Fromme and said “citizens are unaware” there is no sales tax in Newport or any city in Kentucky.
“Local municipalities in Kentucky have no power to impose a sales tax at all,” Fromme said. “It’s all done through the state. There’s a lot of confusion with Newport bordering Cincinnati because they do have local sales tax there run through Hamilton County, and that’s in part how they subsidize those stadiums.
“A lot of people think because we’re in the same region, that Kentucky has the same taxation as Ohio, and we don’t.”
Contact the Northern Kentucky Tribune at news@nkytrib.com
