A nonprofit publication of the Kentucky Center for Public Service Journalism

What’s the fate of the $10 million proposed (hoped for) life science research lab in Covington?


By Jack Brammer
NKyTribune reporter

All three state representatives – two Republicans and one Democrat — who represent Covington in the Kentucky General Assembly back the city’s request for $10 million to build a life sciences research lab and are hopeful that politics will not get in its way.

The final decision by the state legislature on whether or not Covington will get the state money may not be made for several weeks.

Many times in the state legislature, the fate of major proposals depends a great deal on whether the person who introduced it is in the majority party.

Democratic Gov. Andy offered the Covington lab project in the state budget plan he presented in January. Republicans control both the Kentucky Senate and House.

Rep. Kim Moser, R-Independence, said she was not aware of the lab project until she heard Beshear talk about it. Her 64th House District includes parts of Covington.

“It would have been helpful if the city had come to us first,” she said.  “There was no heads-up on the project.”

Regardless, said Moser, “It could be a wonderful opportunity for Northern Kentucky to get such a lab, providing more jobs and attracting more life sciences research to the area. I hope politics is not a factor and our colleagues in the legislature view it as a good investment.”

Rep. Kim Banta, R-Ft. Mitchell, called the lab “a wonderful opportunity for Northern Kentucky.” Her House District 61 includes parts of Covington.

Rep. Buddy Wheatley, D-Covington, said the state appropriation for the Covington start-up lab “would help put Northern Kentucky on the life sciences research map.

“We have a tremendous start with several businesses already here and we can do even more.”

Wheatley said the companies backing the lab are “high performing in life sciences research and there is room for exponential growth in the industry.”

Gov. Andy Beshear told the Northern Kentucky Tribune, “Many cities across the nation are racing to find more research space, and for us to remain competitive for the jobs and industries of the future we need a new facility in Northern Kentucky.

“With this investment, we can support the many life sciences and biotech companies already in the region and welcome new innovators and startup companies to create more high-wage jobs and cutting-edge treatments right here in Kentucky.”

Tom West, Covington’s economic development director, said the lab proposal is “a direct response to the needs expressed by the life sciences companies located in Covington, several of which got their start here and want to help attract other entrepreneurial start-ups locate and grow here as well.”

He said the $10 million budget request originated when, during a conversation between one of the company officials and Beshear, the governor asked what Kentucky could do to support the growing life sciences industry.

“We know our legislators also recognize the importance of growing high-tech jobs and companies here in Kentucky, and we appreciate their support in making it happen with this critical investment,” said West.

An analysis by Northern Kentucky Tri-ED said employment in life sciences companies in Northern Kentucky grew more than 82 percent from 2014 to 2019, with most of the growth in Covington.

Besides the city of Covington, the lab project in front of the legislature has the backing of Northern Kentucky University and four nationally renowned biotech firms in the city.

They are Bexion Pharmaceuticals, which is working on a cancer drug; Gravity Diagnostics, which has gained national attention for its work during the coronavirus pandemic; CTI Clinical Trial and Consulting Services, which specializes in rare diseases, cell and gene therapies; and BiOWish Technologies, which develops commercial projects in agriculture and environmental markets.

Supporters of the project view it as a catalyst for private and local support for research and development space needed by companies working in life sciences, such as cell biology, genetics, molecular biology, botany, ecology, and physiology.

The lab is expected to include about 10,000 square feet of space, likely enough to accommodate about 15 startup companies. It would be built on land contributed by the city. Covington’s Motor Vehicle Parking Authority would provide and manage parking needed for the lab.

A non-profit corporation would be set up to oversee the lab’s construction and operations with a board to represent life sciences experts and public partners. The board would hire an outside entity to manage the facility.

The $10 million does not include the cost of land acquisition, parking or operations. Once stabilized, operations would be funded by rent, foundational support and contributions from local companies. After the lab opens, the partnership would leverage state and local incentives to encourage startup companies to remain and grow in Kentucky.

Concerning any issue of politics that could derail the project, Wheatley said, “I really think we can get over politics and make this a reality.”

Wheatley said he has talked to several Republican senators about the project “and I see a strong interest in it.”

The Kentucky House did not include the proposed lab in its budget plan. The Kentucky Senate is now working on its budget proposal.

Sen. Chris McDaniel, R-Latonia, is chairman of the Senate Appropriations and Revenue Committee. He is the Senate’s lead on its budget plan.

Asked if the Covington lab will be in the Senate budget, McDaniel said through an aide that he had received a letter about the lab from Covington Mayor Joe Meyer but he would like to withhold any comments about it until he has had more time to review it and the budget.

Parts of Senate Majority Leader Damon Thayer’s 17th Senate District is in Kenton County. He is a Republican from Georgetown.

Asked his opinion of the Covington lab proposal, Thayer said, “I don’t know enough about that subject to give you a quote.”

Asked if the proposal is dead because Beshear had it in his budget proposal, Thayer said without elaboration, “Not necessarily.”

McDaniel has said the Senate may not finish its budget plan until March.

After the Senate has approved its plan, the budget legislation will go back to the House, which is not expected to accept the budget plan.

Jack Brammer

Then, the two chambers will appoint members to a so-called free conference committee, which will try to iron out differences between the two chambers.  It will have the freedom to make any additions or subtractions.

Once both chambers agree on a budget, it will go to the governor, who has the power to make line-item vetoes on it but cannot make any additions.

The House and Senate, controlled by Republicans, can easily override any vetoes by the governor.

The legislature must end by April 15.

“We may not know until the final days of the legislature what’s going to happen to the Covington lab,” said Rep. Wheatley.


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