Florence City Council August 18

Special Meeting preceded by Public Hearing. Video.

3. Roll Call

Call to order by Mayor Julie M. Aubuchon; Councilmember Patricia Wingo was not present.  All remaining council members present. Quorum established.

4. Approval of Minutes

Minutes of the Business Meeting – July 28, 2026, approved.
Council was not in session August 4 for a lightly attended City Night Out.
Council was not in session August 11 due to failure to reach quorum. 

5. Second Reading – Ordinance O-19-2026

An Ordinance Adopting and Approving a Concept Development Plan in an Office Two/Planned Development/Parkway Corridor Study (O-2/PD/PO) District for an approximate 2.174-acre site at 7627 Ewing Boulevard, Florence, to allow a fenced-in playground for children with special needs to be located within the front yard of Already Autism Health/Commonwealth ABA. Normally, in Florence, per Ordinance 3655 (Fences) of Boone County Zoning Regulations, fences in residential districts (and the GR-8 district) are limited to a maximum height of six (6) feet and are to be located within side or rear yards. Discussed previously at the July 21, 2026, Caucus Meeting; Boone County Planning Commission recommended approval (11-1) with conditions limiting use to the current tenant’s playground, restricting structures inside the fence, and requiring removal upon vacancy.
Motion passed 5-0.

6. Second Reading – Ordinance O-20-2026

An Ordinance Adopting and Approving a Change of Concept Development Plan in a Commercial Two/Planned Development/Parkway Corridor Study (C-2/PD/PO) District for an approximate 1.7-acre area located along the east side of I-71/75, between Tanners Gate Lane and Tanners Lane (approximately 150 feet south of Tanners Lane, immediately west of 7900 Tanners Gate Lane; PIDN 061.00-00-124.07), to allow development of a parking area for 21 box trucks, 21 semi-tractors, and 50 passenger vehicles (Mackenzie and Paige Logistics, LLC).

Prior discussion at July 21, 2026, Caucus Meeting; Planning Commission recommended approval with conditions prohibiting parking/storage of semi-trailers, trailers, or freight containers; prohibiting loading/unloading on the site; and limiting the use as accessory to the existing operations at 7900 Tanners Gate Lane. Motion passed 5-0.

7. Municipal Order MO-17-2026

A Municipal Order authorizing Mayor Julie M. Aubuchon, on behalf of the City of Florence, to enter into a certain Lease Agreement by and between the City of Florence and the City of Florence Public Properties Corporation (as Landlord) and the County of Boone, Kentucky (a political subdivision of the Commonwealth of Kentucky). Passed 5-0.

8. Discussion & Possible Action – Municipal Order MO-18-2026

A Municipal Order authorizing the sale of personal property deemed to be surplus, outdated, or otherwise of no use to the city.

9. Discussion: Joshua J. Hunt, Director of Administration/City Administrator
Discussion of Athena Industrial Revenue Bonds

Joshua J. Hunt, City Administrator, introduced the item and facilitated discussion on the proposed Athena Hospitality Group mixed-use development and associated Industrial Revenue Bond (IRB) financing. A representative from Athena Hospitality Group then presented the project details and introduced Jayesh (Jay) Patel, Athena Hospitality Group CEO.

Project Overview Presented

Athena Hospitality Group proposes a mixed-use development on approximately 14.6 acres at 4700 Houston Road in Florence. The site is located near Cincinnati/Northern Kentucky International Airport (CVG), backs up to Interstate 71/75, and sits across Donaldson Highway from Turfway Park. The total project value is estimated at approximately $100 million. Athena plans to relocate its corporate headquarters to the site as part of the development.

The development is structured around four primary components: two 7-story hotels, office/HQ for Athena Hospitality Group, and a restaurant building.

Financing – IRB (Industrial Revenue Bonds) and PILOT (Payment in Lieu of Taxes) Agreement. The presentation focused on the use of IRBs under Kentucky law (KRS Chapter 103) to support the project. Key elements: The City of Florence would act as the issuer of the bonds.

A common “lease-back” or “phantom bond” structure would be used. Under this approach, the city temporarily takes title to the project property. Because the property is treated as publicly owned for a public purpose during the bond term, it receives a property tax exemption.

The bonds themselves are repaid solely from the project’s revenues or lease payments made by Athena. The city has no direct financial liability and does not pledge its own credit or tax revenues to repay the bonds.

A central part of the discussion involved the PILOT agreement. Because the IRB structure removes the property from the regular ad valorem tax rolls during the bond term, the developer and the city negotiate a separate contractual payment (the PILOT) that Athena would make instead of normal property taxes.

Typical features of a PILOT agreement: (1) Athena would make annual (or periodic) payments to the City of Florence in place of the property taxes that would otherwise be due. (2) The amount of the PILOT is negotiated and is often set lower than the full tax amount that would apply without the IRB, creating the financial incentive for the developer. (3) PILOT payments can be structured to increase over time or to phase up toward full tax levels. (4) The agreement usually has a defined term that matches or is shorter than the bond term. (5) Once the IRB term ends and title returns to the private owner, the property goes back on the regular tax rolls at full assessed value and the PILOT ends.

PILOT payments typically go to the city and sometimes are shared with other taxing jurisdictions such as the county or school district, depending on how the agreement is written.

PILOT gives the developer a temporary reduction in tax burden while still providing the city with some revenue stream during the incentive period rather than a complete tax holiday.

The item remained for discussion only. No formal action, ordinance, or resolution approving the IRBs or a PILOT agreement was taken.

10. Public Hearing Discussion: Jason Lewis, Finance Director

2026 Tax Rates on Real and Personal Property

Following the required public hearing held at 5:30 p.m., Jason Lewis presented proposed 2026 property tax rates:

• Real Property: $0.187 per $100 of assessed valuation (projected revenue ≈ $7,042,102) 
• Personal Property: $0.226 per $100 of assessed valuation (projected revenue ≈ $1,900,791) 
• Compensating real property rate: $0.173 per $100 (projected revenue ≈ $6,514,886)

City statements indicated approval of the proposed rates (along with any related special assessment adjustments) would result in a combined property tax rate lower than the overall rate paid in 2025.

Individual Council Members’ Comments on Tax Rates

Councilmember Lesley Chambers provided a tax example during the discussion to illustrate the practical impact of the proposed rates on property owners.

Mayor Julie Aubuchon commented on the use of individual homes as examples when explaining the effects of the proposed rates and assessment changes.

Councilmember Diane Whalen noted that while tax rates are going down, actual tax bills for many property owners can still go up. This occurs when property assessments rise enough to offset the lower rate, resulting in a higher overall tax obligation despite the rate reduction.

It was specifically mentioned that the Property Tax Assessments and Rates were only reviewed on the east side (65%) of the city and not the West Side. 

11. Closed Session

Closed session held as needed (topics typically include pending litigation, real property acquisition/disposition, or personnel matters under Kentucky open meetings law).

12. Adjournment

Motion to adjourn the special meeting.