Florence City Council August 25
Business Meeting. Present: Councilmembers Wingo, Chambers, Wynn, Whalen, Schneider, and Cable. Quorum present. Video
Item numbers are the same as listed in the published agenda.
5. First Reading — Ordinance O-21-2026 An ordinance relating to the 2026 levy of taxes on real estate, personal property, franchises, and financial-institution deposits, and to the special assessment for current service costs of the County Employees Retirement System hazardous-duty (police and fire) plan. Vote: 6–0. First reading approved.
A second reading is required before the ordinance takes effect. Rates stated in the reading:
- 18.710 cents per $100 of assessed value on real property
- 22.610 cents per $100 of assessed value on personal property, excluding motor vehicles and watercraft
- Additional 2.710 cents per $100 for hazardous-duty retirement current service costs
- Franchise tax of 0.025 percent on financial-institution deposits
A two (2) percent discount applies if the tax is paid in full by November 1, 2026. Taxes unpaid after January 1, 2027, are subject to a twelve (12) percent penalty plus 12 percent interest.
Councilmember Chambers noted the real estate levy represents a decrease of about eight (8) percent. Finance staff advised taxpayers to use the early-payment discount.
6. Resolution R-4-2026 A resolution authorizing execution of a Memorandum of Agreement between the City of Florence and JDV Ventures, LLC relating to the acquisition, construction, equipping, and installation of a mixed-use commercial development; agreeing to undertake issuance of industrial building revenue bonds at the appropriate time; approving an agreement in lieu of taxes; and authorizing the Mayor to execute documents in furtherance of the resolution. Vote: 6–0. Adopted.
The site is the former Vichy parcel, leftover Caesars/Turfway property, adjacent to Lowe’s and Citibank. Athena Hospitality completed approximately one year of due diligence and now holds sole ownership. The proposal presented the prior week and restated at this meeting is a new corporate headquarters, two high-end hotels, and a Class A restaurant pad. Staff described approximately $100 million in capital investment. Zoning is a separate process and was not approved by this vote. Staff stated that a Kentucky Business Investment (KBI) request is expected later.
Industrial revenue bonds
The City would act as conduit issuer under KRS Chapter 103. The bonds are non-obligatory. The City is not the borrower and does not pledge general-fund repayment. Bondholders look to project revenue. Title to improvements financed by the bonds is typically held by the public issuer for the life of the bonds. That public title removes those improvements from ordinary local ad valorem taxation by the City, the County, the school district, and other local taxing districts. The company’s leasehold is generally taxed at the reduced state rate of $0.015 per $100 of fair cash value if the Kentucky Economic Development Finance Authority approves that reduction. Capital not financed by the bonds remains fully taxable. When the bonds are retired, title returns to private ownership and ordinary local rates apply.
PILOT (payment in lieu of taxes)
A PILOT is a contract that replaces the abated local taxes. It is not a Property Valuation Administrator tax bill. It is a negotiated annual payment the company must make. Staff stated that no City check is written; the payment must be generated by the site and paid by the developer.
Councilmember Wingo asked whether payments would still be made to the school system, the City, and the County. Staff answered that payments would be made to all three, at a reduced rate. No year-by-year payment table and no adopted percentage split were read into the record.
Tax implications stated by staff
Current collections on the vacant tract were described as about $5,000 a year to the City. After build-out, even with the industrial-revenue-bond abatement, staff said the City could realize about $250,000 a year. Staff said a $100 million project would not be assessed at $100 million when complete and might be assessed in the range of $45 million.
Staff stated that the City uses this structure so incremental receipts can later be used through the general fund for residential needs, including east-side capital improvements and public safety.
School taxes and SEEK
SEEK (Support Education Excellence in Kentucky) reduces state aid as a district’s local property assessment rises. Staff stated that placing a large project on the ordinary tax roll would increase local school tax collections but would also reduce state SEEK aid. Staff stated that an industrial-revenue-bond and PILOT structure does not count against SEEK in the same way. Staff said schools would receive “55 percent of the normal revenue” and that SEEK would not be reduced by the same assessment increase. Staff concluded that Boone County Schools would see “zero impacts” in the SEEK sense and would come out “even more advantageous.” Staff said the district had been consulted and was supportive. The 55 percent figure was spoken in the meeting; it is not a statutory rate and may differ in the final PILOT.
R-4-2026 is an inducement resolution. Still required before the abatement is operative are the final bond ordinance and lease, the executed PILOT with payment formula, term, and distribution, any KEDFA action on the reduced state leasehold rate, any later KBI agreement, and separate zoning and concept-plan approval.
7. Mayor’s Report
- The Florence Aquatic Center remains open weekends through Labor Day, 11:00 a.m. to 7:00 p.m.
- A mini-golf tournament and concert will be held at World of Golf on August 29.
- Neighborhood Night Out will be held at South Fork Park on September 11.
- Arbor Day will be observed at Caniba Park on September 19.
8. Other — citizen statements
Three residents addressed Council.
Joe Berkshire — Stated the senior-center door problem had been resolved and the door now opens. Mr. Berkshire criticized Boone County Public Library governance and spending, stating he had attended a library board meeting; that accountability was lacking; that costs were high, including carpet sourced from California rather than locally; that Library Director Carrie Hermann and board chair Dr. Jackson were unresponsive in the minutes; that a 50-acre Hebron site had been questioned; and that the library had confirmed it is not planning a new Florence library and does not have funds confirmed for a new building. The speaker asked for additional handicap parking at the senior center, which is adjacent to library property, and asked staff to evaluate the cost for the budget. The speaker offered a historical remark about “Hop” Ewing and Mall Road. The speaker praised the new gazebo at Florence Senior Center and its use by the community.
Naomi Liebson, resident of Utz Drive. Asked about large plates on Girard Street. Staff confirmed that the plates relate to a City water-main project and that the intersection will be repaved.
Spencer Carter, resident of Pheasant Drive. Objected to a commercial van parked daily in front of his house. Mr. Carter said a neighbor who rents next door operates the van for business; that the sheriff had it moved once and it returned. Mr. Carter had provided photographs and handouts. Mr. Carter cited City and Boone County rules against commercial vehicles on residential streets when used to carry freight or merchandise. Mr. Carter said police had asked the neighbor to move the van and were ignored. Mr. Carter asked for ticketing or towing.
Staff response: Public Services stated the vehicle may not meet the current definition of a commercial vehicle (full-size van, no markings or racks); that fines are a last resort; and that staff will work with the Police Chief to review the facts and whether the ordinance should be amended. Contact information was requested for follow-up.
9. Closed Session No closed session was conducted
10. The meeting adjourned.
Mayoral candidate David Rose was present for the meeting. Council candidates Joe Berkshire, Shari Kilmer, and Jim Leach were present for the meeting.