SparkHaus, NKY’s new entrepreneurship hub, lands critical funding from key partners

Kenton County’s partnership with the Northern Kentucky Port Authority and Blue North to create a new entrepreneurship hub in Covington continues to gain momentum with key pieces of the project’s financing coming into place.

SparkHaus, which officials announced in January, will unite Northern Kentucky’s high-growth entrepreneurs with the support system and capital they need, creating a community-centric space where the region’s next community-changing company can ignite.

“SparkHaus fills a gap in our game plan to diversify our economy with new, innovative businesses,” Kenton County Judge/Executive Kris Knochelmann said. “Whether it’s our partners in the General Assembly or local business leaders, we’re grateful they share our vision for what this space can be and recognize the power of putting together all the pieces of the puzzle to give our entrepreneurs the greatest chance of success.”

Key donations from community partners in recent months have bolstered the project’s progress as officials aim to begin construction this fall.

That includes the Carol Ann & Ralph V. Haile Jr. Foundation pledging $500,000 to support SparkHaus. The Haile Foundation is one of Greater Cincinnati’s most recognized and impactful independent family foundations.

“One of the Haile Foundation’s primary objectives is to work collaboratively with government officials, business executives and other philanthropic leaders to strategize on how best to strengthen our urban neighborhoods, build a vital workforce and encourage entrepreneurship and innovation,” Bernie McKay, President and CEO of the Haile Foundation, said. “SparkHaus is an excellent example of what can happen when we come together to drive change and help our region reach its full potential.”

The Drees Homes Foundation also contributed a $250,000 gift. Based in Fort Mitchell, Drees Homes ranks as one of the 10 largest private companies in Greater Cincinnati.

“Locally owned businesses are the fabric of our community,” Barbara Drees Jones, president of the Drees Homes Foundation, said. “We believe the hub will spark new ventures that contribute to the underpinning of a thriving local economy. In the spirit of our late founder and entrepreneur, Ralph Drees, we are proud to be a part of this project.”

Other donors to the project include Fischer Homes and John Cain.

These funds build on the $6 million the General Assembly committed to the project in its most recent budget, as well as the $3 million the Port Authority deployed from Kenton County’s state-backed site development fund in 2023.

And in late-June, the Kentucky Heritage Council approved up to $2.04 million in Kentucky Historic Rehabilitation Tax Credits to convert the historic Montgomery Ward department store located at 727 Madison Avenue in downtown Covington into SparkHaus.

The project will include creating flexible office spaces, shared meeting rooms and more across three floors, as well as a ground-level cafe accessible to members of the public. The design and construction for the project is being spearheaded by Urban Sites.

Separately, the Catalytic Fund will finance an additional $2.5 million for the project’s construction.

“The Catalytic Fund is making a major investment in SparkHaus because this project exactly meets all our funding objectives: creating jobs, restoring vacant properties to productive uses, preserving historic structures and supporting the local businesses surrounding the property,” Catalytic Fund President and CEO Jeanne Schroer said. “This is a complex project made possible by an excellent public private partnership, and we are very pleased and honored to be part of this exceptional development team.”

In total, SparkHaus is anticipated to cost $16.4 million. The project’s partners continue to seek support to cover any remaining financing gaps.

In April 2024, BE NKY Growth Partnership, the region’s economic development organization, released a report identifying critical needs to build a more competitive economy against our national peers. The report showed Northern Kentucky underperforms in terms of leveraging its entrepreneurial community to build and retain wealth, as well as attract capital.

SparkHaus aims to directly tackle this challenge by creating a front door to entrepreneurship, bringing together three pillars of a strong entrepreneurial ecosystem – founders, funders and support organizations. By uniting these groups in one location, Northern Kentucky can connect their collective capabilities to fuel the creation and growth of new businesses.

SparkHaus, alongside Covington Life Science Partners’ new life sciences lab within the OneNKY Center, will help cement the city’s emergence as a major innovation district within Greater Cincinnati.

“Our mission is to eliminate the barriers entrepreneurs face daily to growing their businesses,” Dave Knox, executive director of Blue North, said. “A startup does not need 10,000 square feet of office space and a 10-year lease. Instead, they need the ability to scale, with lease terms that grow with them and access to the venture capitalists and support organizations who can give them the tools they need to succeed.”

He continued: “With SparkHaus, we’re able to provide our entrepreneurs that flexibility, while building a deep bench of Northern Kentucky companies to create the jobs and economic prosperity we need for generations to come.”

Kenton County Government

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