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COVER STORY - July 2002 by Claude Hammond
But that’s not true now. The economic growth in Northern Kentucky actually outpaced the Queen City during the decade of the 90’s. According to Gary Toebben, President of the Northern Kentucky Chamber of Commerce, there’s a reason for this. He should know. Not only does Toebben lead the Northern Kentucky Chamber, but he’s chair-elect of the American Association of Chamber Executives. His unique position gives him an overview possessed by few business development professionals. “A combination of factors have led to this area’s success. One has been the growth of the Cincinnati-Northern Kentucky International Airport, which now handles more than 20 million passengers annually. Once we get past the effects of September 11, that figure will increase even more.”
Any economic development professional knows that location, while important to business, doesn’t guarantee success. Toebben says another factor Northern Kentucky leaders have addressed includes the development of an attitude of cooperation among local governments and businesses. “The third big factor in why Northern Kentucky is a good place for business is the spirit of community cooperation among the three counties and 39 cities,” Toebben said. “The Northern Kentucky Chamber has served as a role model. The current organization was created in 1969 as the result of mergers of the Campbell County and Kenton-Boone County chambers. A logo we use in Northern Kentucky refers to the ‘Power of Partnership.’ That’s something we do more than just talk about. We live that logo and businesses benefit.”
The Chamber of Commerce executive said that the regional approach has spawned some revolutionary initiatives to encourage local business. Northern Kentucky has a three county economic development organization (Tri-ED), a three county convention and visitors bureau and a three county vision under the stewardship of a group called Forward Quest. The Chamber championed the creation of all three organizations. The result has been a massive number of new businesses and new jobs, especially in fast growing Boone County. The Chamber’s lobbying expertise came into play when legislation was passed in 1994 to allow the three counties to collect a 3 percent rental car fee for economic development and in 1996 when the legislature assisted in the funding of the Northern Kentucky Convention Center in Covington.
The importance of the Cincinnati-Northern Kentucky Airport in the region’s economic boom cannot be underestimated, Toebben said. “Approximately 15,000 people work at the airport,” he stated. “It has a $4 billion economic impact on the tri-state region of Kentucky, Ohio and Indiana.” “The airport was founded in 1947, but its selection as a Delta hub during the 1980s has been the most significant factor in its growth. The airport board has been very visionary over the years in its expansion plans. A new runway was recently approved by the Federal Aviation Authority and has a 2005 projected completion date.” Being chair-elect of the American Association of Chamber Executives, Toebben is an advocate of strong business leadership in community development. It’s a subject about which he is passionate. “A strong Chamber of Commerce is essential for a growing community,” he said. “A good chamber brings business and elected leaders together to accomplish in tandem what no individual business or governmental unit could do on its own. When you look at the cities that have a robust economy and a vision for the future, you will typically find a strong chamber of commerce.” Practicing what it preaches, the Northern Kentucky Chamber of Commerce, Northern Kentucky Tri-ED, Northern Kentucky University and the Madison E-Zone in Covington, one of Kentucky’s new innovation commercialization centers, have assembled a plan for the region’s participation in the New Economy. One of the priorities of the groups is to establish a cluster of pharmaceutical companies in the area. The chamber and its partners are working with Union Springs LLC, headed by entrepreneur Roger Griggs. “Roger has been very successful in the pharmaceutical industry and in securing funding from venture capitalists,” Toebben said. “He has a strong record of purchasing small companies, growing them and creating value for the companies’ stockholders. Roger will help us identify companies that can be grown right here in Kentucky. A collaborative relationship with the schools of pharmacy at UK and U of L is part of this plan.”
“We’re excited about education here,” he said. “Northern Kentucky University is a partner with our high-tech incubator, the Madison E-Zone and they have big plans for encouraging technology companies to locate near the NKU campus. NKU’s expanded curriculum in information technology and in math and science has caught the attention of local businesses. NKU president Dr. Jim Votruba is doing a great job of listening to his customers and designing curriculum that meets the needs of the 21st century workplace. “Northern Kentucky is also looking forward to the improved educational offerings from the new community and technical college in Northern Kentucky. We were the last region in the state to secure a community and technical college and our new president, Dr. Ed Hughes, is anxious to take advantage of the support he is receiving. “Northern Kentucky also has some of the best public schools in the state. We have one school district, Walton-Verona, that hasn’t had a dropout in four years. Few school districts, anywhere in the nation can match that record.” Talking about public education turned Toebben’s attention to the State Legislature. According to Toebben, the spring legislative session only had mediocre results, as far as Northern Kentucky is concerned. “I would give the session a grade of ‘C,’” he said. The Northern Kentucky Chamber of Commerce issued a Legislative Report Card last month, summarizing the session. The report praised the defeat of House bills 104 and 348, which in their original form, would have created sharp increases in Worker’s Compensation premiums. Also praised was the defeat of House Bills 825, 461 and 865, which contained business tax increases. The defeat of attempts to add the language of those three bills into the budget during the special session was also noted. Both Toebben and the Chamber he leads criticized the failure of the legislature to enact a budget. “Every educational institution in the Commonwealth has been in a state of limbo as a result of this inaction by the legislature. Local schools were handing out pink slips to cover their bases while universities were realigning their priorities as a result of the possible loss of “Bucks for Brains.” Toebben also noted that within the budget passed by the House was language that would have allowed tax incentives for the completion of the Newport on the Levee project. Without a budget, this tax incentive is not available. Gridlock may be acceptable on some issues, but the state’s budget is not one of them,” Toebben noted. The Chamber report also criticized the legislature and the governor for not extending the state’s enterprise zone program and for the failure to pass legislation needed by the Kentucky Community and Technical College System. As far as future priorities to help Northern Kentucky continue its robust economic growth, Toebben says that there are five projects he’d like to see addressed in the near future.
“I-75 is a warehouse on wheels. It’s the most heavily utilized truck interstate in the United States and the Brent Spence Bridge is one of its major components. The Kentucky Department of Transportation is now spending $2.1 million to study the options available. If the bridge is replaced at its current location, the cost is estimated to be somewhere between $300 million and $400 million. It will be expensive, but this aging bridge must be addressed.” “Also a priority for our region is the construction of a special events center at NKU,” he said. “NKU does not have a facility on its campus large enough to hold its own graduation. They hold graduation in Cincinnati. Of the state universities, NKU is the only one without a multipurpose arena.” “Another significant project at NKU would be the development of a technology corridor to provide business space adjacent to campus for technology-related companies. University and community leaders are promoting this initiative,” Toebben stated. “So much is happening along the Ohio River, Toebben said, “but one project still needs a jump start. It is the Covington West redevelopment, which would be west of the existing Covington riverfront development that houses such business giants as Ashland Inc. and Corporex. This project is an exciting proposal that would continue to spark business development in Northern Kentucky’s largest city. A final project on Toebben’s list would be the construction of a larger interpretive museum at Big Bone Lick State Park in rural Boone County, where the bones of thousands of Ice Age animals have been discovered. Looking at the Commonwealth as a whole, Toebben noted that one economic stimulus that could make a difference, not just in Northern Kentucky, but throughout the state, would be expanded gaming at horse tracks. Toebben said. “In Northern Kentucky we see the dollars crossing the state line into Indiana every day. Almost literally, there’s a huge sucking sound of money being pulled away from Kentucky businesses. Turfway Park in Florence has seen a dramatic downturn in its business. To allow expanded gaming would be a ‘win-win-win’ situation. It would be a win for our Thoroughbred industry, a win for our state’s coffers and a win for economic development in Kentucky.” “Before we took our stand on expanded gaming at horseracing tracks, we called representatives of communities in Indiana with expanded gaming. The negatives people often attribute to gaming – about it ruining communities and so on – simply have not materialized in Indiana,” Toebben stated. In the future, Toebben says that more unified government would be desirable for Northern Kentucky. “The population in Boone, Kenton and Campbell Counties is 326,000, according to the 2000 Census. That makes us the second-most populated area in Kentucky,” he said. “We would certainly get more attention from the rest of the Commonwealth and the nation if we had a unified government. “The potential
of Northern Kentucky, as a place to live and work, is outstanding,”
Toebben added. “This is a great time for this region. We have a
lot of opportunities.” Claude Hammond is editorial
director of The Lane Report. |
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Copyright 1996-2002, by Kentucky Business Online. All rights reserved. Editorial content
is copyright 2002, Lane Communications Group The Lane Report is a trademark of Lane Communications Group. All other trademarks are the property of their respective owners. |
In
terms of economic development along the Ohio River, Cincinnati is accustomed
to being a centerpiece. In past years, the various municipal and county
governments on the Kentucky side of the river served as bedroom communities
for that city. 
“The
second major factor in this region’s growth is the development
of businesses along the I-75 corridor, in particular, businesses related
to the automotive industry. When Toyota located in Georgetown more than
a decade ago, it moved the automobile industry one state further south.
The Interstate Highway System has helped us create a location that is
very healthy for business.”
“This
took foresight. There are many regions around the country where the
counties and cities don’t work with one another either at home
or when lobbying in Washington DC or at their state capitol. During
the 2002 legislative session, we had more than 700 people from our area
travel to Frankfort for our “Northern Kentucky Night,” which
the governor and most legislators attended. That event drew more than
1,100 people.”
Another
good example of successful cooperation among business and government
is the Southbank Partners, which includes the Ohio River cities of Covington,
Newport, Bellevue, Ludlow, Dayton and Fort Thomas. Newport on the Levee
and the recently announced Hofbräuhaus in Newport were both aided
by this cooperative effort. 
Absolutely
crucial for business development in any community, Toebben said, is
high caliber educational institutions. 
“A
major challenge on the horizon is the age and capacity of the Brent
Spence Bridge that handles all the traffic from I-71 and I-75. The 40-year
old bridge was designed to handle less than 100,000 cars a day. Today,
that total is 135,000 vehicles per day and growing.”