Construction underway on SparkHaus, a one-stop shop for entrepreneurs in Covington

Kenton County, the Northern Kentucky Port Authority, Blue North and community members celebrated the groundbreaking for SparkHaus on Monday.

SparkHaus will be a one-stop shop for entrepreneurs, combining the three pillars of a strong entrepreneurship ecosystem – founders, funders and supporting organizations.

This will enable entrepreneurs to benefit from an office where their physical space needs can be flexibly met, as well as a network of founders and venture capitalists whose experience and financial resources can fuel growth.

Once completed, the facility is expected to be used by 200 to 300 people daily.

“Today is another example of the power of collaboration,” Kenton County Judge/Executive Kris Knochelmann. “We know that entrepreneurs in our region need more support to thrive, and thanks to our partners, including our General Assembly and the business leaders who helped financially support SparkHaus, we are creating a space where our next community-changing company can emerge.”

“We are excited to announce that construction on SparkHaus is beginning, and the momentum for innovation and entrepreneurship in Covington continues to grow,” said Christine Russell, executive director of the Port of NKY and vice president of strategy for the BE NKY Growth Partnership. “We are grateful to the General Assembly and Governor Beshear for providing funding last session, which was critical to begin construction.”

Blue North, a Northern Kentucky innovation hub, has signed a master lease for SparkHaus, which will feature three floors and 31 dedicated office spaces for teams of two to 12 people, more than 170 individual desks and multiple shared meeting spaces.

SparkHaus is building Urban Sites with CityStudios Architecture serving as architect/designer.

“As our region’s entrepreneurial community continues to grow, SparkHaus will be a key tool in unlocking that next phase,” said Blue North CEO Dave Knox. “In less than a year, we will have a truly unique space to bring together entrepreneurs, investors, and communities, driving connections and collaboration.”

In addition to Blue North, another anchor tenant in the space will be eGateway Capital, a Covington-based private equity firm that has raised $120 million since 2021 and invested more than $60 million in 12 companies.

“More capital will bring more jobs – that’s our vision,” said Chad Summe, Managing Partner of eGateway Capital. “Sparkhaus will be a great place to attract and nurture capital along with new, emerging executives in our region. We also believe it will provide our technology companies with a great place to scale their businesses, making it easier for them to find their first job in the region.”

The total cost of SparkHaus is estimated at $16.4 million.

The General Assembly appropriated $6 million for the project in its last budget, and in 2023, the Port of NKY allocated $3 million from the state-supported Kenton County Land Development Fund.

“We want to give our residents the tools they need to create the next Northern Kentucky success story,” added Sen. Chris McDaniel (R-Ryland Heights), who led the effort to fund SparkHaus. “By investing in this initiative and providing access to an incredible mix of support services, resources and facilities, I know the talents of our people will deliver great results for our region.”

Local nonprofits, including the Carol Ann & Ralph V. Haile Jr. Foundation and the Drees Homes Foundation, provided financial support for the project. Other donors included Ried Schott, Corporex Cos., the St. Elizabeth Foundation, the Milburn Family Foundation, the Duke Energy Urban Revitalization Initiative, Fischer Homes and John Cain.

In late June, the Kentucky Heritage Council approved $2.04 million in Kentucky Historic Rehabilitation Tax Credits to redevelop the property that previously housed the historic Montgomery Ward department store in downtown Covington.

Separately, the Catalyst Fund will finance an additional $2.5 million for the project.

Knockelmann said SparkHaus and the new Covington Life Science Partners life sciences lab within the OneNKY Center will help solidify Covington as a premier innovation area within Cincinnati and the Commonwealth of Kentucky.

Kenton County Fiscal Court