A key project that will revitalize a historic building along Madison Avenue in downtown Covington received a multimillion-dollar windfall from the state. Organizers behind the effort said the funds will kick-start development with a targeted completion date set for next year.
SparkHaus, a conversion of the now-vacant Sims Furniture building, received $6 million in state funding to support its build out. The estimated $15 million project, first announced in spring 2023, aims to bring together entrepreneurs, founders, investors and support organizations under one roof.
The monies were part of Kentucky House Bill 1, legislation using the commonwealth’s budget reserves for one-time investments in infrastructure, economic development and more. With the funding secured, construction is slated to begin this fall.
SparkHaus is anticipated to open in summer 2025.
“Northern Kentucky is critical to the vitality of the Commonwealth,” Sen. Chris McDaniel, R-Ryland Heights, said in a news release. “We have to attract, develop and retain entrepreneurs to grow our economy, and SparkHaus will play a major role in doing just that.”
Kenton County is partnering with Blue North, a Northern Kentucky-focused entrepreneurship support group, and the Northern Kentucky Port Authority to transform the former Sims Furniture building, located at 727 Madison Ave., into the SparkHaus.
The furniture store has sat vacant since April 2022, and last year, the Kenton County Fiscal Court approved using a pool of site development funds – an amount not to exceed $3 million – to purchase the property through the port.
The vision behind SparkHaus is to create a community asset where Northern Kentucky entrepreneurs can access the tools they need to grow their businesses. It's an amenity currently lacking on this side of the Ohio River, officials believe. Dave Knox, CEO of Blue North, said the launch of SparkHaus would cement Covington's role as one of three innovation districts in the region – the others being Over-the-Rhine and Uptown in Cincinnati.
Blue North, along with EGateway Capital, a Covington-based venture capital firm, have previously been pegged as future tenants in building. No leases have been signed.
“Entrepreneurs attract other entrepreneurs and the entire community is at its best when collisions and collaboration are taking place,” Knox said. “SparkHaus will serve as a cornerstone of our entrepreneurial community.”
Over-the-Rhine-based Urban Sites is serving as the project’s developer and construction team. SparkHaus will cost an estimated $15 million to complete, and Kenton County and partners are raising private dollars to supplement the build out.
Kenton County Judge/Executive Kris Knochelmann in the release praised McDaniel for his work and highlighted the impact SparkHaus will have on the entire region.
“From day one, Sen. McDaniel stood by us and gave this project his full support, and that has been a difference-maker in taking this from vision to reality,” Knochelmann said. “SparkHaus co-locates critical pieces of the entrepreneurship formula, so our next generation of business leaders can focus on growing their companies right here in Northern Kentucky.”
As part of HB1, Kenton County also received $125 million – $10 million in fiscal year 2025 and $115 million in fiscal year 2026 – for the Commonwealth Center for Biomedical Excellence, which will be built at the former IRS site, now known as the Covington Central Riverfront. The facility would house Northern Kentucky University’s Chase College of Law and University of Kentucky’s College of Medicine Northern Kentucky Campus. Each are relocating from their existing facilities in Highland Heights.
