Fort Mitchell's long-vacant Drawbridge Inn site is one step closer to becoming a mixed-use destination after the city council approved a bond financing agreement on July 24, clearing the way for construction to begin on the 26-acre Buttermilk Pike property.

The council voted during a special meeting to enter an interlocal agreement with the Kentucky Bond Development Corporation, a nonprofit conduit issuer established by the Kentucky League of Cities. The deal caps bond issuance at $250 million for the Fort Mitchell Gateway project, which will include The Ormsby, a 203-unit luxury senior living community and 48-bed health center; two St. Elizabeth medical office buildings; and restaurant and retail space.

The bonds are tax-exempt municipal debt repaid by project revenues, not by city taxpayers. Mayor Greg Pohlgeers said Fort Mitchell will serve as the bond's originator but will bear no financial liability, LINK nky reported.

City Administrator Edwin King told LINK nky the agreement will streamline the process for developers and reduce the city's administrative burden. King said the special meeting was called because Fort Mitchell does not want to delay the project.

The site has sat vacant over a decade.

Steven Pickarski, financial services manager at the Kentucky League of Cities, told LINK nky the $250 million figure is a cap, not a guaranteed total. The final issuance may come in lower but cannot exceed that limit.

"It's much like the cities open the door, and the borrowers then have this new access channel to reduce the rates down from a commercial rate to an exempt rate, which is slightly less, which makes the project, in terms of financial capacities, more tolerable," Pickarski said.

The Kenton County Planning Commission approved the Gateway project in August 2024. Developer Brandicorp, led by Mike Brandy, is overseeing the site, while The Greenbrier Group is developing The Ormsby senior living component.

Across Kentucky, 44 bond issuances through the Kentucky Bond Development Corporation have totaled roughly $2.6 billion, according to Pickarski.

Fort Mitchell's next city council meeting is August 17, at 6:30 p.m. at the Fort Mitchell City Building, 2355 Dixie Highway. The meeting is open to the public.