MERGER KEEPS AND CREATES JOBS FOR COVINGTON

by Michael Monks 

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City Manager Larry Klein shakes hands with
Plaza President Jim Kelleher

In a giant boost to Covington's job news and an ambitious reuse of old retail space, Plaza Recovery Inc announced Tuesday a merger with another debt collection service, Latonia-based ACB American, and the promise of two-hundred fifty new jobs. Lieutenant Governor Jerry Abramson joined Mayor Chuck Scheper and City Manager Larry Klein inside the old Johnny's Toys and Frank's Nursery which is now home to several rows of cubicles for 110 employees in an impressively repurposed facility. "Today's announcement is a sign that the economy is improving," Abramson said, adding that in the past three months the administration of Governor Steve Beshear has made similar announcements in Lebanon (250 jobs), Paducah (300 jobs), and Louisville (950 jobs). "There is an energy in this community for economic growth." 

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“We welcome Plaza Recovery and the 250 new jobs coming to Northern Kentucky,” Gov. Beshear said in a release. “We’re proud to become the new home for this growing company as it means a victory for the people of the Commonwealth not only today, but also for years to come.” 
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The news is particularly welcome in Covington, a city still wracked with anxiety over the loss of two of its largest employers late last year. "We were impressed with the work ethic and the individual personalities and the welcoming attitude of the community," said Jim Kelleher, President of Plaza. "Our goal is to help people provide for their families this year, then better next year, and better the year after that."
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Lt. Gov. Jerry Abramson

Mayor Scheper also cast an optimistic tone, noting that the city is working toward balancing its budget without the payroll tax revenue from Omnicare and Nielsen and that this additional revenue from Plaza will feel more like a bonus. Scheper also thanked former Mayor Butch Callery for his role in retaining ACB in Covington during his tenure a few years ago. "They were down at 8th & Scott in a cramped space without a lot of parking and they were going to move to Fort Thomas," Callery said. "I checked with the finance director and asked how much we get from them in payroll taxes and he told me, '$68,000', so I said, 'man, we got to talk to these people'." Just when it looked like ACB's departure for Fort Thomas was imminent, a phone call was made to the manager of the Latonia Shopping Center to inquire about available space and a deal was reached keeping ACB in Covington where it was founded in 1962.
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Offices at Plaza Recovery, Inc

"What is so awesome is it demonstrates what can be done with an old strip mall, repurposing an old space alternatively," said Rebecca Volpe of the community development department at City Hall. "Where we should be focusing energy is reinforcing Covington entrepreneurs and working with them to expand because they have been loyal. (ACB) was a company in a tiny building on Scott and now they're in forty-three thousand square feet." 
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A press release from the Governor's office describes the incentives package that Plaza received:  The Kentucky Economic Development Finance Authority preliminarily approved the company, which at the time went under the name AID Associates, for tax incentives up to $1.2 million through the Kentucky Business Investment program. 
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(Covington's payroll tax is 2.5% but for Plaza, 1% will be returned on each new job created.)
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Covington's delegation in Frankfort also weighed in via press release:

“This investment speaks to the commitment of this company to Covington and the work ethic of our people,” Sen. Jack Westwood, of Erlanger said. “I am pleased to hear the company could surpass the original estimate of 150 new jobs.”

“As our economy continues to improve, it is my hope that we will see renewed job growth in Northern Kentucky and the Commonwealth,” said Rep. Tom Kerr, of Taylor Mill. “I’m pleased that Plaza Recovery is making this investment and creating jobs in our region.”

“I want to thank Plaza Recovery for investing in our community and providing this much-needed economic boost to our region,” said Rep. Arnold Simpson, of Covington. “This decision will make a true difference in the lives of dozens of families, which is always great news. I’m proud the state could play a role in making this possible.”

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