Hello! Not sure what you want to say. If you are saying Kate had a good idea to Kate you should say: "Kate, that's a good idea!" Or "What a good idea, Kate!"
If you are talking to someone else about Kate's idea you can say: "Kate had a good idea" or "That's Kate's good idea".
You can't say "That's a good Kate's idea" for the following reasons:
First, "Kate" is in the middle of your sentence so we don't know her role in the action. The expression "That's a good idea" has a subject (That), verb ('s=is) and an object (a good idea). But what about Kate?
In your original sentence you have put "Kate+'s+idea". indicating that Kate is part of the object of the sentence. But "good" and "idea" have to be together because they are an adjective and a noun that interact with each other: it's not Kate that's good, but her idea.
To express the sentence correctly you should write: subject, verb, person, complement. That (subject) 's/is (verb) Kate's (person) good idea (complement). You can also write a different sentence with this order: subject, verb, complement, person. That (subject) 's/is (verb) a good idea (complement), Kate (person).
So you can write the sentence in two ways: That's a good idea, Kate! (if you are talking to Kate) and "That's Kate's good idea" (talking to someone else).
Hope to helps!