By ALICIA FEYERHERM
Tiger Media Network
The Hays City Commission adopted two resolutions evidencing an intent to issue Industrial Revenue Bonds during Thursday’s meeting.
The first project, Willow Grove, would involve construction of 48 affordable housing units and a clubhouse located at 400 W. 48th, near Carico Implement.
Like the affordable housing complex discussed during the April 23 meeting, this developer is also seeking Low-Income Housing Tax Credits (LIHTCs) awarded by the Kansas Housing Resources Corp. By securing an intent to issue Industrial Revenue Bonds from the city for a sales tax exemption on qualified materials, it improves the developer’s LIHTC application score by 10 points.
“We have talked about how critical those 10 points can be,” Assistant City Manager Jarrod Kuckelman said. “It often comes down to just one or two points or just a few points that decide whether a project gets awarded or not.”
If the project were awarded the tax credits, a portion of the units would be income-qualified.
The developer is requesting IRBs for sales tax exemptions for qualifying materials. The estimated project cost is approximately $9.3 million. The estimated benefit is valued at $154,000.
The second project, Wheatland Commons, requested an IRB sales tax exemption as well for its 36-unit complex with a clubhouse to be located on East 22nd near Bright Minds Academy. The developers are also applying for LIHTCs. The project costs are estimated at $12.51 million. The estimated benefit of the sales tax exemption is valued at $211,050.
Kuckelman said the projects will likely not move forward if they are not awarded LIHTCs. If the projects do not advance, they will not end up needing the IRB sales tax exemption.
“This is one thing that constituents have been asking for in this community for a very long time, and I’m excited at the proposition of it actually happening,” Commissioner Sandy Jacobs said.
The commission unanimously approved both resolutions.
Other items from the meeting included:
- A presentation from Women Who Lead on the Sunrise Park improvements.
- Approving authorization for the city manager to enter into an agreement with Driggs Design Group, PA in the amount of $94,400 for engineering services related to the design of several road reconstruction projects.
The next city commission meeting will be at 4 p.m. May 28 at City Hall.
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