By ALICIA FEYERHERM
Tiger Media Network
The Hays City Commission adopted a resolution evidencing an intent to issue Industrial Revenue Bonds (IRBs) for the Pioneer Run project on Thursday.
The Overland Property group is planning to construct 48 affordable housing units and a clubhouse on the site west of the Hilton Garden Inn.
The developer is requesting IRBs for sales tax exemptions for qualifying materials. The estimated benefit is valued at $147,962.50.
The developer is applying for the Low Income Housing Tax Credit (LIHTC) awarded by the Kansas Housing Resources Corp. (KHRC). Ten additional points are awarded to applications with IRB sales tax exemptions.
“If the property does not receive a LIHTC later on this summer, they probably won’t move forward with the project and therefore won’t end up actually needing the IRB,” said Assistant City Manager Jarrod Kuckelman.
Commissioner Sandy Jacobs said it is difficult to make low-income housing financially feasible without LIHTC assistance. Three other developers are exploring low-income housing projects.
“We’ve been telling our story very well of what we need in terms of that kind of housing,” Jacobs said. “They’re listening. They know what the opportunity is and it is much appreciated.
Mayor Mason Ruder said the developer has been in the area for 17 years and is excited for the project.
“They (the properties) look great. They’re run well, and they provide an affordable place to live,” he said.
The commission approved the resolution 5-0.
The next city commission meeting will be at 4 p.m. May 14 at City Hall.