A low-income housing project at 65th and Riverview failed at the Unified Government Economic Development and Finance Committee meeting Monday night.
On a vote of 2-2, with Commissioners Hal Walker and Ann Murguia voting no, the proposal will not move on to the full commission, according to UG officials. Commissioner Gayle Townsend and Norm Scott, a member of the Board of Public Utilities on the committee, voted for advancing the project.
The proposed project would have built 30 single-family low-income houses at the 12.5-acre site near 65th, not far from the Turner Diagonal and I-70 in Kansas City, Kan. The site was in the Turner school district. The project would have applied for a 9 percent tax credit.
All homes in the $8.3 million project would have had three bedrooms, two baths and two-car garages, according to the developer, Belmont Development, based in Oklahoma, and Neighborhood Housing Services of Oklahoma City. The brick homes would have had 1,840 to 1,900 square feet each. Each garage floor would have a tornado shelter. There would also be a clubhouse.
A sliding scale for rent, based on the renter’s income, would have ranged from $564 a month to $1,300 a month, according to the developer.
Residents would have entered a program to lease the homes for 15 years, then would have an option to buy them, according to the developer.
Commissioner Walker questioned whether quality homes could be built for the amount of money that was discussed. He questioned whether materials could be used at that cost that would last for 40 to 60 years. He also said he did not see this development as an improvement to the neighborhood.
The developer responded that he believes they are quality products, and he estimated the cost of construction at $141.62 per square foot.
There seemed to be some question among the committee about whether the 2-2 vote meant the motion failed and would not go on to the next level, and Joe Connor, a UG assistant administrator, said that meant it would not advance. With only four members present tonight, all four would have had to vote in favor of the project for it to advance.
U.S. Soccer National Training Center
In other action, the committee approved a resolution of intent for $83 million in industrial revenue bonds for the U.S. Soccer National Training Center development and youth tournament fields, as well as infrastructure, at 98th and Parallel Parkway. According to UG agenda information, the project may submit for a sales tax project exemption certificate from the state.
This project moved forward to the full commission, and according to UG officials, there will be a public hearing on a payment in lieu of taxes in connection with this project at a future date.
Providence Medical Center Amphitheater
The committee also approved an agreement with Bonner Springs in financing capital improvements at the Providence Medical Center Amphitheater (formerly Cricket, Verizon and Sandstone amphitheater) in Bonner Springs.
UG officials said work is almost complete on the renovations at the amphitheater, which will cost a total $865,000. Shows are expected to begin in May.
Under this agreement, the UG will finance capital improvements with debt of $750,000. Bonner Springs will pay $30,000 one time to the UG to perform capital improvements, and will pay part of the proceeds from the amusement tax generated from ticket sales at the amphitheater. Bonner Springs collects 40 cents a ticket for 2016 through 2020, and five cents more after that. Bonner Springs will keep the first $15,000 collected, and will pay whatever is above $15,000 to the UG for 2016-2025. The payments will go toward repaying the debt.
For each ticket sold beyond 51,719 in the first year of the agreement, and other numbers in other years, Bonner Springs will pay 15 cents per ticket to the UG for 2016 through 2020 and 20 cents per ticket for 2021-2025. The money will be used to repay debts or for capital costs for the facility.
Downtown Improvement District
Lynn Kuluva, chair of the Downtown Improvement District, was present with the Downtown Shareholders to speak about a resolution to set a public hearing considering the renewal of the Self-Supported Municipal Improvement District (SSMID), in the downtown Kansas City, Kan., area. There is already a SSMID, and a vote would allow it to be renewed.
The committee advanced the resolution to the full UG Commission. The proposed public hearing is at 7 p.m. May 26.
Under the SSMID, downtown area property owners vote on taxing themselves for services such as security and trash pickup. There is a cap on the tax of around 13.3 mills.
Rainbow Village Redevelopment District
The Rainbow Village Redevelopment District at 34th and Rainbow Boulevard also moved ahead on Monday night, as a resolution will go to the full UG Commission April 14 for approval to set a public hearing May 26. Lane 4 Property Group is in charge of this $15.7 million project, an 89-bed hotel with site improvements. Part of an existing shopping center would be torn down. An existing Applebee’s would remain.
A tax increment financing district has already been created for this project, according to developers.
Tax abatement policy
A discussion on UG tax abatement policy was postponed until later. Commissioner Walker said he would like the topic to come back to a special session or work session where all the commissioners could have more time to discuss it. The other commissioners may have different ideas about it. He said what bothered him personally about the current UG’s tax abatement policies is that the developers currently want all the money up front.
Lack of quorum sidelines NCD meetng
The UG Neighborhood and Community Development Committee earlier in the evening did not have enough members present for a quorum, and so postponed all items. Present for that meeting were Commissioners Walker, Murguia and Townsend.