Courtesy of the City of Manhattan.
Manhattan will pick up an increased portion of outstanding infrastructure costs in a Lee Mill Village low-income senior living development.
Facing $300,000 in increased development costs, the Manhattan Area Housing Partnership asked that the city split the difference with them and lower MAHP’s purchasing price for the 19 lots from $380,000 to $285,000 and raise Manhattan’s match to equal that. The City of Manhattan previously struck a real estate deal with MAHP that involved the city paying $190,000 — one third — of the outstanding special assessment taxes.
The commission also approved an amendment to the development plan to allow for approximately $220,000 in public infrastructure improvements with no city match.
Once closed, the sale would leave 16 lots of Lee Mill Village land in city ownership. Manhattan has been working to parcel out the land since acquiring it in a tax sale in 2012 following a failed development project, also leaving the city with its specials.
Courtesy of the City of Manhattan.
“This was a bad investment that went south and we’re cleaning it up,” says Commissioner Linda Morse. “The best thing we can do is just get rid of it.”
The city commission approved the item by 4 to 1 vote, with Mayor Pro Tempore Wynn Butler opposing. Butler says he’s lost faith in the MAHP after coming back with a reduction on their prior agreement. Butler also raised questions about picking up a bigger piece of the price tag as the developers plan additional infrastructure work for the project. He previously opposed waiving more than $90,000 in utility and permit fees for MAHP.
“It seems like it’s getting to the point where we’re almost giving these things away.”
Now approved, MAHP Executive Director Jill Jacoby’s plan is to close the sale in June and begin construction this summer.
“We will be ready to build and we will not be asking for anything else at this time or in the future.”
Deputy City Manager Jason Hilgers says every year the city owns the property it is responsible for $110,000 in specials and that this sale relieves $51,000 of that annual bill while also getting the property back on the tax rolls.
“This is speculation on my part, but I do believe with this redevelopment we will generate more interest,” says Hilgers. “If you’ve taken a drive by the property, it is a rough area — it is not all that attractive.”
“If we see these 18 duplexes fulfill [lots]34 through 52, I believe it’ll spur more interest in those remaining 16 lots.”
Commissioner Mark Hatesohl says that element was enough to get him to vote for the project, adding these are the kinds of items Manhattan can look into to address affordable housing concerns.
“If we can get that back on the tax rolls generating some income, get the neighborhood looking nice and decrease the city’s overall exposure,” Hatesohl says. “I think this apparently is the best thing we’re going to get out of this and at least we got something instead of a continuous money pit.”
The non-profit community housing development organization plans to construct 18 rent-controlled, two-bed, one-bath duplexes for people aged 55 and up making between 40 to 60 percent of the median income for the area as well as a club house for the community. Mayor Usha Reddi says they don’t have many options to move forward, saying they tried for years to get bids on the lots to no avail.
“We were fortunate to have Jill [Jacoby] as well as Tim Schultz come forward with a plan of some kind.”
Commissioner Aaron Estabrook, though, called for more transparency. He didn’t fault MAHP or any specific individual, but added the years-long process surrounding the sale and development of the land hasn’t been ironed out for people in the community.
“The worst thing we could do is have this or any entity fail,” says Estabrook. “And that sours the pool for the entire mentality of affordable housing.”
Estabrook pointed to a proposed housing advisory board as a group that could facilitate the process more efficiently.
According to the MAHP, the project will be a $7 million development. Rents for the duplexes will range from $450 to $650 depending on income.
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The Manhattan Regional Airport will be providing tenant businesses with 3 months rent relief after receiving federal CARES Act funding. The commission unanimously voted to accept the grant.
The federal law allocated $7.4 billion to commercial service airports, of which Manhattan was allotted a $2.1 million grant. That money can be used to cover normal operating expenses, debt service and rent relief.
The airport and tenant businesses are all being hit with revenue loss following a 95 percent reduction in normal enplanement numbers — a national trend that has been realized locally. Rent relief for 3 months for on-site businesses such as American Airlines, Hertz, Enterprise, the Kansas Jet Center and more would cost approximately $30,000. Once all other expected expenses are removed, Director Jesse Romo estimates about $701,000 remaining in the grant.
Manhattan Regional Airport Director Jesse Romo breaks down how CARES Act grant money will be used by his organization. (Courtesy of the City of Manhattan)
“When you look at our total debt service payments for an entire calendar year, it’s a little over $600,000,” says Romo. “In order to make sure we still cover debt service payments, we can do that even if we reimbursed all of our operating expenses this year and offered rent relief to the tenants that are most directly impacted by the loss of air service.”
Commissioner Hatesohl questioned whether 3 months rent abatement was enough, saying he hopes he’s wrong but expects it will take longer for the travel industry to rebound from a 95 percent reduction in business. Mayor Reddi echoed that concern.
“I think there needs to be — 3 months you have, [but]6 months, 12 months, 18 months — kind of a plan,” says Reddi. “Because I think that’s how long it’s going to take for some of that confidence to come back to travel by air.”
Romo says they are prepared to return for another round of rent relief depending on the speed of the travel industry’s rebound, adding that this is “a good start” facing uncertainty going forward.
Commissioner Aaron Estabrook also says the speed with which relief came warrants thanks to the region’s representatives in congress.
“Sen. [Jerry] Moran was focused on the airport and not the airline bailout,” says Estabrook. “And here we are two months later, less than two months later, and we’re seeing the effects of that.”
Commissioners also briefly discussed plans for the airport’s parking lot overhaul,
approved in September 2019. Hatesohl says the project wouldn’t be big on his radar at the moment, noting the decreased enplanements would make the need for more parking questionable. Morse, though, said the project is already a done deal and that now would be a good time to do the project to avoid increasing congestion.
Romo says they will be returning to the commission to discuss a parking management plan for the project, which would have included a proposed parking fee sufficient to cover the debt service of the construction. Now that enplanements have gone down, though, Romo says they’ll have to re-evaluate their revenue forecasts and projections.
The post Manhattan shrinks price tag for senior living development, accepts millions in airport grant appeared first on News Radio KMAN.
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