There will be a public hearing at the Nov. 7 Great Bend City Council meeting to discuss tax credits for Trail Ridge Partners, the Leewood-based developer that seeks to expand the Reserves at Trail Ridge apartment complex, the council decided Monday night.
However, in light of changing state laws, the state’s imposition of a tax lid and increased local tax burdens, council members made it clear that offering any tax incentives in the future may not be in the city’s best interest. “We’re kind of in a limbo-like situation,” Councilwoman Allene Owen said.
Trail Ridge Partners is seeking the establishment of a rural housing incentive district for the $1.2 million phase two of the project that involves 48 multi-family units in two residential three-story buildings, plus one one-story clubhouse building on Grant Street across from Wal-Mart. This is a mirror image of phase one which is already in place and also falls under an RHID.
A draft development agreement was available Monday. However, a final development agreement would need to be adopted after a public hearing along with a final ordinance, City Administrator Howard Partington said.
“I’m on a razor’s edge,” Councilman Joel Jackson said. The council has emphasized the need of new housing and he doubted any contractors would build in Great Bend without some form of incentives.
But, “do we need more low-income housing?” Councilman Mike Zinn said. He believes that is what the first phase of the project has become, adding it is also a high-crime area.
“It has changed the rental landscape,” said one member of the audience who owned rental properties in Great Bend. He wasn’t against such tax breaks all together, but said this developer has already been granted a lot of help.
An RHID is a Kansas Department of Commerce program designed to aid developers in building new housing by assisting in the financing through tax credits that are returned to the developer until the project is completed, typically for 15 years. RHIDs are available for any small- to medium-sized city or county in Kansas.
The city would cover all legal and professional costs, fees and expenses incurred by city with regard to the preparation of the agreement and any and all other ordinances, resolutions or other documents necessary for implementation of the district as well as for representation and appearances of legal counsel at any hearings or proceedings required to implement the district.
Trail Ridge Partners are responsible for all construction and development expenses.
