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The Rundown – City advances tax district for senior housing project

Post Date:06/26/2019 10:15 AM

The Rundown is prepared by the City of Newton Public Information Office to summarize the City Commission meeting and does not represent official Commission minutes.

7 p.m. June 25, 2019, Newton City Commission meeting

At Tuesday night’s meeting, the City Commission took a step forward on a proposed senior housing project near 24th Street and Anderson by beginning the process of establishing a Rural Housing Incentive District at the site.

As proposed by Red-Wood Development of Joplin, Missouri, the Newton Estates project would include approximately 60 senior (55+) housing units, both income-qualified and market-rate. They would be single-story buildings faced in brick or stone and would include a clubhouse with a kitchen, workout facility, library and office.

The Rural Housing Incentive District works like a Tax Increment Financing (TIF) district to capture the newly generated property tax revenue for up to 15 years to pay for construction of the necessary public improvements, such as utilities and streets. The City’s resolution will be sent to the Kansas Secretary of Commerce for consideration.

The developer is also pursuing funding from the Kansas Housing Resource Corporation in the form of Low-Income Housing Tax Credit. In exchange for the tax credit, the developer agrees to reduce the monthly rent on a portion of the units to make them more affordable and meet local demand.

The City’s 2010 and 2019 Housing Study and Needs Assessments both identified a need for market-rate and income-qualified senior housing. Red-Wood recently completed several similar housing developments, including in Webb City, Missouri, and Arkansas City, Kansas.

In other action, the City Commission:

  1. Awarded a contract for Old Main sewer upsizing to Nowak Construction for $1,278,581.10.
  2. Approved a Request for Qualifications for architectural services for a new Park Maintenance Facility on land the City owns near First Street and Boyd. For the past five years, the City has leased a building at 225 S. Meridian as a temporary solution, but the building needs significant improvements and isn’t well-suited to the work being done there.
  3. Heard a report from City Manager Bob Myers that after the approval at the last meeting of the new home construction incentive program, building permits for three new houses have been pulled, all with incentive applications pending.
  4. Heard 2020 budget requests from external agencies: Grand Central senior center, requesting $10,000; Newton Area Chamber of Commerce, requesting $30,000; and Harvey County Economic Development, requesting $135,500.
  5. Approved a request to use the East Sixth Street parking lot and to waive special event fees for The Gathering’s Splash Sunday on July 14.
  6. Approved a temporary alcohol permit for the Harvey County Free Fair on Aug. 2-4.
  7. Appointed Denise Goodnite and H. Michael Bonner to the Newton/North Newton Planning Commission.
  8. Authorized condemnation proceedings to acquire right-of-way necessary to extend water lines to serve Newton City/County Airport, and approved an agreement with the Klaassen Trust for conveyance of right-of-way and easements.
  9. Approved an agreement with Charlesworth Consulting for $9,750 to develop a Request for Proposals for insurance services.

For more information, please contact Director of Communications Erin McDaniel at 284-6055 or