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The Rundown – City approves tax district for senior housing project

Post Date:10/09/2019 4:34 PM

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. Oct. 8, 2019, Newton City Commission meeting

At Tuesday night’s meeting, the City Commission approved a development plan for a proposed senior housing project near 24th Street and Anderson and established a Rural Housing Incentive District (RHID) at the site.

As proposed by Red-Wood Development of Joplin, Missouri, the Newton Estates project will include approximately 60 senior (55+) housing units, both income-qualified and market-rate. They would be single-story multi-family buildings, and the development will 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 25 years to pay for construction of the necessary public improvements. For this project, it amounts to about $1.54 million for things like utilities, streets and parking, and development fees. It allocates strictly the new tax revenues from this project; no existing tax dollars are used.

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. Proclaimed Oct. 20-26 as Newton BPW Women’s Week.
  2. Directed City staff to draft an agreement with the State Historic Preservation Office for the State to take over the review process for building projects that are subject to historic preservation guidelines but would allow the City to continue to do “minor” reviews administratively at the local level. The Commission will consider the agreement at a future meeting.
  3. Approved a request by Avcon Industries for permission to expand the hangar it leases at Newton City/County Airport, pending FAA approval.
  4. Approved a letter of support for Asbury Park’s grant application to the Kansas Department of Transportation for a new 14-passenger bus.

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