news1@ulyssesnews.com
The Ulysses City Council has long recognized the need for more affordable housing in Ulysses, and September 25, made it a little easier for builders to bring more housing to town with the creation of a Reinvestment Housing Incentive District. The council got the idea because of interest in a plot of undeveloped land off South Main Street south of McDonald’s bordered by East Miller Avenue, South Glenn Street and East McDowell Avenue.
Two developers have come forward with plans for the land, and the RHID will make it easier for them to get started. Jesus Estrella has created a plan for the site, and Edgar Ortuno from OC Quality Custom Homes out of Liberal made a presentation to the council Aug. 28.
Resolution 2024-9 was unanimously approved.
A housing study was conducted and City Administrator Luke Grimes met with a housing committee.
“It was a good conversation, I felt like we made some good progress,” Grimes said. “We’re kind of zeroing in on some ideal places for housing in general and what works for the district.”
The city specifically discussed the property off south Main, but it can be applied anywhere in the city limits.
“This gives us a real solid start,” Grimes said. “The housing study we got was saying we needed 12 units per year for the next 10 years to keep up with what they anticipate for population growth.”
RHID is a program designed to aid developers in building housing within communities by assisting in the financing of public infrastructure improvements. RHID captures the incremental increase in real property taxes created by a housing development project for up to 25 years and the revenue can be used for reimbursement for incurred costs or to pay debt service on bonds. RHID captures the incremental increase in real property taxes created by a housing development project for up to 25 years. The incremental increase can be used to pay debt service on bonds issued to fund the project or transferred to the developer as reimbursement for costs incurred.
In order to take advantage of the incentive, property must be within a designated district. Districts are defined by the City or County and must be based on a Housing Needs Analysis.
The property tax increment can be used to reimburse costs such as for the following items:
Land acquisition, Site preparation, Sanitary/storm sewers, Drainage conduits, Channels and levees, Street grading, Paving, Street lighting fixtures, Connections and facilities, Gas, water, heating, and electrical services in public right of ways, Sidewalks, Water mains and extensions.
“There’s no commitment from the city to invest any money whatsoever by passing this RHID tonight,” Grimes said. “All the RHID is saying is this is where we want to see housing go in, this is where there will be those tax advantages if it does in the future.”
City Attorney Lynn Kohn said that, in theory, once an RHID is established and approved by the state, a developer who wants to build houses can come to the city and the city can tell them about the RHID.
“It just makes it where it’s an available option for a developer for those particular areas,” Koehn said.
The council previously discussed trying to make a decision on the property off South Main - known as the Miller-Sykes Housing Proposal - at its October. 8 meeting. Estrella originally offered $5,000 for the land and Ortuno countered with the same offer. Estrella provided a Proof of Concept for the land, and wants to build 20 2-bedroom apartments in two phases.
“What he wanted to do was retain ownership and rent them all out,” Grimes said.
Grimes added that Ortuno was “Chomping at the Bit” but Grimes said the housing committee doesn’t feel $250,000 homes would do well on that block. Ortuno told Grimes that whatever the city thinks is best, he will make it happen.
“I haven’t seen a revised proposal from them yet, but they’re open to do whatever,” Grimes added.
•The council agreed to a change to City Administrator Luke Grimes’ contract to allow him to attend classes at Wichita State University in order to attain his Master’s Degree. The cost will be $20,000 and Grimes must work for the city for two years after he earns his degree. Koehn put together a proposal.
“Basically it just limits it up to $20,000, it cannot exceed that and it has to be solely for obtaining a Master’s in Public Administration,” Koehn said. “And then a minimum of two years after the date of getting his most recent reimbursement for that program that he maintains employment with the city, and if not then he’s got to reimburse the city and we can come after him for it. It’s pretty simple, it’s pretty straightforward.”
The council unanimously passed the addendum to the contract.
Grimes said Sept. 11 that the program is a standard employee benefit the city offers.
“It’s just an employee benefit that the city offers to all of our employees that want to pursue higher education of some kind that is approved by their supervisor and will help them in the role their in,” Grimes said. “It’s just a general employee benefit.”
•The next meeting will be on Tuesday, October. 8 instead of the normal Wednesday so the council can attend a conference in Wichita.
Comments
No comments on this item Please log in to comment by clicking here