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8.2 Housing Development Proposals
CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 05/03/2021 4:00 P.M. AGENDA SECTION NO: 8 ITEM NO: Page t ORIGINATING DEPARTMENT: Community & Development Services BY: Lauren Driscoll FISCAL APPROVAL: BY: FIN BY: ITEM: Resolution 21-7954 and 21-7955, Making certain findings and determinations as to the need for housing within the City of Salina, Kansas and setting forth the legal description of real property proposed to be designated as a Rural Housing Incentive District (RHID) within the City. BACKGROUND: Resolution 16-7315 adopting and implementing the 2015 Live Salina Housing Assessment and Strategic Plan was adopted by the Salina City Commission on January 25, 2016. This resolution, the associated assessment and plan were the result of 18 months' worth of work with RDG Planning and Design Group, a consulting firm based out of Omaha, Nebraska. Since 2016 Salina has been successful in becoming the chosen expansion location of several economic development prospects. One Vision, a commercial airplane restoration company, has relocated to Salina from Sioux City, Iowa bringing 200+ new jobs and recently indicating their desire for additional employment expansion. Schwan's and Great Plains Manufacturing have both announced substantial expansions that will result in 635 newjobs by 2025 with Great Plains estimating another 200 new jobs between 2025 and 2030. Additional growth in the community, supported by these new jobs and the completion of the Downtown Revitalization Project, should result in 263 new jobs in Downtown according to Salina 2020. Associated industries like medical, education, retail, and entertainment will be affected by the influx of new jobs and are expected to see an increase in their own employment needs in order to meet new demands. A direct impact on the community created by the generation of new jobs is an increased need for housing. Salina and Saline County's current available employment population is not enough to meet these new employment demands, therefore, new employees will be needed from outside the community. The Salina housing market has been tight for a number of years. Since 2015 the City has only added 103 new single family residential units. In addition to a low inventory of available homes to purchase, the City's rental stock is substantially challenged with most apartment complexes being limited by tenant age and/or income requirements. All of these barriers combined have created a challenging housing market within Salina for both rental and ownership. In January of 2021 the City began working again with RDG Planning and Design Group to update the 2015 Live Salina Housing Assessment and Strategic Plan. The purpose of updating the plan has been to ensure that the community's demographics and new employment numbers are as current as possible, allowing the City to understand the projected housing need. Additionally, the City wanted the updated plan to objectively assess the housing development challenges and costs with the anticipation that developers would be seeking financial assistance or incentives in the future from the City. As a part of this project RDG will help research and develop a housing incentive policy for the City to follow as a way to meet the City's housing goals, ensure financial viability and timely development of new housing. Traditionally, housing incentives have been used to produce units at a certain price points or to get units into communities where building was not feasible. These policies resulted in housing incentives AGENDA SECTION NO: ITEM NO: Page 2 CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 05/03/2021 4:00 P.M. ORIGINATING DEPARTMENT: Community & Development Services BY: Lauren Driscoll FISCAL APPROVAL: BY: FINAL APPROVAL: BY: mainly being applied to the most urban and most rural communities in our county. Today, we are in a national housing crisis where demand is exceptionally high, building materials are exceptionally expensive, the supply chain is slow, manual labor is limited and lending is tight. Developers know that all communities have a need for housing right now and they can be selective, doing projects only where the risk is lowest and access to supplies and labor are easiest. That is why housing incentives are becoming more and more common as cities of all sizes struggle to house their citizens. Housing incentives are typically addressed through a taxing mechanism, grant or program administered by local, state and federal authorities. The City Commission has had several presentations since February reviewing different incentive tools. Salina has several incentive programs adopted locally that can be used to incentivize housing: Community Improvement Districts, the Neighborhood Revitalization Program, and Special Redevelopment Areas. The City can also authorize Industrial Revenue Bonds for large scale multi -family projects that qualify as a commercial venture rather than construction of owner occupied housing. Three state programs available for incentivizing residential development include: Rural Housing Incentive District (RHID), Low Income Housing Tax Credit (LIHTC), and Moderate Income Housing (MIH). Part of RDG's work with the City during the Live Salina Update includes understanding how these incentives work in relation to the City's housing needs, what incentives apply best in which situation, and if there are other incentives that need to be developed for the City's use. Since February of 2021, Marty Shukert of RDG, has been presenting his findings related to the Live Salina Plan Update to the City Commission and gathering their feedback with the ultimate goal of creating a new housing incentive policy. There are to be a total of 5 presentations with the first one happening February 2"d, 2021 and the last one occurring May 10th, 2021. At the February 2nd study session, staff asked if the City Commission wanted to have housing incentive requests brought to them prior to a policy being adopted, and the answer was yes. Since that time staff has been working with several parties who are interested in constructing housing in Salina. Below is a brief list of potential projects being discussed, many of these are at different stages in the development process: • Lee Building, Phase II (LIHTC) • Penn Campus/Old Hospital (Senior, LIHTC) • Centennial Road, 300(ish) units Single Family Residential • Multi -family and Single family mix on 117 acres • 100 units of apartments and townhomes CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 05/03/2021 4:00 P.M. AGENDA SECTION NO: ITEM NO: Page 3 ECONOMIC DEVELOPMENT TOOLS: ORIGINATING DEPARTMENT Community & Development Services BY: Lauren Driscoll Rural Housinq Incentive Districts (RNID): RHID is a program designed to aid developers to build housing within communities by assisting in the financing of public improvements. RHID captures the incremental increase in real property taxes created by a housing development project for up to a maximum of 25 years. In order to take advantage of the incentive, property must be within a designated redevelopment district. Districts are defined by the City or County and must be based on the Housing Needs Analysis. RHID is authorized for any city in Kansas with a population less than 60,000 in a county with a population of less than 80, 000 or for any county with a population of less than 40,000. (K.S.A. 12-5241 et seq.) FISCAL APPROVAL: BY: FIN. BY: ,z.,m., Time In order to use an RHID as an economic incentive tool, several steps must be taken starting with the adoption of a resolution finding a shortage of quality housing within the identified district. The purpose of this resolution is to serve as a formal action of the decision making body to the State's Department of Commerce to initiate approval of the district for the purpose of the RHID program as defined by state statue. Following approval by the Department of Commerce a development agreement and district development plan must be developed and brought to the City Commission for Action. In order for the City Commission to act, a Resolution calling for a public hearing must occur 30-70 days prior to the hearing. Notice of the public hearing must be delivered to the County and USD 305 and published in the Salina Journal two (2) weeks prior to the hearing. Following the public hearing there is a 30 day protest period for the County and USD 305. The initial RHID resolution for each proposed project is included with this packet and proposed for consideration and action by the Commission. This is just the first step of several if the City Commission chooses to form an RHID. For further review, a detailed timeline regarding the RHID process is attached and contains highlighted sections denoting how this meetings actions pertain to that timeline. As the City does not have an adopted RHID policy (an adopted policy is not required by the State statue), a summary memo and a collection of RHID policies from around the state have been included with this packet as reference. Moderate Income Housing Program (MIH): The MIH program is administered by Kansas Housing Resources Corporation (KHRC) and serves the needs of moderate -income households that typically don't qualify for federal housing assistance. MIH CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 05/03/2021 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL: NO: Community & Development BY: ITEM Services FINAL APPROVAL: NO: Page 4 BY: Lauren Driscoll BY: grants and/or loans are awarded to cities and counties for down payment assistance or to develop multi -family rental units, single-family for -purchase homes, and infrastructure in communities with populations fewer than 60,000 people. $400,000.00 is the maximum amount that can be applied for and the monies that fund this program come from the State Housing Trust Fund. The application process typically opens in July with applicants responding to an RFP issued by KHRC. The response is usually due in September with awards being announced by November/December. Unlike the Low Income Housing Tax Credit (LIHTC) program also administered by KHRC, where the developer applies directly to KHRC, MIH requires that the City apply on behalf of the developer and the money be awarded directly to the city. CURRENT REQUESTM: Two residential projects are seeking City Commission support in their use of an RHID as an economic incentive tool. One of those two projects also plans to use the Moderate Income Housing program and a waiver of City building permit fees, in conjunction with the RHID. In order for developers to provide sufficient information to the City Commission, staff developed a Residential Housing Incentive Request Form. Each request form and the associated support materials are attached. Examples of three (3) similar reference projects completed by each developer have been submitted by all parties and have been included as demonstration of their experience and proficiency. Magnolia Pointe: This project is located on the vacant 10.68 acre parcel north of Menards and east of Fairfield Inn & Suites (See Resolution 21-7954 for a legal description and maps.) The site is within the City Limits and is un -platted with a current zoning of C5. This project has access to water and sewer but neither are installed on site. No perimeter road fees or other special assessments apply to this property. The site is not within a floodplain or floodway. This project will consist of 168 units of multi -family development spread out between six (6) buildings. The construction duration is 24 months with 84 units being produced every 12 months with a desired construction start time of Fall 2021. This project is being proposed by Perry Reid Construction, an established full-service Multi -family developer working throughout the Midwest. Perry Reid currently owns and manages the Chapel Ridge Apartments and The Reserves At Prairie Glen. The total project cost is $22,000,000.00 - roughly (because construction material costs are so unpredictable right now). The costs breakdown as follows: 1.) Land Acquisition Cost: $837,397.00 2.) Building, Infrastructure, and other hard Constructions Costs: $20,000,000.00 3.) Soft Costs: $1,300,000.00 Financing for this project is identified at a rate 4.5% with equity of $5,500,000.00 and debt of $16,500,000.00. Annual debt service is projected to be $1,000,000.00 with annual operation and maintenance expenses of 40% of revenue. The developer is hoping for a 5%-10% return on investment but that is impossible to determine at this time due to so many uncertainties in the market. CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 05/03/2021 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL: NO: BY: Community &Development ITEM Services FINAL APPROVAL: NO: Page 5 BY: Lauren Driscoll BY: The RHID terms being request are 10 years at 100% property tax abatement Ryan Addition: This project is located on a vacant 25 acre parcel at the corner of S. Ohio St. (East Side) and E. Schilling Rd. (South Side). The maps and legal description for this property are attached to Resolution 21-7955. The site is within the city limits and is platted with a current zoning of R1, R2, and PC -5. The proposed residential development will only be occurring on the R1 and R2 portions of the parcel. This project has access to water and sewer but neither are installed. This parcel seems to be a corner lot, however the parcel's E. Schilling Rd. frontage is blocked by a 120ft City owned ditch. Therefore, the property only has frontage on one perimeter road, S. Ohio, which is paved but not to city standards. As per the City's perimeter Road Policy, a benefit district must be formed (by the majority of property owners) or improvement must be made to the perimeter street upon development. However in the case of this parcel, several other agreements impact the property and its ability to form an improvement district. Adjacent land owners to this parcel include Saline County (the expo land) and the Liberty Addition (Sunflower Bank Headquarters). A 2011 agreement between the City and County related to the City becoming the owner of Oakdale Park resulted in a condition where the County agreed to pay a fixed sum of $200,000.00 if a S. Ohio benefit district was formed or if improvements were made to S. Ohio through other means. An annexation agreement approved for Liberty Addition notes that because the property is a corner lot (S. Ohio and E. Schilling frontage) and was already subject to a benefit district for E. Schilling Rd., it could not be subject to a benefit district for S. Ohio St. In 2016, the City Commission required that the owner of Ryan Addition (the subject parcel) file a "No Protest Agreement" as part of their final plat. That agreement gives the owner's consent to participate in any future benefit district formed to make improvements to S. Ohio. Therefore, the outcome of these various agreements and policies applicable to this property and S. Ohio is a near inability to form a benefit district. The "No Protest Agreement" and the City's Perimeter Road Policy can only apply if a benefit district can be created. To form a benefit district you have to have the majority owners participate, without the Liberty addition being required to participate, formation is not likely. No other special assessments apply to this property. The site is not within a floodplain or floodway. This project is being proposed by South View Estates, LLC, a group comprised of local builders and developers including Stan Byquist, Kelly Dunn, Craig Piercy, and Todd Roberg. This project will consist of 108 units of owner -occupied housing, 42 units of units of single-family residential and 66 units of townhomes. The construction duration is 36 months with all infrastructure being completed in Phase I with a desired construction start time of Fall 2021. The total project cost is $20,535,495.00. The costs breakdown as follows: 4.) Land Acquisition Cost: $750,00.00 5.) Building Constructions Costs: $15,264,000.00 6.) Infrastructure Construction Costs: $2,550,000.00 7.) Soft Costs: 291,000.00 / Brokerage & Sales $1,339,455.00 AGENDA SECTION NO: ITEM NO: Page 6 CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 05/03/2021 4:00 P.M. ORIGINATING DEPARTMENT: Community & Development Services BY: Lauren Driscoll FISCAL APPROVAL: BY: FINAL APPROVAL: BY: This project will use a construction loan and incur a cost of $341,000.00 with annual property taxes of $304,475.00. The developer is hoping for a 12% return on investment that included the RHID incentive from the City and the potential awarding of $400,000.00 from the State's Moderate Income Housing (MIH) grant program. This project is also requesting a waiver of building permit fees for all 108 units. The RHID terms being requested are 25 years at 100% property tax abatement. Live Salina Plan: 2021 Update — New Housing Development Program As per the Live Salina Plan's revised demographics, the table below highlights the number of units needed for owner occupied and rental housing in order to meet future needs. The table shows two times periods; now to 2025 and 2025 to 2030. The calculations below the table are based on the number of units needed between now and 2025. Needed Units Owner Occupied Units Rental Units Now - 2025 42- 324 42- 264 Magnolia Pointe: • Rental • Total Units: 168 • Needed Rental Units 432 — 168 Proposed New Units = 264 2025-2030 281 i:: If this project is approved, our "now — 2025 needed units of rentals" would drop from 432 to 264. Ryan Addition: • Owner Occupied 42 Units, Single Family Residential 66 Units, Townhomes • Total Units = 108 Needed Owner Occupied Units 432 — 108 Proposed New Units = 324 If this project is approved, our "now — 2025 needed units of owner occupied" would drop from 432 to 324. CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 05/03/2021 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL: NO: BY: Community &Development Services FINAL APPROVAL: ITEM NO: Page 7 BY: Lauren Driscoll BY: FISCAL NOTE: Based on the new assessed value and current taxing calculations relevant to property taxes for an RHID the follow taxes will not be collected for the identified durations: Magnolia Pointe: 10 year at 100% • Total Appraised Value: $13,890,960.00 • Total Tax over 10 years: $2,129,657.82 • Subtract USD305(20 mills) and State(1.5 mills): $326,278.52 ( not eligible) • Total: $1,803,379.31 o USD305: $538,040.86 o County: $616,226.30 o City: $465,136.58 o Library: $89,233.38 o SAA: $76,440.23 o Extension:$18,301.95 Ryan Addition: 25 years at 100% • Total Appraised Value: • Total Tax over 10 years: • Subtract USD305(20 mills) • Total: $6,077,862.33 and State(1.5 mills): $ (not eligible) o USD305: $ 1,813,339.15 o County: $ 2,076,844.63 o City: $1,567,632.56 o Library: $300,739.95 o SAA: $257,623.66 o Extension:$61,682.38 COMMISSION ACTION OR RECOMMENDED ACTION: Staff has identified the following options for the City Commission's consideration: Action Item No. 1 — Magnolia Pointe The City Commission may: 1.) Approve Resolution No. 21-7954. 2.) Approve Resolution No. 21-7954 with amendments and/or further direction regarding development agreement provisions, additional steps to be taken, etc. as the City Commission deems appropriate. 3.) Postpone consideration of Resolution No. 21-7954 to a specified date and time and provide staff direction regarding additional information or amendments the City Commission would like to request for their further consideration. AGENDA SECTION NO: ITEM NO: Page 8 CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 05/03/2021 4:00 P.M. ORIGINATING DEPARTMENT: FISCAL APPROVAL: Community & Development BY. Services FINAL APPROVAL: BY: Lauren Driscoll I BY: Deny Resolution No. 21-7954 resulting in staff not submitting a Resolution to the State of Kansas Department of Commerce for the creation of an RHID. Action Item No. 2 - Ryan Addition The City Commission may: 1.) Approve Resolution No. 21-7955. 2.) Approve Resolution No. 21-7955 with and/or further direction regarding development agreement provisions, additional steps to be taken, etc. amendments as the City Commission deems appropriate. 3.) Postpone consideration of Resolution No. 21-7955 to a specified date and time and provide staff direction regarding additional information or amendments the City Commission would like to request for their further consideration. 4.) Deny Resolution No. 21-7955 resulting in staff not submitting a Resolution to the State of Kansas Department of Commerce for the creation of an RHID. Attachments: 1. RHID Timeline 2. RHID Policy Memo and Policy Examples 3. Magnolia Pointe — Residential Housing Incentive Request Form 4. Maps 5. Magnolia Pointe Support Material a. Phased Site Plan b. Pictures c. Development Cost d. Rent Schedule e. Potential Unit Mix & # of Beds f. Community Support for Comparable Projects (references) 6. Ryan Addition - Residential Housing Incentive Request Form 7. Maps 8. Ryan Addition Support Material a. Financial Analysis b. Lot Development Expenses c. Project Costs With Special d. Project Cost With Incentives 9. Resolution 21-7954, Magnolia Point (DRAFT) 10. Resolution 21-7955, (DRAFT) CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 05/03/2021 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL: NO: BY: Community &Development Services FINAL APPROVAL: ITEM NO: Page 9 BY: Lauren Driscoll BY: Return down until this line is on the bottom of your last page. Salina RHID Timeline Everythign highlighted in yellow is what is being addressed at the 05/03/2021 Meeting Housing Needs Analysis • Must meet the standards set forth in K.S.A. 12-5244 & Secretary of Commerce Guidelines (a) The governing body of any city or county is hereby authorized to designate rural housing incentive districts within such city or county. Any city governing body may designate one or more such districts in such city, and any county governing body may designate one or more such districts in any part of the unincorporated territory of such county. Prior to making such a designation, the governing body shall conduct a housing needs analysis to determine what, if any, housing needs exist within its community. After conducting the analysis, the governing body shall adopt a resolution containing a legal description of the proposed district, a map depicting the existing parcels of real estate in the proposed district, and a statement of the following findings and determinations: (1) There is a shortage of quality housing of various price ranges in the city or county despite the best efforts of public and private housing developers; (2) The shortage of quality housing can be expected to persist and that additional financial incentives are necessary in order to encourage the private sector to construct or renovate housing in such city or county; (3) The shortage of quality housing is a substantial deterrent to the future economic growth and development of such city or county; and (4) The future economic well-being of the city or county depends on the governing body providing additional incentives for the construction or renovation of quality housing in such city or county. NOTE: The City wilt/can use the Live Salina Plan and associated update to submit as our a statement of the following findings and determinations for items 1-4. (b) The resolution containing the findings contained in subsection (a) shall be published at least once in the official newspaper of the city or county. (c) Upon publication of the resolution as provided in subsection (b), the governing body shall send a certified copy of the resolution to the secretary, requesting that the secretary review the resolution and advise the governing body whether the secretary agrees with the findings contained therein. If the secretary advises the governing body in writing that the secretary agrees with each of the findings of the governing body, the governing body may proceed to establish the district as set forth in this act. If the secretary fails to agree with the findings, the secretary shall advise the governing body in writing of the specific reasons therefor. Resolution No. 1 • City Council Adoption of Resolution No. 1 (per K.S.A. 12-5244) Must be published at least once in official newspaper of City/County (per K.S.A. 12- 6244(6) Secretary of Commerce Approval HNA, typically within 30-45 days Certified copy of resolution submitted to Secretary (K. S.A. 12-6245) Upon Approval of Resolution No. 1 and Housing Needs, proceed to Resolution No. 2 Development Plan/Agreement Preparation • Negotiate Draft Development Plan/Agreement • Planning Commission Consideration/Approval of final plan Resolution No. 2 • Comply with K.S.A. 12-5245 Prior to the adoption of the plan and designation of the district, the governing body shall adopt a resolution stating that the governing body is considering such action. The resolution shall provide notice that a public hearing will [be] held to consider the adoption of the plan and the designation of the district and contain the following elements: (1) The date, hour and place of the public hearing; (2) The contents of paragraphs (1) through (4) in subsection (a) of this section; (3) A summary of the contractual assurances by the developer and comprehensive feasibility analysis; and (4) A statement that the plan is available for inspection at the office of the clerk of the city or county at normal business hours; (5) A statement inviting members of the public to review the plan and attend the public hearing on the date announced in the resolution; The date fixed for the public hearing shall be not less than 30 nor more than 70 days following the date of the adoption of the resolution. The resolution shall be published at least once in the official newspaper of the city or county, with the final publication being not less than one week or more than two weeks preceding the date fixed for the public hearing. A certified copy of the resolution shall be delivered to the planning commission of the city or county and the board of education of any school district levying taxes on property within the proposed district. If the resolution is adopted by a city governing body, a certified copy also shall be delivered to the board of county commissioners of the county. If the resolution is adopted by a county governing body, it also shall be delivered to the governing body of any city located within three miles of such proposed district. • Prior to Adoption of Plan & District must Adopt Resolution • Resolution Noticing Public Hearing to be Held Public Hearing Preparation Public Hearing must be held not less than 30 nor more than 70 days following the date of the adoption of Resolution No. 2 Resolution must be published at least once in official newspaper. Final publication not less than one week or more than two weeks preceding the date fixed for the public hearing. Certified copy of Resolution No. 2 provided to Planning Commission of City/County and BOE Public Hearing • Comply with K.S.A. 12-5246 • (a) At the public hearing, a representative of the city or county shall present the proposed plan for the development or renovation of housing in the proposed district. Each project proposed for the district shall be identified and explained. At the hearing the developer or developers that have contracted with the city to undertake such project shall be identified and present in person or through such developer's representative. Following the presentation, all interested persons shall be given an opportunity to be heard. The governing body for good cause shown may recess such hearing to a time and date certain, which shall be fixed in the presence of persons in attendance at the hearing. (b) Upon the conclusion of the public hearing, the governing body may adopt the plan for the district and may establish the district by ordinance or, in the case of any county, by resolution. The boundaries of such district shall not include any area not designated in the notice required by K. S.A. 12-5245 . Any addition of area to the district or any substantial change to the plan shall be subject to the same procedure for public notice and hearing as required for the initial establishment of the district. (c) The ordinance or resolution establishing the district shall be null and void if, within 30 days following the conclusion of the hearing: (1) The board of education levying taxes on such property determines by resolution that the proposed district will have an adverse effect on such school district; (2) the governing body of any city located within three miles of [the]district proposed to be established by a county determines by ordinance that the proposed district will have an adverse effect on such city; or (3) the board of county commissioners of the county in which a city governing body proposes to establish such a district determines by resolution that the proposed district will have an adverse effect on such county. Representative of City presents proposed plan for development and each project. Developers must be present. Any interested party may be heard. At conclusion of hearing, Governing Body may establish district by ordinance (City) or Resolution (County). Veto Procedure • If within 30 days following the hearing, the Board of Education or City/County finds an "adverse effect" the Ordinance is null and void. CITY MANAGER'S OFFICE Jacob J. Wood Deputy City Manager 300 West Ash • P.O. Box 736 Salina, Kansas 67402-0736 Ckyof Salina MEMORANDUM TO: City Commission FROM: Deputy City Manager, Jacob Wood DATE: April 29, 2021 SUBJECT. RHID Policy Overview TELEPHONE (785) 309-5700 FAX (785)309-5711 TDD - (785) 309-5747 E-MAIL • iacob.wood(a)salina.oro WEBSITE • www.salina-ks.gov The City of Salina does not currently have a Rural Housing Incentive District (RHID) policy. State law does not require a policy, but most jurisdictions have adopted guidelines they use to determine the appropriate circumstances for applying this incentive. RHID is limited to jurisdiction based on population. As such, the City of Salina is likely the largest community in Kansas that is eligible to utilize this incentive. Staff has conducted a review of RHID policies from other jurisdictions that are closest to Salina's population. The policies for Emporia, Hays and Garden City are attached. The following list includes themes present in these policies that should be considered as the City of Salina processes requests: Eligibility is based on housing type o Hays has a requirement that the development contain a minimum of 10 renter occupied low-income or income qualified units (requirement to be waived for a non-profit entity) o Emporia only allows apartment complexes in certain circumstances o Garden City does not limit the type of housing • Financing o Hays will only entertain financing on a pay-as-you-go basis o Emporia and Garden City will consider RHID or Special Obligation Bonds • Eligible Uses of Funds o Hays provides a specific list of eligible uses o Emporia will not reimburse the cost of land acquisition o Garden City does not specify any limitation • Administrative Fee o Hays requires a $1,000 application fee and $5,000 deposit for legal fees o Emporia requires a $1,000 application fee and 3% administrative fee o Garden City requires a 5% administrative fee Claw -Backs o all policies include provisions for claw -backs to be included in the development agreement . Term o Hays and Emporia allow up to 25 years o Garden City has only approved projects for 15 years • Miscellaneous Provisions o Garden City has developed a Housing Incentive Committee that includes representatives of the City, County and School District. The committee reviews all applications, negotiates development agreement terms and provides recommendations to the governing body. PI&Y S G: PAYMENT OF CERTAIN COSTS The City shall require the applicant to enter into a funding agreement or other evidence of the applicant's agreement to pay costs incurred by the City for additional legal, financial and/or planning consultants, or for direct out -of pocket expenses and other costs relating from services rendered to the City to review, evaluate, process and consider the petition for a CID, as well as the continued maintenance of the escrow account for CID revenues and for the processing of payments of CID eligible costs. Such costs and expenses may be deemed costs of the project, to the extent permitted by the Community Improvement District Act. H: FINANCIAL AND FISCAL IMPACT The applicant must detail the proposed method and amount of financing, including any public financial participation requested. The applicant must financially participate in the project in an amount that is at least 25 percent of the total project cost. I: AUTHORITY OF GOVERNING BODY The Governing Body reserves the right to deviate from any policy when it considers such action to be of exceptional benefit to the City or extraordinary circumstances prevail that is in the best interests of the City. Additionally, the Governing Body, by its inherent authority, reserves the right to reject any proposal or petition for creation of a CID at any time in the review process when it considers such action to be in the best interests of the City. SECTION 11. RURAL HOUSING IMPROVEMENT DISTRICT POLICY A: POLICY STATEMENT It is the policy of the City to consider the establishment of a RHID for a development containing a minimum of ten renter occupied low-income or income -qualified units. A qualifying non-profit entity may be granted an exemption from the ten -renter unit minimum. The qualifying non-profit entity shall have been in existence for a sufficient period of time to demonstrate its viability and its proposal shall achieve the overall purpose of this Policy. The granting of the non-profit exemption from the aforesaid ten -unit requirement shall be at the discretion of the City Governing Body. It is the further policy of the City that a RHID shall only be established for projects where the applicant/developer pays for the cost of eligible RHID improvements (at no cost to the City) and agrees to be reimbursed on a pay-as- you-go basis for such costs from the City's receipt of RHID revenues. B. CRITERIA It shall be the policy of the City to create a RHID, if, in the opinion of the Governing Body, it is in the best interest of the City to do so. The Governing Body shall consider the following factors when creating a RHID: 1. Assure taxpayers that the City is not financing an already viable project. 2. Assure taxpayers that the City is not financing an unreasonably high profit margin for developers. Each developer will be required to submit a detail of development costs and net operating income including an Internal Rate of Return to be compared to the market for reasonableness. Page 12 of 18 3. Assure taxpayers that the development provides the City safeguards committing the developer to complete the project. The Development Plan required by statute for each project must determine that the incremental ad valorem property tax revenues generated by the RHID, together with other funds committed by the Developer, will cover the estimated eligible costs of the project. All Development Plans must assume that the initial estimated incremental property tax revenues will remain flat over the term of the RHID (i.e., no plan may assume increasing incremental property tax revenues will be available to cover project costs). All development requests must utilize drought tolerant landscaping and water efficient fixtures in order to minimize impact on water resources. City staff will provide the necessary guidance. C: ELIGIBLE COSTS It is the intent of the City to allow only the following development expenditures within a RHID to qualify for reimbursement out of RHID revenues: 1. Acquisition of property within the RHID 2. Payment of relocation assistance 3. Site preparation 4. Sanitary and storm sewers and lift stations 5. Drainage conduits, channels and levees 6. Street grading, paving, curbs and gutters 7. Street lighting 8. Underground public and limited private utilities, all located within the public right-of-way 9. Sidewalks 10. Water mains and extensions D: METHOD OF FINANCING The governing body will consider creation of a RHID where eligible costs will be financed on a pay- as-you-go basis from incremental ad valorem tax revenues generated within the RHID. The City will not issue special obligation bonds for RHID improvements. E: PROCESS The process for the creation of an RHID District shall be as follows: Application and Supplemental Information. An applicant requesting that the City create a RHID must file: a. an Application for Economic Incentives and Supplemental Questionnaire, as provided by the City's Economic Development Policy, b. a Housing Needs Analysis meeting the requirements of K.S.A. 12-5244(a) and the guidelines of the Kansas Department of Commerce, and incorporating the findings contained in the Current Hays Housing Assessment. c. a Development Plan meeting the requirements of K.S.A. 12-5245, and Page 13 of 18 d. a business plan evidencing that the applicant has the financial ability to complete the proposed project in a timely manner and that the project meets the criteria for establishment of a RHID, as set forth in this Policy. The applicant shall furnish such additional information as requested by the City in order to clarify the application or to assist staff or the Governing Body with the evaluation of the application. 2. Application Fee and Deposit. The application fee and deposit as well as any costs and expenses required to be paid by the applicant pursuant to Section 6 of the Economic Development Policy are not reimbursable pursuant to the Rural Housing Incentive District Act. The applicant will pay all out of pocket costs incurred by the City related to the City's review of the application, all documents related to consideration of a RHID and the development agreement, including but not limited to the City's cost of legal counsel and financial advisors necessary to evaluate and create the proposed RHID. 3. Timing of Submissions. The application and other information required by this Policy must be submitted in sufficient time for staff to follow established procedures for publication of notice, to review the submitted documents and analyze the merits of the proposed RHID in the context of existing Economic Development Policy. 4. Secretary of Commerce Approval. If the Governing Body determines that it is in the best interest of the City to approve the Housing Needs Analysis and move forward with the proposed Development Plan, the Governing Body shall adopt a resolution approving the Housing Needs Analysis and submit such analysis to the Kansas Secretary of Commerce for approval. If the Secretary of Commerce agrees within the findings of the Governing Body set forth in such resolution, the Governing Body may proceed with the establishment of an RHID. 5. Development Agreement. Upon receipt of approval from the Secretary of Commerce, but before the Governing Body takes further action with respect to the creation of the RHID, the City and the Developer shall negotiate a development/performance agreement to implement the proposed Development Plan and including the requirements of this Policy, including particularly the requirements of Section 14 of this Policy related to Performance Agreements. 6. Public Hearing. When the Development Plan, a draft Development Agreement, and all additional information required by the RHID Act and this Policy are ready to be presented to the Governing Body the Governing Body will consider adopting a resolution ordering a public hearing on creation of the RHID and adoption of the plan. The Governing Body shall give such notice and hold such hearing in the manner required by the RHID Act. 7. Governing Body Findings. After the public hearing is conducted, if advisable, the Governing body may create an RHID district by adopting an ordinance creating the district, adopting the Development Plan, and approving the Development Agreement. F: PAYMENT OF CERTAIN COSTS The City shall require the applicant to enter into a funding agreement or other evidence of the applicant's agreement to pay costs incurred by the City for additional legal, financial and/or planning consultants, or for direct out -of pocket expenses and other costs relating from services rendered to the City to review, evaluate, process and consider the request for RHID. Such costs and expenses are the applicant's sole responsibility, and are not generally reimbursable pursuant to the RHID Act. Page 14 of 18 G: AUTHORITY OF THE GOVERNING BODY The Governing Body reserves the right to deviate from any policy when it considers such action to be of exceptional benefit to the City or extraordinary circumstances prevail that is in the best interests of the City. Additionally, the Governing Body, by its inherent authority, reserves the right to reject any proposal or request for the creation of an RHID at any time in the review process when it considers such action to be in the best interest of the City or whenever, in the opinion of the City Commission sufficient properties are already available for the type of development being considered. I: REVIEW The RHID policy will be in place as long as there is a need for low-income and income -qualified housing. The City expects the Housing Needs Assessment will be updated every three to five years. SECTION 12. MEMORANDUM OF UNDERSTANDING Authority to issue memorandums of understanding to consider requests for economic development incentives shall lie only with the City Commission. Such memorandums of understanding shall only be issued by the City Commission, and as an expression of good faith intent, but shall not in any way bind the City to the granting of an incentive. Such memorandums of understanding shall expire six months after issuance, but may be renewed. A public hearing shall not be required prior to the issuance of memorandums of understanding. SECTION 13. NOTICE AND HEARING No incentive shall be granted by the City prior to a public hearing thereon. Notice of the public hearing shall be published at least seven days prior to the hearing in the official city newspaper, giving the time and place, and the hearing may be held at a regular or special meeting of the City Commission. The City Manager shall thereupon notify the Ellis County Commissioners, the superintendent of the appropriate school district, and the clerk of any taxing jurisdiction, excluding the state, which derives or could derive property taxes from the affected business advising them of the scheduled public hearing and inviting their review and comment. Upon request, the City Manager shall provide any such public agency with a copy of the application, which shall remain confidential unless released by the City Commission. The applicant business shall be invited, but not required, to attend the public hearings. SECTION 14. PERFORMANCE AGREEMENT Any incentive granted pursuant to this policy shall be accompanied by a Performance Agreement between the applicant and the City, which shall include provisions governing the situation if an applicant fails to meet the wage, number of jobs, and/or capital investment projections set forth in the original application. Each incentive shall be reviewed annually. The City Commission shall receive the annual review report, and if the City Commission determines that a business or project is not in compliance with the provisions of the Performance Agreement, then the incentive may be modified pursuant to the Performance Agreement as the City Commission deems appropriate. Modifications to the incentive may include, but are not limited to, termination of the incentive, reduction of any incentive (including but not limited to reductions in tax abatement due to failure to meet requirements as set forth in Section 7) and claw -back of any existing incentive. To the extent necessary, the County Page 15 of 18 (Published in the Garden City Telegram on the O ' ay of December, 2019) RESOLUTION NO.J-A A RESOLUTION MAKING CERTAIN FINDINGS AND DETERMINATIONS AS TO THE NEED FOR A HOUSING INCENTIVE POLICY WITHIN THE CITY OF GARDEN CITY, KANSAS AND SETTING FORTH SUCH POLICY TO INCENTIVIZE HOUSING DEVELOPMENTS. WHEREAS in January of 2019 the Finney County Economic Development Corporation funded an update to the 2008 Community Housing Assessment Team (CHAT) report for Finney County in order to document what the specific housing needs were in Finney County; and WHEREAS the updated 2019 CHAT report indicated that Garden City, Kansas will need to build approximately one hundred and six (106) units annually from 2019-2024 and one hundred and thirty-three (133) units annually from 2025- 2030 in order to properly house our growing population; and WHEREAS the following will be utilized to guide staff in developing opportunities to incentivize the development of housing in Garden City, Kansas for the year 2020. NOW, THEREFORE, BE IT RESOLVED by the Governing Body of the City of Garden City, Kansas, as follows: Standards for Incentives: Incentives offered by the City of Garden City (City) should meet all of the following standards: 1. Utilization of an innovative program which assists in financing the cost of infrastructure or qualified development costs with minimal risk to the City at large; 2. Create a sense of partnership with developers in order to work through building code regulations; 3. Create an environment for the development community that offers a predictable development process associated with fair and cost effective incentives. Prohibited Incentives: Incentives which do not fulfill the following standards will not be considered: 1. Assure taxpayers that the City is not financing an already viable project; 2. Assure taxpayers that the development has offered the City safeguards that will commit the developer to complete the project. Incentives: 1. Maintain a single point of contact for developers. The City will assign an individual to work with developers as a facilitator in order to navigate the development process. A single contact for all questions involving procedural, code and development requirements should relieve frustration sometimes felt by developers. The facilitator will in tum work with all other departments to assure that issues involving overlapping authority are resolved. This process should assure the consistent interpretation of City Codes, ordinances and technical standards. The City has already streamlined the review period by providing facilitation, certainty, and clarity throughout the review process. The speed of the review period, however, depends on how staff and the applicant perform together. Providing corrections, responding to comments, and ultimately securing an approval in a timely manner is a responsibility that staff and the applicant's design team share. 2. Utilize state provided incentive programs for both single family and multifamily developments. The Rural Housing Incentive District appears to be the incentive that is the best fit single family and multifamily developments. The District alleviates the need for special assessments by allowing the incremental property tax (e.g. tax on improved property less the tax on the vacant property) to be applied to the cost of the infrastructure for the development. All taxing entities participate. The Finney County Board of Commissioners, the Unified School District No. 457 Board of Education, and the Garden City Community College Board of Trustees are not required to take action to authorize the use of this tool, but do retain the authority to nullify the creation of a District by passing a resolution determining that the proposed District will have an adverse effect to their taxing jurisdiction within thirty (30) days of the public hearing at which the District is created by ordinance of the City. 3. Offer City owned surplus property at fair market value to developers of moderate and higher rental units and homes. The City reserves the right to offer the land as a sole incentive to developers of the preceding ranges. The City does not want to be perceived as undermining the available land opportunities. 4. Nothing shall prohibit the City from utilizing traditional incentives for public improvements within the City as approved by the Governing Body. Examples include special assessments and/or special benefit districts. 5. Sponsoring or co -sponsoring grant request to state and/or federal agencies. Examples may include Community Development Block Grants, U.S.D.A. grants or similar type programs which may provide assistance with infrastructure, housing or housing related programs. Standards for Applying the RHID Program: Any development that applies to participate in the RHID program will: 1. Perform a Financial Analysis as required by statute for each project to determine if the rebates will cover the estimated eligible costs of the project. Such analysis shall be calculated at a flat rate pegged to the initial estimated rebate increment. 2. Pay an administration fee equal to five percent (5%) of the total estimated costs for the project to the City which may be included in the list of eligible project expenses. 3. Pay 100% of the eligible expenses of the project and receive annual rebate payments from the City; or 4. Request that the City bond, through special obligation bonds, the total of the approved eligible expenses list. Should the City bond the costs, the Developer shall provide a payment equal to no less than fifty percent (50%) of the estimated total of eligible costs for the project should the Developer request the City to bond the eligible costs for the project and pay to the City interest at a rate of two times the prime rate. The Developer will sign over all rebates to the City for the purpose of repayment of the Bond. Funds will be kept in a dedicated fund account for the duration of the project to protect against default. After the conclusion of the project the funds shall be used as follows: A. Community Development; I. Biennial Housing Studies II. Biennial Commercial Market Studies III. Additional Incentive Programs for Housing Projects B. Extending, oversizing, and maintaining public utilities; C. Extending, upgrading, and maintaining public right-of-ways; 5. The developer shall provide a summary describing how the project meets the needs outlined by the most current housing study provided by the City. Reservations: The City reserves the right to not allow the use of incentives or the right to vary the percentage of City participation when unusual circumstances so warrant or whenever, in the opinion of the Governing Body sufficient properties are already available for the type of development being considered. Housing Incentive Committee: A Housing Incentive (Committee) should be comprised of the Chief Elected Official or his/her designee and Chief Administrative Officer or his/her designee from each of the following taxing jurisdictions; The City of Garden City, Finney County, USD 457, and Garden City Community College. The Committee shall conduct a thorough review and evaluation of any housing incentive application brought forward for the Governing Body's consideration, which includes incentive requests which will result in a property tax deferral or rebate. The Committee shall gather and review any additional information deemed necessary to determine if the applicant meets the objectives and criteria of this and any applicable EORDRiA CITY OF EMPORIA, KANSAS POLICY MANUAL Subject: Issued by: Effective Date: Housing Development and Rural City Commission Housing Incentive District Policy Resolution No. 4/21/2021 1-12 HOUSING DEVELOPMENT AND RURAL HOUSING INCENTIVE DISTRICT POLICY A. BACKGROUND The Emporia City Commission regularly receives requests for City assistance in promoting and developing additional housing units through utilization of Rural Housing Incentive District (AHED) tools, infrastructure funding, and other incentives. The City Commission from time to time sets goals and incentives based on recent studies, such as the Lyon County Housing Study of 2020, that identify specific needs and shortages in community housing supply. C1 It is the purpose of this policy to set forth certain criteria for application and utilization of RHS and other incentives as provided for in Kansas Statutes based on identified community housing needs. C. POLICY I. Priority Housing Types Section 1: Allowable Housing Tunes The following owner -occupied housing types shall be allowed to utilize the RHID incentive as provide for in Kansas Statutes: 1. Single family detached residential structures, 2. Single family attached residential structures, 3. Duplex residential structures, 4. Townhouses, 5. Condominiums, 6. Garden/patio homes, and 7. Any residential structure comparable in density to those outlined above and consistent with adopted building and zoning regulations. � i The housing types shall be defined by the adopted building and zoning regulations of the City of Emporia in effect at the time an application for the RF IID program is received by the City Manager's office. Section 2: Exceptions The City shall consider investor owned multifamily and multistory residential structures as part of a planned integrated development for a strategic purpose meeting Commission goals. This may include, but is not limited to, senior living complexes, targeted income markets, special needs housing, and upper story residential as permitted under the Rural Housing Incentive District. H. Proposals and Pre -Qualifying Assessment Proposals for City assistance in the creation of residential subdivisions/buildings shall submit a proposal to the City Manager's office. Proposals shall be based on an identified community need at the time of application, such as those defined in the August 2020 housing study or other adopted City Commission goals or policies. Proposals shall include the following information: 1. The names of the business entity and its primary owners/partners seeking city assistance. 2. The location of the development on a map which clearly outlines the parcel to be developed 3. The number of building lots to be created. 4. The type of housing units or mixture thereof to be included in the development. 5. The estimated market cost of housing units to be constructed. 6. A third -party analysis including the financial feasibility of the project in retiring the RHID debt and the projected construction pace of development. All housing types noted under Section I (1): Allowable Housing Types shall include a lot absorption schedule as part of the third -party analysis. For developments with a target market price below $250,000 per home, the minimum lot absorption schedule shall be the completion of fifty percent (50%) in the first three (3) years of the project. For developments with a target market price over $250,000 per home, the minimum lot absorption schedule shall be the completion of fifty percent (50%) in the first five (5) years of the project. 7. A covenant guaranteeing no additional lot splits must be submitted prior to the passage of the ordinance granting RHID status. 8. All proposals shall be accompanied by a $1,000 non-refundable evaluation fee. If the proposal is approved by the City Commission and a development agreement is executed that involves periodic payments or reimbursements from the City, there shall be a 3% administrative fee attached to all transactions. 9. All City assistance regarding infrastructure shall utilize the City's public bidding process. Plans and specs for infrastructure improvements must be consistent with adopted City policies and ordinances. (� M. Phasing and Development Agreements The City and the developer shall enter into a negotiated Development Agreement which shall contain, but not be limited to, the following elements: 1. Projected target prices for the residential units to be constructed. 2. Phasing of development in terms of the number of units to be completed each year and a projected buildout year. 3. A claw -back provision related to any City assistance, if provided, based on agreed upon goals regarding unit completions that are not met. Claw -back provisions are to be negotiated on a project -by -project basis. 4. The City reserves the right to decline the establishment of a district if the target pricing does not meet a recognized need in the community as identified and adopted by the City Commission. 5. The financing method shall be clearly defined in accordance with approved City alternatives as outlined in Section V. 6. If RHID bonds, as authorized by Kansas Statutes, are to be utilized, the applicant shall work with a bond attorney selected by the City of Emporia for the issuance of said bonds. 7. A development guaranty of twenty five percent (25%) of the total public infrastructure costs shall be required of the applicant before the city proceeds to issue public financing under the 6A special assessment/RI-1D alternative. This amount shall be refunded to the developer once thirty- five percent (35%) of the lots contain a completed residential structure and a Certificate of Occupancy is issued by the City Building Inspection Department. 8. The City shall require three (3) years of special assessment obligations to be accumulated before reimbursing a developer and/or builder for eligible expenses incurred under the 6A special assessment alternative/ RNID alternative. 9. Special assessment utilizing the 6A/RHD alternative shall be calculated and assigned to each lot in an approved subdivision. It shall be the developer's responsibility to inform the buyer of a lot of this assessment and the method they will be administered. IV. Land/Location The developer/builder shall be solely responsible for the purchase of the land to be designated as an RHID district. Proposed districts shall be located adjacent or within 200 feet of an existing city street or paved street for consideration. For land outside of the existing City limits a petition for annexation consistent with Kansas Statutes shall be made concurrent with the request for the establishment of an RNID. Reclamation of floodplain zones as designated by federal programs is not allowed as a RHID 1 eligible expense. Section 1: Location All area included within the incorporated city limits as defined by ordinance are eligible for RHID designation after being approved by the Kansas Department of Commerce (KDOC). Existing RNID eligible areas, as approved by KDOC, are attached as Exhibit A. Designation of an area presently not within the corporate boundaries of the community cannot be declared an RHID district by the city until annexation is completed. Applicants should set aside an additional 3-6 months in their planning timeline to accommodate this situation. V. FINANCIAL ALTERNATIVES The following is a nonexclusive listing of some financial alternative available to the City regarding RHID developments and related scenarios to assist in addressing the need for new housing units. 1. Utilize existing policy requiring private financing for all RHID development requests. 2. Issue RHID bonds as permitted under the Kansas Rural Housing Incentive District Statutes in conjunction with local financial institutions. 3. Utilize, Kansas Statute 12-6a0I-17 to establish a special assessment district and create a Rural Housing incentive District (RI -11D). The incremental tax revenue received via the RHID would then be utilized for debt retirement for bonds issued in conjunction with a Cdevelopment, reimburse the city account used to fund the initial construction and reimburse developer/builder eligible expenses. 4. 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FC � .:: iS ,i a' it WWI ..a* 0 I il Irk lJ 'k w j .J C 1-4 TOTAL POTENTIAL INCOME I I 1 1 $2,497,560 1 $208,130 1504 1644 1108 1148 2648 3008 2216 2296 2648 1140 3008 2216 2648 27232 RENT SCHEDULE 0 Per l'On" $76,800 Studio 2.0 1 12.00__L 6.00 7.14% 28 Unit Building 54,D00 48.00 42.00 FLOOR PLAN NT UNIT TYPE H STABALIZED ANNUAL RENT STABALIZED MONTHLY RENT SF PRICE PER SQUARE FOOT B Und 1BD11BATH '_E.CC 42$1,65C 521,480 S1.79C 7E2 S1-19 B2 Unit (w/DA Garage) 18011BATH $D 526,400 SZ200 822 51.34 E Und 2BD12BATH5 $15.640 51.295 1,108 51.17 D Und 2BD2BATH0 $16.2DC 51350 1.148 51.18 F UnL ?BD2BATHC S39.60C S93CC 132< 512E 0 Una 18C,18ATH 4 $650 f 540,800 tog S3,400 752 51.1' E Unit 2BD2BATH 2 51,250 $30,000 S2,50D 1,108 $1.13 D Und 2BD2BATH 2 $1295 $31,080 52,590 1,148 57.13 F Unk 3BDQBATH 2 51595 S3B.280 53,190 1,324 S120 A Und StUdID 2 5725 517,400 DON $1,450 :.. - 570 $127 B Und jW BATH 4 $850 $40,800 S3,400 752 51.13 E Und 2BD2BATH 2 51,250 530,000 $2,500 1,108 51.13 F Und 3BD2BATH 2 $1,595 $38,280 $3,190 1,324 5720 TOTALS PER BUILDING 28.0 5385,860 $32.155 1 AVG $7.19 28 UNIT BLDG. TOTALS 166 6 32.316,160 5182,9]0 TOTAL POTENTIAL INCOME I I 1 1 $2,497,560 1 $208,130 1504 1644 1108 1148 2648 3008 2216 2296 2648 1140 3008 2216 2648 27232 56,400 0 Per l'On" $76,800 Studio 2.0 1 12.00__L 6.00 7.14% IBD/1BATH8.0 54,D00 48.00 42.00 28.57% 2BD26ATH 12.0 72 CC 66.00 42.86% 3BD2BATH E.0 '_E.CC 9.CC 21.43% TOTAL POTENTIAL INCOME I I 1 1 $2,497,560 1 $208,130 1504 1644 1108 1148 2648 3008 2216 2296 2648 1140 3008 2216 2648 27232 56,400 0 Per l'On" $76,800 Attached Garage' Detached Gemce $75 Per lAonth 557,600 54,800 App Fees, Pet Fees, Etc. $48,000 54,D00 OTHER INCOME TOTALS S182A00 515.200 TOTAL POTENTIAL INCOME I I 1 1 $2,497,560 1 $208,130 1504 1644 1108 1148 2648 3008 2216 2296 2648 1140 3008 2216 2648 27232 Develooment Costs Land I I 5850,000 I $5,059.52 GMAX Hard Construction Cost $19,320,DD0 511E.000 Construction Loan 75% 16,366.275 $97.418.30 Architectural and Engineering Fees Hrchdect Fee - Design $168,0D0 S1,DDC Architect Fee - Supervision s0 so Engineering Fees S50,0D0 5298 Contingency Developer- Construction Contingency 5336,000 $2.000 soft cost Market Study 54,000 $23.81 Appraisal $4,500 $26.79 Accounting & Legal $25,ODD $148.81 Third Party Reports $10,000 $59.52 Title PDlicy 53,200 $19.05 Surveylresting $10,000 $59.52 Building Permits S20,DDD $119.05 Builder's Risk Insurance 525.000 5148.81 Mar- Devdopmeat Cost Clubhouse - Furndure. Computers. Etc. $100.0D0 50 Operating Reserve, -Startup 590.000 $298 klarketing;'Leasing Expense $50.000 $296 Construction Financing Construction Interest Carry $420,000 $2.500 Construction Lcan Points S35,DDD S2DD.00 Closing Costs $5.000 $29.76 Impact Fees'Prcperty Taxes s0 SC Developer's Fees s Overhead 5336,000 $2,000 TOTALI 1 21,821.780 1 129,891 Equity Requirment 25`x: 5,455.425 $32,472.77 Construction Loan 75% 16,366.275 $97.418.30 TOTAL POTENTIAL INCOME I I 1 1 $2,491,500 $208,130 1504 1644 1108 1148 2648 3008 2216 2296 2648 1140 3008 2216 2648 27232 RENT SCHEDULE Studio 2.0 12.00 6.DO 28 Unit Building 160/1 BATH 8.0 48.00 FLOOR PLAN NET PER UNIT TYPE # OF UNITS MONTH STABALIZEO ANNUAL RENT STABALIZEO MONTHLY RENT SF p50UARE FOOT 1 as Floor 8 Unit 1BD11BATH 2 559` $21.480 $1,790 7E2 $1.19 62 Unl (wl DA Garage) 1BDIISATH 2 51.100 526,400 $2,200 822 $1.34 E Unit 2BD2BATH 1 S1295 $15.540 $1295 1.106 51.17 D Unit 25DMATH 1 $1,350 $16,200 $1,350 1,148 51.18 F Unit 3BDI2BATH 2 S1.650 S39,600 53,300 1.324 51.2E B Unit IBOMBATH L 55E0 $10.800 534DD 7E2 $1.13 E Unit 2BD2BATH 2 51,250 530,000 $2,500 1,1DB 51.13 D Unit 28D28ATH 2 $1,295 $31,080 $2.590 1,148 $1.13 F Unit 3BD2BATH 2 51,595 $38.280 $3,190 1,324 $120 A Unit Studio 2 S725 $17,400 1 $1,450 570 $127 B Unit 1BDII BATH 4 5850 540,800 $3,400 752 51.13 E Unit 2BD2BATH 2 41,250 S30,00D 52,500 1,108 $1.13 FUnit 3BD2BATH 1 2 1 51,595 $38,280 $3,190 1,324 $120 TOTALS PER BUILDING 28.0 $385,860 532,166 AVG $1.19 28 UNIT BLDG. TOTALS 168 6 1 $2,315.160 $192,930 TOTAL POTENTIAL INCOME I I 1 1 $2,491,500 $208,130 1504 1644 1108 1148 2648 3008 2216 2296 2648 1140 3008 2216 2648 27232 28 UN Total Studio 2.0 12.00 6.DO 7.14% 160/1 BATH 8.0 48.00 4200 28.57% 2BD2BATH 12.0 7200. 66.00 42.86% 3BMSATH t c 36.00 9.00 21.43% TOTAL POTENTIAL INCOME I I 1 1 $2,491,500 $208,130 1504 1644 1108 1148 2648 3008 2216 2296 2648 1140 3008 2216 2648 27232 Potential Unit Mix and Number of Beds Unit Count/Mix 28 Unit Buildings Unit Type Per Bldg 6 Bldgs Beds % Studio 2 12 12 7.14% 1BED/1BATH 8 48 48 28.57% 2BED/2BATH 12 72 144 42.86% 3BED/2BATH 6 36 108 21.43% Totals 28 168 312 100.00% COMMUNITY SUPPORT FOR COMPARABLE PROJECTS The Enclave at Dry Creek • Located in Cedar Rapids, IA. Population 133,174 (MSA of 279,861) • 178 Units in 6 Buildings with a Clubhouse • Rents from $815 and $1440 (Generally average $1.00 to $1.20 PSF) • Studio Units: 12 • 1 Bed Units: 88 • 2 Bed Units: 72 • 3 Bed Units: 6 • 262 Beds • $6,675,000 Capital Investment • Built from 2018 to 2019 • Incentives: 10 -year 100% Property Tax Abatement with an estimated value of $4,000,000 to $5,000,000 over 10 years. The Summit at Sunnybrook — Phase I & Phase II (Summit Ridge) • Located in Sioux City, IA. Population 82,396 (MSA of 182,608) • Phase I: 225 Units in 7 Buildings with a Clubhouse • Phase II: 73 Units in 1 (One) Building with Integrated Clubhouse • Total of 298 Units • Rents from $815 and $1440 (Generally Average $1.00 to $1.20 PSF) • Studio Units: 40 • 1 Bed Units: 130 • 2 Bed Units: 110 • 3 Bed Units: 18 • 444 Beds • $11,175,000 Capital Investment • Phase I: Built 2016 to 2017. Phase II: Built 2019 to 2020 • Phase I Incentives: 10 -year Property Tax Abatement with an estimated value of $3,500,000 over 10 years for Phase I. • Phase I Incentive: State of Iowa Workforce Housing Tax Incentive Program & Sales Tax Refunds with an estimated value of $2,200,000 • Phase II Incentive: 10 -year Property Tax Abatement with an estimated value of $2,000,000 over 10 years. COMMUNITY SUPPORT FOR COMPARABLE PROJECTS The Reserves at City's Edge • Located in Davenport, IA. Population of the Quad Cities is 382,268 • 196 Units in 7 Buildings with a Clubhouse • Rents from $815 and $1440 (Generally Average $1.00 to $1.20 PSF) • Studio Units: 14 • 1 Bed Units: 95 • 2 Bed Units: 80 • 3 Bed Units: 7 • 290 Beds • $7,350,000 Capital Investment • Built from 2019 to Still Under Construction • Incentives: 10 -year 100% Property Tax Abatement with an estimated value of $4,000,000 over 10 years. The Railyard at Rim Rock • Located in Grand Junction, Colorado. Population 63,374 (MSA of 116,255) • 196 Units in 7 Buildings with a Clubhouse • Rents from $815 and $1440 (Generally Average $1.00 to $1.20 PSF) • Studio Units: 14 • 1 Bed Units: 95 • 2 Bed Units: 80 • 3 Bed Units: 7 • 290 Beds • $7,595,000 Capital Investment • Currently Starting Construction. • Incentives: Located in a Federally Recognized Opportunity Zone. Local Incentives are TBD. 1� Lw LL W C U c c O U a n v Z o k t v a V C v � O Y u H v > O v Q L ZY n H D f0 m m E Z N O V op N G n r Z d O 4 N Z q jn' D ca N ucia N �o - Y � V •u m � UI Y p n r C C �• 6 � m - Y jy C Y m pp C M b3 �•va n a ° 5 00 Q u O LL E A E 2 nT u z z N ~ � c Y m n n N? 0 0 00 ry� u N O CO ° m Y O n m c F co N w Z a y N 0> C i m i m a`+ C Y E E > E > N E > O '� .` C 7 Z Z Z Z Z Z Z % W 3 c `m c a r E r E 0 E 0 E o e .c O t> 3$ o 6 W 6 W G W 6 W r 3 N O L a Y m ® c N v 7 n z - `u m m n O T Q m C m l > 3 O °n v o '9N o e 0 7 u m v � a s A c E s E e O EE O C®« x O Z {7 1O Vn V n E *' O LL 4 - H H - 10 p «O n• m v Z c N a ` Y V a t � m A c p n 0m � 4 0 G o O ® d n z v Y co c Y ap Y o Y u E O O 3 N d m •'8 z Cf ® l�0 (n -1. O �. Z g O t 3� C •q pOp m0 V> W ?? d n Y v n a o m Q c G z 3 m N n [p H m N N Y c E a 01 2 v r c E r m N E L p m C .O A C D d .L•' 3 Z 4 Q O Z¢ m Z Q O. z n 3 N 3 3 a n o k t v a V C O Y u H Q H f0 a m N O V op N G r O L^' N ca ucia �o - Y n r C C �• - Y jy C Y m pp C M b3 �•va � ° 5 00 u E A E 2 nT u z z N ~ � c Y N? 0 0 00 ry� u N m c F O y N 0> C m Ego C Y E N E f� a O 3$ o Q COO m M N v 7 n m m n O T Q m C m l o '9N o e 0 7 y a s A c E s E O EE O C®« x O Z {7 O z" V C E *' O LL - H H - 10 , , a { B at? k/ � i; #� ©, z �« r� � �f }\(LL 5 �_ ) 2{2kk| )3 '|eq I§§( ƒ|()#� /§ | - iCU \\ - 0 f2 011 2§ \ \ LU � ■%} ' m \!2 % LU _ a � �» \) §L) .0B _ }! ; )o § }\k«�k§ E 7 k ) (\ k§ }k k \ k k CP r LO fA 69 \ : § �} kk; 2k)\( X: F- ev§Iƒ | 7J0 £!!ki 5 3 \\;� , { B at? k/ � #� ©, �« r� � �f }\(LL 5 slf53ƒ 2{2kk| ƒ|()#� \\ 0 f2 011 \ \ LU � ■%} ' m \!2 % LU , Schilling Rd 1 inch = 400 feet Ryan Addition Subiect Area d Rittprs Ln .,- Ryan Addition r Ln R J —1- teen Ln - 4 c staff PI rY _ 4., Subject Area Schilling Rd Founan r �G 11 d Y o Na rDr L L Nautical Dr 1c a f. I d, ---------------------------------- �Et Y 1 inch = 400 feet Ln R-1 anie Ln Ln PC -2 PC -2 R-1 Ryan Addition �— R PC -5 1 I PC -5 1 Schilling Rd PC -5 1-2 1 inch = 400 feet Ryan Addition For Sale Project Costs Per Unit: Vertical Construction Soft Cost Landscape/Fence/Dog Park Contingency Brokerage/Sale Cost Finance/Loan Fee Lot Infrastructure Cost Lot Cost Unit Sale Cost Local Incentives $ $ $ $ $ $34,000 $ $ I $ 3,465 $ 5,250 $ 13,650 $ 4,110 $ $ 8,925 $ $ $ _ _ Total 14,697,000 291,060 567,000 1,339,455 341,250 2,550,000 749,730 20,607,000 _ Salina --- Ryan Addition Number of Homes Sale Price Total Sales Revenue Unit Development Expense 75 $ $ 20,607,000 _ Unit Construction Cost _ Brokerage/Sale Cost/Finance Lot Infrastructure Cost Lot Cost Total Per Unit Expense Profit Per Unit - - $ 1,024 Total Unit Profit $ 71,505 Other Incentives $ Total Project Profit $ 71,505 Sales Cost/Brokerage 6.50% Vertical Construction Increase Per Phase TH Vertical Construction Increase Per Phase SF $ 4,000 Sales Price Increase TH $ 4,000 $ 2,500 Sales Price Increase SF $2,500 4/29/2021 Ryan Addition Financial Analysis 3 041321 Salina Ryan Addition 75 SF/TH Lots EXPENSE Land FOOTAGEESTIMATED 25 I _ $ 30,000 $ 750,000 Infrastructure Hard Cost Per Lot $ 34,000 $ 2,550,000 Engineering/Planning $ 45,000 SUBTOTAL: $ 3,345,000 255,000 $ 3,600,000 Contingency on hard cost TOTAL: Additional Eligible Expenses $ - Excise Tax RE Taxes/Assessments $ 7,500 Insurance $ 22,000 Construction Interest $ 75,000 Interest- Prior to Rev Stream $ 200,000 Legal(RHID) $ 10,000 _ Legal $ 5,000 Accounting $ 2,400 Project Management/Dev $ 200,000 $ 291,900.00 Additional Expenses Total $ 521,900 Total: $ 4,121,900 Grants or Contributions $ Total less Grant Contribution $ 4,121,900 Lot Sale Cost Less Sale Cost Net Lot Revenue Total Total $ Cost less Grant vs Lot Revenue Cost Percentage 3% $ 4,121,900 Total Lots 75 Lot Type A - Single Family 42 Lot Type B - Town Home 33 Lot Type C 0 South View Lot Development Expense 2 040621 Purchase Price Down Payment Mortgage Int Rate PMI Percent Insurance Taxes Special Assessment + Finance/Etc Special Interest Rate Total Builder Cost Builder Profit Special Assesment Town Home Per Single Family Side $ 210,000 $ 175,000 5% 5% 3% 3% 0.5% 0.5% $ 150 $ 140 $ 255 $ 220 $ 39,000 $ 19,500 2.00% 2.00% $ 209,150 $ 174,315 15% 15% Special Assessment Total Builder Cost $ 209,150 $ 174,315 Less Special Assessment/Infrastructure $ 175,150 $ 157,315 Builder Profit $ 26,273 $ 23,597 Total Sale Cost $ 201,423 $ 180,912 Purchase Price $ 201,423 $ 180,912 Down Payment $ 10,071 $ 9,046 Total Loan $ 191,351 $ 171,867 (Monthly) Mortgage Payment $807 $725 PMI $80 $72 Insurance $150 $140 Taxes $255 $220 Special Assessment Expense $251 $125 Total Payment $1,542 $1,282 Yearly $18,509 $15,380 Delta Incentive vs Special $213 $152 Yearly Difference $2,559 $1,818 Cost W/O Incentive/Special $240,523 $200,462 With Incentive Builder Incentive Town Home Per $ 210,000 $ 175,000 Single Family $ 10,500 Side Purchase Price $ 210,000 $ 175,000 Down Payment Mortgage Payment 5% $701 5% Mortgage Int Rate $69 3% $150 3% PMI Percent $255 0.5% Total Payment 0.5% Insurance $ 150 $ 140 Taxes $ 255 $ 220 Special Assessment/Infrastructure Cost $ 34,000 $ 17,000 Special Interest Rate 2.00% 2.00% Total Builder Cost $ 209,150 $ 174,315 Builder Profit 15% 15% Builder Incentive Purchase Price $ 210,000 $ 175,000 Down Payment $ 10,500 $ 8,750 Total Loan $ 199,500 $ 166,250 (Monthly) Mortgage Payment $841 $701 PMI $83 $69 Insurance $150 $140 Taxes $255 $220 Total Payment $1,329 $1,130 Yearly $15,951 $13,562 (Published in the Salina Journal on the day of May, 202 1) RESOLUTION NUMBER 21-7954 A RESOLUTION MAKING CERTAIN FINDINGS AND DETERMINATIONS AS TO THE NEED FOR THE HOUSING WITHIN THE CITY OF SALINA, KANSAS AND SETTING FORTH THE LEGAL DESCRIPTION OF REAL PROPERTY PROPOSED TO BE DESIGNATED AS A RURAL HOUSING INCENTIVE DISTRICT WITHIN THE CITY. A4 WHEREAS, K.S.A. 12-5241 et seq. (the "Act") authorizes any city incorporated in accordance with the laws of the State of Kansas (the "State") with a population of less than 60,000 located in a county with a population of less than 80,000, to designate rural housing incentive districts within such city; and WHEREAS, prior to such designation the governing body Vsuch city shall c ct a housing needs analysis to determine what, if any', housing nee" exist within its munity; and WHEREAS, after conducting such analysis, the governing body of such city may adopt a resolution making certain findings regarding the establishment of a rural housing incentive district and providing the legal description of property to be contained therein; and i WHEREAS, after publishing such resolution, the governing body of such city shall send a copy thereof to the Secretary of Commerce of the State (the "Secretary") requesting that the Secretary agree with the finding contained in such resolution; and WHEREAS, if the Secretary agrees with su fi dings, such city may proceed with the establishmenof a rural hou$ing incentive dis within such city and adopt a plan for the development or redevelopment of housing and blic facilities in the proposed district; and WHEREAS, the City of Salina, Kansas (the "City") has an estimated population of 47,707 (20 10) is located in Saline, County, Kansas which has a population of 55,606 (2010) and therefore constitutes a city as s#id term is defined in this act; and WHEREAS, the Governing Body of the City has performed a Housing Needs Analysis (Live Salina Housing Assessment and Strategic Plan) dated January 25, 2016 (the "Needs Analysis"), a copy of which is on file in the office of the City Clerk; and WHEREAS, based on the Needs Analysis, the Governing Body of the City proposes to commence proceedings necessary to create a Rural Housing Incentive District, in accordance with the provisions of the Act. SO NOW, THEREFORE BE IT RESOLVED by the Governing Body of the City of Salina, Kansas, as follows: Section 1. The Governing Body has previously adopted and incorporated by reference as part of this Resolution the Needs Analysis, a copy of which is on file in the office of the City Clerk, and based on a review of said Needs Analysis makes the following findings and determinations. Section 2. The Governing Body hereby finds and determines that there is a shortage of quality housing of various price ranges in the City despite the best efforts of public and private housing developers. Section 3. The Governing Body hereby finds and determines that the shortage of quality housing can be expected to persist and that additional financial incentives are necessary in order to encourage the private sector to construct or renovate housing in the City. Section 4. The Governing Body hereby finds and determines that the shortage of quality housing is a substantial deterrent to future economic growth and development in the City. Section 5. The Governing Body hereby finds and determines that the future economic wellbeing of the City depends on the Governing Body providing additional incentives for the construction or renovation of quality housing in the City. Section 6. Based on the findings and determinations contained in Sectiot7s 2 through 5 of this Resolution, the Governing Body proposed to establish a Rural Housing Incentive District pursuant to the Act, within boundaries of the real estate legally described and depicted int map in Exhibits "A-]" and "A-2" attached hereto. _ Section 7. This Resolution shall take effect after its `an and publication once in the official City newspaper. Kansas, this 3'd day of May, Ages, Mayor Exhibit "A-1" Legal Description A tract of land located in Lot 1, Block 1, Magnolia Commons Addition to the City of Salina, Saline County, Kansas, described as follows: Beginning at the Southwest corner of said Lot 1, thence on an assumed bearing N,00 West line of said Lot 1, a distance of 455.54 feet; Thence N 89° 54' 57" E a distance of 194.70 feet; Thence S 00° 05'03" E a distance of 455.54 feet to a point on the South ' of sai Thence S 89° 54'57" W, along the South line of said Lot 1, a distance f 1 .70 feet Said tract contains: 465,518.342 square feet or 10.684 acres, more 053" W, along the of beginning. (Published in the Salina Journal on the day of May, 202 1) RESOLUTION NO. 21-7955 A RESOLUTION MAKING CERTAIN FINDINGS AND DETERMINATIONS AS TO THE NEED FOR THE HOUSING WITHIN THE CITY OF SALINA, KANSAS AND SETTING FORTH THE LEGAL DESCRIPTION OF REAL PROPERTY PROPOSED TO BE DESIGNATED AS A RURAL HOUSING INCENTIVE DISTRICT WITHIN THE CITY. WHEREAS, K.S.A. 12-5241 et seq. (the "Act") authorizes any city incorporated in accordance with the laws of the State of Kansas (the "State").with a population of less than 60,000 located in a county with a population of less than 80,000, to designate rural housing incentive districts within such city; and WHEREAS, prior to such designation the governing body of such city shall conduct a housing needs analysis to determine what, if any, housing needs exist within its community; and WHEREAS, after conducting such analysis, the governing body of such city may adopt a resolution making certain findings regarding the establishment of a rural housing incentive district and providing the legal description of property to be contained therein; and WHEREAS, after publishing such resolution, the governing body of such city shall send a copy thereof to the Secretary of Commerce of the State (the "Secretary") requesting that the Secretary agree with the finding contained in such resolution; and WHEREAS, if the Secretary agrees with such findings, such city may proceed with the establishment of a rural housing incentive district within such city and adopt a plan for the development or redevelopment of housing and public facilities in the proposed district; and WHEREAS, the City of Salina, Kansas (the "City") has an estimated population of 47,707 (2010) is located in Saline County, Kansas which has a population of 55,606 (2010) and therefore constitutes a city as said term is defined in this act; and WHEREAS, the Governing Body of the City has performed a Housing Needs Analysis (Live Salina Housing Assessment and Strategic Plan dated January 25, 2016 (the "Needs Analysis"), a copy of which is on file in the office of the City Clerk; and WHEREAS, based on the Needs Analysis, the Governing Body of the City proposes to commence proceedings necessary to create a Rural Housing Incentive District, in accordance with the provisions of the Act. SO NOW THEREFORE, BE IT RESOLVED by the Governing Body of the City of Salina, Kansas, as follows: Section 1. The Governing Body has previously adopted and incorporated by reference as part of this Resolution the Needs Analysis, a copy of which is on file in the office of the City Clerk, and based on a review of said Needs Analysis makes the following findings and determinations. Section 2. The Governing Body hereby finds and determines that there is a shortage of quality housing of various price ranges in the City despite the best efforts of public and private housing developers. Section 3. The Governing Body hereby finds and determines that the shortage of quality housing can be expected to persist and that additional financial incentives are necessary in order to encourage the private sector to construct or renovate housing in the City. Section 4. The Governing Body hereby finds and determines that the shortage of quality housing is a substantial deterrent to future economic growth and development in the City. Section 5. The Governing Body hereby finds and determines that the future economic wellbeing of the City depends on the Governing Body providing additional incentives for the construction or renovation of quality housing in the City. Section 6. Based on the findings and determinations contained in Sections 2 through 5 of this Resolution, the Governing Body proposed to establish a Rural Housing Incentive District,pursuant to the Act, within boundaries of the real estate legally described and depicted in the map in Exhibits "A-1" and "A-2" attached hereto. Section 7. This Resolution shall take effect after its adoption and publication once in the official City newspaper. APPROVED AND PASSED by the Governing Body of the City of Salina, Kansas, this 3rd day of May, 2021. Melissa Rose Hodges, Mayor ATTEST: Exhibit "A-1" Legal Description Lots 1 through 26, Block 2, Lots 1-10, Block 3, Lots 1 through 26, Block 4, and Lots 1 through 13, Block 5, in the Ryan Addition to the City of Salina, Saline County, Kansas. Exhibit "A-2" RHID Map