September 2, 2014

Council lends its support to developer’s tax credit application

Danedri Thompson
dthompson@gardnernews.com

Council members lent their support to a developer seeking tax credits to build a low-income apartment complex in Gardner.
Overland Property Group submitted an application to the Kansas Department of Housing in August for tax credits to build up to 48 units in three apartment buildings in Gardner’s Waverly Pointe subdivision in August.

Brett Johnson, a representative of the property company, told council members their resolution of support for the project would be submitted to the state to supplement their application for the tax credits.

“(The resolution) allows us to continue applying, but it doesn’t guarantee we’ll be approved by the state,” Johnson said.

The resolution also doesn’t guarantee that a necessary revision to the Waverly Pointe preliminary development would be approved by the council or by the planning commission.

Under a plan approved in 2007, the property, located approximately one-eighth of a mile from north of 175th Street on Waverly Road, has preliminary approval for 158 townhouses in 32 buildings. The approximately nine acres being considered for the apartment buildings would house approximately 96 townhomes under the preliminary plan.

If granted tax credits from the state, Overland Property Group would like to build up to 48 low-income apartment units in three buildings instead. The proposal would also include a clubhouse.

Although only seeking approval for up to 48 units, Johnson said the first phase of development would likely only include 32 units in two buildings.

However, Johnson said his organization would like the option to build another 16 without repeating the process.
In the future, Johnson said Overland Property Group developers see potential for up to 80 apartment units on the site.

“As far as traffic impacts, it will certainly not be more than what’s already planned,” he said.

Overland Property Group is competing with 18 other developers for the state’s affordable housing tax credits. The state will announce tax credit winners in December. Johnson said if they are awarded the credits, construction could start on the site as early as March. He estimated construction would take up to eight months, and he expected to have the buildings fully leased within eleven months of the construction start.

“Our demand study showed very strong demand in Gardner,” Johnson told the council.

There is a lack of affordable housing in Gardner when we average out rent costs in town, he said.

The average rent in Gardner is $978 per month. With the tax credits, Johnson said the new apartment units could offer rents between $550 and $600 for a three-bedroom, two-bath apartment. Tenants would have to meet certain income requirements.

Overland Property Group only has an option on the property in Waverly Pointe. If they fail to earn the tax credits, Johnson said they could re-apply for tax credits a second time next year.

“Or it’s possible we would let our options expire,” he said.

Comments

  1. Just what Gardner needs – low income housing (the total number changing daily) with the developer getting tax credits resulting in loss of tax revenue to the citizens. Of course, our Council would go along with this sweet deal – meets all the requirements of cronyism government brought to you via worthless politicians and creating more social costs for the responsible middle class to pay for. We already have the Moonlight Apartments which haven’t paid their 2009 property taxes of $188,510 and so many of their renters showing up on the Sheriff’s Booking report for the jail. I hope everyone has their vision glasses all polished up so you can see what you have ahead of you – a railyard, warehouses, millions of trucks, expensive costs for crime and infrastrucure, social and medical costs up the gut, truck routes thru residential areas and a hellhole to live in. Thanks again City Hall and all of the worthless politicians for bringing the “new day” to Gardner……………..

  2. No No No………Stop. This is sad, why do you want to ruin this community??? So many folks have invested their dream in this community. What are you thinking!

  3. The Patriot says:

    In today’s economy there is a crying need for low income housing. Especially since there are so many recently unemployed. I do not think painting all low income persons and renters with a false broad brush is honest. There are plenty low paying jobs in Gardner (even before Wal-Mart). Where are these people expected to live?

  4. I’m not sure I’m against the housing but why does the builder need tax credits? It doesn’t seem right to be giving tax credits away. We need projects that pay taxes these days.

  5. Once again I urge all citizens to review https://ovpgrp.box.net/shared/zssua9ukec in detail and I don’t know how you cannot see that developers and rich investors and worthless politicians who enable them are financially raping the people. Please note on an Olathe project involving this developer that the city of Olathe went even further and gave these jaybirds a 100% TAX INCENTIVE for around 10 years or more resulting in the loss of even more tax revenue.

    Your Kansas Secretary of Revenue has told citizens time and time again that we have money problems because we have given all of the tax revenue away to big biz, developers and special interests – that is what got you that lovely increase in your sales tax eff. 7-1-10, mill levy increases for the coming years, increases in fees, utilities and on and on. How much can citizens afford? Your middle class is being put out of busineess with each day that passes and they will soon be among the poor.

    I don’t mind helping those who are suffering but it really gets in my crawl to be stuffing more money into the pockets of these developers, big biz and other special interests while Joe Blow has to take a 2nd or 3rd jobs to take care of these jaybirds (with higher taxes) who don’t give a hoot about the poor, the disabled, the mentally ill, etc.

    I have reports from the Kansas Dept. of Revenue dated a couple of years ago (secured with the help of a Senator out in western Kansas – my own Johnson County senators and representatives and County Commissioners would not even help me get those reports – they didn’t answer my e-mails for help on this) show how the citizens would lose over $1 BILLION in 10 years in tax revenue just due to TIFs and the sweet tax deals associated with IRBs – that doesn’t even include all of the other straight handouts, tax credits, tax incentives, tax abatements, tax refunds, elimination of business taxes, Star Bonds, diversion of sales taxes to pay for the wants of the big boys and on an on.

    It is my understanding Gardner has around 500 low income housing units going in right now on 188th St. off Center St. and now more on Waverly. I think all citizens better be thinking long and hard about what their city is quickly turning into and about worthless politicians and planning commission who put the stamp of approval on a project that they don’t even know as to how many low-income units are involved.

    I guess when the worthless politicians have sucked all the money they can out of me, then I, too, will have to sign up for low-income housing and will be patting a developer on the rearend (with his greenbacks spilling out of his back pockets) for getting that thru.

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