In a recent government meeting, city officials discussed a significant redevelopment project aimed at revitalizing the Sun Valley Apartments in Wichita Falls. The proposal, presented by Principal Planner Karen Montgomery Gonyea and representatives from Overland Property Group (OPG) and Nortex Housing Finance Corporation, seeks approval for a resolution of no objection to facilitate a 4% state tax credit and establish a payment in lieu of taxes (PILOT) agreement.

The project, which has been in the works for five months, is designed to enhance affordable housing options in the area. The Sun Valley Apartments, built in 1972, consists of 132 units across 16 buildings and is in need of substantial renovations. The redevelopment plan includes a total investment of approximately $24 million, which translates to about $50,000 per unit. The renovations are expected to begin in September 2024, with completion anticipated by 2025.

The proposed PILOT agreement would ensure that the city receives a portion of property taxes over the next 20 years, despite the property being tax-exempt under the new ownership structure. This agreement is designed to mitigate any potential loss of tax revenue while supporting the long-term maintenance and operation of the complex.

During the meeting, OPG representatives highlighted their extensive experience in affordable housing development, noting successful projects in the region and emphasizing their commitment to creating safe, quality living environments. The redevelopment plan includes improvements such as new kitchens and bathrooms, energy-efficient appliances, enhanced security measures, and community-focused amenities like playgrounds and after-school tutoring facilities.

City officials expressed enthusiasm for the project, recognizing its potential to rejuvenate a long-standing complex and provide better living conditions for residents. The Texas Department of Community Housing Affairs will review the application for the tax credits in July, marking a critical step in moving the project forward.