City officials defend $2M housing project amid concerns over developer risks and tax incentives

During the Sedgwick County Board of Commissioners meeting on May 8, 2024, a significant discussion centered around the proposed Residential Housing Incentive District (RHID) aimed at addressing the urgent need for housing in the area. The meeting highlighted the importance of this project, which is designed to stimulate the development of Class A apartments in a rapidly growing community that currently lacks such housing options.

The proposal involves redirecting property taxes over a 25-year period rather than providing a direct cash handout to developers. This approach is intended to mitigate risks associated with developer defaults, ensuring that taxpayer dollars are safeguarded. The development agreement includes strict deadlines and conditions to protect the city’s interests, allowing for a pay-as-you-go reimbursement model instead of issuing bonds.

Commissioners expressed their concerns about the RHID process, noting that many had only recently become familiar with its implications. However, the project has received state approval and a $2 million grant from the American Rescue Plan Act, underscoring its necessity and the demonstrated need for housing in the community.

The discussion emphasized that no county or school district in Kansas has ever vetoed an RHID since its inception in 1998, indicating a strong precedent for such projects when there is a clear need. The urgency of the housing shortage was a key point, with officials urging support for the initiative to ensure sustainable growth and development in Sedgwick County.

As the meeting concluded, the commissioners were encouraged to consider the broader implications of the RHID, not only for immediate housing needs but also for the long-term economic health of the community. The board's decision on this matter will play a crucial role in shaping the future of housing in Sedgwick County.