The Manhattan City Commission meeting on December 17, 2024, was marked by intense discussions surrounding a proposed development project that has sparked significant debate among city officials and community members. Central to the conversation was the question of whether to subsidize a mixed-use building project led by Commerce Bank and Hutton, with concerns raised about the project's alignment with the community's need for workforce housing.

Commissioners expressed skepticism about the necessity of providing financial incentives for the project, particularly given the assertion that it would not contribute to the creation of workforce housing. One commissioner highlighted the disparity between the community's need for affordable housing and the luxury housing being proposed, questioning why taxpayer dollars should support a project that does not serve the broader community's needs.

In response, other commissioners defended the project, emphasizing its potential economic benefits. They pointed out that the proposed investment of $15 million would generate property tax revenue after a ten-year abatement period and would also contribute to immediate sales tax income from retail spaces included in the development. The discussion underscored the complexities of urban development, with some officials arguing that without the incentives, the project might not proceed, potentially leaving the area with an underutilized property.

Support for the project was voiced by Jason Smith, president of the Manhattan Area Chamber of Commerce, who reiterated the importance of infill development over urban sprawl. He noted the long-term financial benefits of such projects, including reduced costs for public services and infrastructure. Smith also praised the performance-based incentives proposed by city staff, which would ensure that no tax breaks are granted until the project meets specific performance criteria.

Community members raised questions about the necessity of subsidies, suggesting that the developers could proceed without public funding. They called for transparency regarding whether Commerce Bank and Hutton have received similar tax breaks in other locations, questioning the validity of the developers' claims about the project's feasibility without city support.

As the meeting concluded, commissioners acknowledged the need for further deliberation and public input before making a final decision. The discussions highlighted the ongoing challenge of balancing economic development with the community's housing needs, setting the stage for continued debate in future meetings.