Lansing residents oppose RHID proposal citing $7.6M tax revenue loss for schools

In a recent meeting of the Lansing USD 469 Board of Education, community members voiced strong concerns regarding the proposed Reinvestment Housing Incentive District (RHID). The RHID, which aims to facilitate the development of new housing, has sparked a heated debate over its potential financial implications for the school district and local taxpayers.

One of the most vocal opponents of the RHID was a resident who highlighted discrepancies in the feasibility study provided by the developer, Astra. The speaker pointed out errors in property tax calculations, suggesting that the study underestimated the financial impact on the school district. According to their analysis, the district could lose approximately $7.6 million in tax revenue over the life of the RHID, which is set to be paid off by 1942. This loss, they argued, would necessitate difficult choices for the district, including potential service reductions or tax increases for existing residents.

Scott Tenor, another community member, echoed these sentiments, emphasizing that the financial burden of the RHID would unfairly fall on current taxpayers. He warned that the district might have to choose between maintaining services and increasing taxes, ultimately disadvantaging those who do not reside within the new development.

Trina Guilford added to the discussion by expressing concerns about the influx of new students that the RHID could bring, which would further strain school resources. She noted that many taxpayers are already weary of rising taxes and are unlikely to support new school bonds, especially if they believe that tax revenues are being diverted to benefit developers rather than the schools.

Betty Kleinitz also urged the board to reject the RHID, arguing that the financial implications would lead to increased operating costs and the potential need for new school buildings. She suggested that developers should bear the costs of infrastructure rather than relying on taxpayer funds.

As the meeting progressed, the tension surrounding the RHID proposal was palpable. Community members rallied around the idea that tax revenues should directly support local schools and not be allocated to developers. With an online petition opposing the RHID gathering over 400 signatures, it is clear that many residents are united in their opposition.

The board's decision on the RHID, which is expected to be discussed further in a city meeting on April 17, 2025, will have lasting implications for the Lansing community. As residents await the outcome, the discussions at the board meeting reflect a broader concern about the balance between development and the needs of existing residents and students.