Manhattan City Commission considers housing project with Frontier Development Group

The Manhattan City Commission convened on April 15, 2025, to discuss significant developments in housing and community planning. The primary focus of the meeting was a proposal from Frontier Development Group to construct 13 duplex buildings, totaling 26 units, aimed at providing workforce housing in the area.

The project, which has an estimated cost of nearly $9 million, seeks to offer a mix of for-sale and rental units priced between 60% and 150% of the area median income (AMI). This pricing strategy is made possible through a moderate income housing grant from the Kansas Housing Corporation, which allows for funding up to 150% AMI. The city is considering a request for just under $2 million as part of a Reinvestment Housing Incentive District (RHID) to support the project.

During the meeting, city officials highlighted the potential tax revenue generated by the project. Currently, the site generates approximately $7,000 annually in property taxes, but with the proposed improvements, this could increase to about $153,000 per year, benefiting the city with an estimated $50,000 in tax revenue.

The commission discussed the financial implications of the project, noting that the construction cost per unit is around $340,000, leading to a projected net loss of approximately $37,000 per unit. The developers are requesting $5,000 per unit from the RHID, which would amount to $130,000 annually for the 26 units over a 15-year period.

The meeting also addressed the statutory process for establishing the RHID. A resolution of intent was passed, setting the stage for a public hearing scheduled for May 20, 2025. This hearing will allow for community input and further discussion on the development plan.

Commissioners expressed the importance of collaboration with the county and school district, with suggestions for a joint meeting to discuss the project further. The school board has shown support for the initiative, which aims to fill a long-standing need for housing in the area.

Overall, the meeting underscored the city's commitment to addressing housing shortages while navigating the complexities of funding and community engagement. The next steps will involve public hearings and continued discussions with stakeholders to ensure the project's success.