Commission creates RHID for 124 South Main to support 13 moderate‑income apartments

The El Dorado City Commission on Sept. 15 approved an ordinance establishing a Reinvestment Housing Incentive District (RHID) and approved a project plan for 124 South Main to support a redevelopment of the historic downtown building into 13 moderate‑income rental units.

City bond counsel and project counsel explained the statutory process and timeline for RHID creation, including public notice requirements and a 30‑day period during which the county and the school district may file a veto. Mitch Walter of Gilmore & Bell presented the pro forma and said the projected incremental assessed value attributable to the redevelopment would be about $45,000; the increment would be rebated to the developer under a forthcoming development agreement to reimburse eligible project costs.

Tyler Holloman of Frontier Development Group, the project developer, said the team recently received a Moderate Income Housing grant from the state and an allocation for Kansas Housing Investor Tax Credits (KHITC). He said State Historic Preservation Office and National Park Service approvals are also in place, but that the building has “skeletons coming out of the closet” that make costs challenging. The project team said they remain optimistic and hope to start construction as early as early next year.

Under the RHID steps discussed at the hearing, the city will create the district by ordinance, then negotiate and execute a development agreement specifying eligible reimbursable costs and the schedule of incremental tax capture. The county and school district will be notified, as required by statute, and will have 30 days to adopt a resolution opposing creation of the RHID.

Commissioners voted to approve the ordinance establishing the RHID and approving the project plan.