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Commission adopts reinvestment housing incentive for San Sage Square Phase 1, clearing path for 48 rental units

5926672 · September 17, 2025
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Summary

The commission approved an ordinance establishing a Reinvestment Housing Incentive District (RHID) for San Sage Square Phase 1, authorizing reimbursement of up to $3,204,176 in eligible property tax increments over a district life of up to 22 years for construction of 48 rental units.

The Garden City City Commission on Sept. 16 adopted an ordinance to create a Reinvestment Housing Incentive District (RHID) for San Sage Square Phase 1, a 48‑unit multifamily project at 1801 Palace Drive.

Staff told the commission the development plan covers four buildings with 12 dwelling units each (48 units total). Dennis Johnson, representing Garden City Partners 1 LLC, told the commission the developer expects to start construction by the end of September or in October and anticipates an approximately 12‑ to 18‑month build, with certificates of occupancy phased as buildings complete.

The nut graf: the RHID will allow the city to reimburse eligible property tax increments to the developer over the RHID term — up to 22 years — with the total reimbursement capped at $3,204,176 (the transcript lists $3,204,176 as the eligible reimbursement cap). The governing body’s action begins the statutorily required review period that gives the Board of County Commissioners and Unified School District 457 30 days to evaluate whether the RHID would adversely affect them; if either taxing entity adopts a resolution asserting an adverse effect, the city must repeal the ordinance per state statute.

City staff said the RHID application materials and development plan were available for public inspection beginning Aug. 5 and that the planning commission recommended approval at its Aug. 20 meeting. During the public hearing, developer Dennis Johnson said the project will provide new housing to meet local demand and that he hoped to break ground quickly.

The commission voted to approve Ordinance No. 3020-2025. Staff noted the city’s community housing assessment team (CHAT) had identified a local housing need (the packet cited a requirement of 1,395 units between 2025 and 2030 and a city goal of 4,000 units by 2030) and that Garden City had completed 322 RHID units from 2020–2024. The ordinance’s effective implementation depends on the 30‑day review by taxing jurisdictions described above.