City approves IRB advisability, $250-per-unit PILOT and fee reductions for two multifamily projects

Hutchinson City Council voted May 6 to approve the advisability of issuing industrial revenue bonds (IRBs) and to authorize payment-in-lieu-of-tax agreements for two proposed multifamily projects, and to grant fee reductions intended to help each application for Low-Income Housing Tax Credits (LIHTC).

The council approved a resolution finding advisability of issuing IRBs for the Zimmerman Hutchinson Park project — a proposed 48-unit development near North Lorraine and Eleventh — and for Plaza Trails, a 36-unit project near Dillon’s on 30th Street. The council also approved $40,000 reductions in combined building-permit and water-service tap fees for each project, and authorized a $250-per-unit annual payment-in-lieu-of-tax (PILOT) that staff said would offset the fee waivers over time.

Why it matters: both developers plan to pursue state and federal affordable‑housing tax credits. Council and staff said IRBs (which allow sales‑tax relief during construction and open the option of a property‑tax exemption) and local fee waivers improve the competitiveness of Hutchinson applications for those credits.

Staff and developers’ descriptions Angela Richard, Hutchinson’s finance director, outlined the IRB and PILOT mechanics: "By approving the advisability of issuing IRBs for this project, this will allow them…