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Council adopts resolution to support 721 West Maple multifamily project with revenue bonds and tax abatements
Summary
City staff presented a loan-of-concept for approximately $6 million in multifamily revenue bonds and associated property and sales tax abatements for a proposed 36-unit Downtown Delano development; staff said revenue bonds do not place taxpayers at risk and showed a cost-benefit analysis favorable to city, county and state.
The Wichita City Council on May 6 adopted a resolution supporting a letter of intent to issue multifamily residential revenue bonds for 721 West Maple, a proposed 36-unit downtown Delano project that developers described as a three-building prototype intended to attract young professionals and other residents seeking modern downtown housing.
Assistant City Manager Troy Anderson reviewed the proposed use of approximately $6 million in revenue bonds and explained that, under city policy and state law, revenue bonds are a financing mechanism that can enable property tax abatements and sales-tax exemptions; Anderson emphasized the city would not lend money or underwrite investor risk and that bond-related costs would be borne by the project sponsor.
Staff outlined the city's economic-development incentives calculation: local policy suggested a total 75% property tax abatement in the first full year based on capital investment and redevelopment-area bonus points; staff estimated the first-year abatement would be worth about $43,000 across jurisdictions, with the city's share approximately $13,000. A statutory cost-benefit analysis provided to council showed ratios greater than 1:1 for the city, county and special school district and higher ratios for state-level impacts, indicating staff's view that the project returned more in estimated benefits than the value of available incentives.
Councilors asked about existing taxes on the vacant parcels and how parking would be addressed; the applicant said the project intends to provide parking at a one-space-per-bedroom market level and estimated one-bedroom rents around $1,200 to $1,500 and two-bedroom rents around $1,717.50. Council approved the resolution and authorized signatures so that city staff could continue final document preparation and bond counsel review if the sponsor secures bond purchasers and other financing.
