Commission narrowly approves extension for Southview Estates RHID completion date; mayor recused

The Salina City Commission on March 24 approved a resolution amending the RHID (Redevelopment Housing Incentive District) development agreement for Southview Estates LLC, extending the project’s milestone completion deadline to Dec. 31, 2026.

Staff reported that Southview Estates (the Ryan Addition) received a Modern Income Housing (MIH) grant in 2021 of $400,000 and an additional $208,000 in 2022; the developer also holds RHID approval with eligible reimbursement up to $6,840,687. Per the development agreement and a 2023 amendment, milestone 4 required completion of at least 42 single‑family homes and 66 townhomes and completion of internal infrastructure by Feb. 14, 2026. The developer asked to change the milestone table (Exhibit F) and set the completion date to Dec. 31, 2026 — roughly ten additional months.

Staff’s presentation explained the consequences if the developer misses the original deadline: for each month late the total eligible RHID reimbursement may be reduced by 2.5 percent. Using the original $6,840,687 estimate, a 10‑month delay could reduce eligible RHID reimbursements by roughly 25 percent (to an approximate reimbursable cap of $5,130,515), accelerating the point at which the RHID cap is met and the district would close.

Chris (developer representative) told the commission the project has faced higher interest rates, supply‑chain and labor challenges and that market activity just recently improved; he provided a progress update: 51 units sold to date (nine to MIH‑eligible homeowners), five single‑family houses under contract, multiple townhome units in various stages of completion and all utilities in place. The developer asked for additional time so they can complete construction and sell units without flooding the market with finished product.

Mayor Linkowitz recused himself from the item because of a conflict with Southview Estates LLC. After public comment and questions, the commission took a roll‑call vote. The motion to approve the amendment passed (three in favor, one opposed); one commissioner was recused from the vote (the mayor). The motion: approve Resolution No. 25‑8287 to amend Exhibit F and set the new project completion date to Dec. 31, 2026.

During public comment several residents urged stricter enforcement of contractual timelines and questioned the developer’s repeated requests for amendments; the developer and staff said the project remains active and that an extension would allow construction to continue at a market‑paced rate.