Garden City commission approves IRB intent for 48-unit affordable project and authorizes fee-waiver letter to boost application

The Garden City Commission on March 18 approved a resolution of intent to issue industrial revenue bonds (IRBs) that would allow a sales-tax exemption on construction materials for a proposed 48-unit affordable housing project by Zimmerman Properties LLC.

The approval, recorded as Resolution No. 3170, came after staff said the move would make the Zimmerman application more competitive before the Kansas Housing Resource Corporation (KHRC). Assistant City Manager Danielle Burke told commissioners the resolution carries no immediate fiscal impact; any tax-exempt status would apply only if the project later received state awards and completed the usual site-plan and zoning reviews.

Why it matters: KHRC awards for Low-Income Housing Tax Credits are highly competitive and can hinge on local financial incentives. Burke explained the IRB intention and a companion fee-waiver request were being considered proactively to improve the project's scoring when submitted to KHRC.

Commissioners then authorized a separate letter, signed by the mayor, indicating the city's support to waive up to $80,000 in fees if the project is awarded. Staff said KHRC awards partial credit for smaller waivers (an example cited was $40,000) and that the larger waiver would add roughly 10 points to the state's scoring rubric.

A Zimmerman representative who addressed the commission described the KHRC scoring process as finely balanced and said the local waiver could make the difference in a close competition. "These deals are lost by one point," the representative said. "I've lost deals because I was on the wrong side of the street and another developer was on the right side of the street. So it's very close." The representative also noted half the units were proposed as two-bedroom, two-bath and half as three-bedroom, two-bath, and that rents would be set for households at roughly 50–60 percent of area median income.

What the actions do and next steps: approving the resolution of intent makes the project eligible for a construction-materials sales-tax exemption if Zimmerman wins state credits; the fee-waiver letter is intended to accompany the developer's KHRC submission to raise its competitiveness. Both measures were approved separately by commission motion; commissioners and staff said any final fee waiver would be detailed in a development agreement if the project advances.

Clarifying details from the meeting: staff said the city would still require all normal zoning and site-plan approvals; the fee-waiver letter is a commitment of support, not a final development agreement. The staff presentation noted water-main extensions would be needed to serve the site and that the city would coordinate construction of those connections as part of the development agreement if the project moved forward.

The commission voted to approve Resolution No. 3170 and then voted to authorize the mayor to sign the fee-waiver letter as drafted. Both actions passed on voice votes (recorded as "all in favor say aye"), with no roll-call tallies provided in the public minutes.

The city will not automatically grant the waiver unless the project is awarded; staff said a development agreement would enumerate the exact waiver mechanics and any infrastructure commitments.