Commission approves Douglas County participation in 15‑year, 95% neighborhood revitalization rebate for Nindale Lofts 2

Douglas County commissioners approved participation Wednesday in a Neighborhood Revitalization Area (NRA) plan that would rebate 95% of incremental property tax growth for 15 years to support the Nindale Lofts 2 mixed‑use affordable housing project at 716 East Ninth Street in Lawrence.

Brandon McGuire, assistant city manager for the City of Lawrence, introduced the project and said developer Tony Kresnick is applying for a 9% Low‑Income Housing Tax Credit (LIHTC) and that the project team expects state and federal housing credits and grants to be part of the financing. McGuire said the proposed building would include 24 affordable one‑bedroom units targeted at 30%, 40% and 60% of area median income, 12 market‑rate units and six live/work units on the ground floor.

Tom Calico of Baker Tilly reviewed the NRA mechanics for the commission and emphasized that the rebate is a performance‑based rebate of incremental taxes: jurisdictions set a base assessed value, new assessed value from the completed project produces an increment, and a percentage of that increment can be rebated to the owner after taxes are paid. City staff and Baker Tilly described the NRA plan in the meeting packet; the city requested county participation through a cooperative agreement. Calico said the project is roughly a $14 million development, has a 30‑year affordability requirement in the LIHTC program, and also seeks a sales tax exemption on construction materials via industrial revenue bonds (IRBs).

Commissioners asked several procedural and fiscal questions, including why the rebate level is 95% and the 15‑year term. Calico and city staff said the developer’s pro forma and the typical financing structure for LIHTC projects informed the request; they said they reviewed the pro forma for reasonableness but did not prepare a formal “but‑for” analysis because LIHTC financing and other credits typically make such projects infeasible without subsidy. The City of Lawrence had already taken initial steps: a resolution of intent to issue IRBs and a first reading of an ordinance establishing the NRA.

County staff and the county appraiser explained administration details: the county appraiser sets the base and calculates annual incremental value for rebate eligibility; the cooperative agreement allows the county an administrative fee (stated in the packet) to cover the appraiser’s and treasurer’s work. Baker Tilly presented a present‑value fiscal estimate showing the county would receive about $43,000 in present‑value tax receipts without the project and about $107,000 with the project over the 15‑year period (present values), and the county would also receive the unrebatable 5% share of the increment.

During the public comment period there were no speakers on this item. A commissioner moved to approve county participation and to authorize the county administrator to sign a cooperative agreement with the City of Lawrence and USD 497 for administration of the NRA; the motion was seconded and passed 5–0.

The staff packet attached to the meeting includes the draft NRA plan, the cooperative agreement template, developer pro forma materials reviewed by Baker Tilly, and a list of other public and private funding sources the project plans to use. County staff indicated the county’s annual administrative fee for appraiser work is to be $1,000 per year under the cooperative agreement. The city and developer will continue the LIHTC application and related approvals, and the project will require final city and school district participation steps before rebates could be disbursed.