Park City approves contingent permit-waiver and low‑interest loan to support Mennonite Housing senior apartments in Park Center

Park City Council voted 6-0 Tuesday to approve two measures to support a proposed 50‑unit senior apartment complex, Lancaster Square, in the Park Center development: a waiver of building permit fees capped at $80,000 and a contingent low‑interest loan of $500,001 at 1% amortized over 20 years.

The actions are contingent on the project winning an award under the Low Income Housing Tax Credit (LIHTC) process administered by the Kansas Housing Resources Corporation (KHRC). City staff and Mennonite Housing officials told the council the state and federal tax credits are central to the project’s viability and noted uncertainty because the Kansas Legislature is considering changes to the state program.

Sean (city staff) introduced the request and described the package Mennonite Housing sought: a building‑permit fee waiver estimated at roughly $80,000, a city loan that meets KHRC’s “below‑market loan” criterion (at least $10,000 per unit, or more than $500,000 for 50 units), and a potential sales‑tax exemption later by resolution. Byron Adrian, who said he is recently retired from Mennonite Housing and is working with the nonprofit on the application, described the proposed two‑story Lancaster Square building and its amenities, and noted the organization’s long experience in the region. “We have been working in this area for quite some time,” Adrian said, describing prior projects in Wichita and surrounding communities.

Mennonite Housing seeks the city loan primarily to increase the competitiveness of its LIHTC application. Staff said KHRC grades applications on multiple criteria, including whether applicants can demonstrate below‑market financing; the requirement in this case is a loan that exceeds $10,000 per planned unit. Council members asked for clarity on the mechanics: if the project is selected by KHRC and all contingencies are satisfied, the city would issue the loan (the motion adopted sets the principal at $500,001), and the nonprofit would repay principal and interest at 1% over 20 years. Staff estimated the total interest over 20 years at roughly $52,000.

Council discussion stressed the contingency tied to KHRC approval and the state program’s uncertainty. Councilmember Charles Schwenke asked whether the $80,000 waiver is separate from the loan; staff confirmed both items can be made contingent on a successful LIHTC award. Councilmember Charlie Davidson and others also noted the project’s proximity to the senior center as a community benefit. City staff said construction, if approved, would start in March 2026 and take about a year to complete. Staff also noted the nonprofit’s planned property would be tax‑exempt as a nonprofit housing development, which affects property‑tax revenue but is not controlled by the city.

Councilmember Charlie Davidson moved to approve the permit‑fee waiver (cap $80,000) and authorize a contingent city loan of $500,001 at 1% over 20 years, contingent on successful LIHTC award and project approvals; George Glover seconded. The motion passed 6-0.

The action does not finalize any sales‑tax exemption; staff said a separate resolution and additional documentation would be required if the developer later requests it. Mennonite Housing representatives present included Byron Adrian, Angie Mendoza (identified as current president of Mennonite Housing), and Corey Bannister (director of construction). The council and staff emphasized that the city’s financial commitment would be activated only if the project receives LIHTC approval under the current program rules.