Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Affordable Housing topic
No spam. Unsubscribe anytime.
Commission authorizes land-transfer agreement for Sunflower Flats; project intended to house Garden Grove residents
Summary
The commission approved a land-transfer and development agreement with the Manhattan Housing Authority for Lot 1 (Sunflower Flats). The project will create subsidized housing intended to relocate Garden Grove 1 and 2 residents; HUD approvals and contract transfers are required before construction can begin.
The Manhattan City Commission on Feb. 18 authorized city administration to finalize and the mayor and city clerk to execute a land-transfer and development agreement with the Manhattan Housing Authority (MHA) for Lot 1, the Sunflower Flats project.
The motion passed unanimously, 5–0. The land transfer in the agreement is conditioned on construction commencement and other contract triggers spelled out in the agreement; staff emphasized the city will not transfer the property before the developer satisfies the required milestones.
Deputy City Manager Jason Hilgers and representatives from McMillan Architects and the Manhattan Housing Authority described the project as 62 rental units intended to house residents displaced from Garden Grove 1 and 2. Architect Garrett (Garrick) Baker presented design illustrations and said the project would include parking, ADA stalls and an elevated courtyard; the project has completed historic-resources and planning-board review and staff expects permit submission late February.
Aaron (Manhattan Housing Authority) said the project was initiated in part because of flooding at Garden Grove 1 and 2 and that the Sunflower Flats units are intended to receive displaced residents. City staff and developers emphasized that HUD approvals and assignment of Housing Assistance Payment (HAP) contracts are prerequisites to starting construction: "...we have to get HUD approval to transfer those before we can actually start," a project representative said, noting a target start-by date in June as a practical deadline for beginning construction.
Funding sources discussed included a $1.5 million Department of Commerce ARPA grant (reimbursement basis) the project expects to use for predevelopment; staff said that grant is reimbursement-based and not yet in hand. Representatives warned that state-level proposed changes to the low-income housing tax credit could affect other projects and urged commissioners to contact the legislative delegation about protections for already-awarded projects.
Jason Hilgers described key contractual timing in the land-transfer agreement: the city will transfer the lot only after the developer has commenced construction and met specified permit and excavation milestones. Staff reiterated the agreement contains protections and deadlines, including a completion target for the project in late 2026.
The commission voted 5–0 to authorize city administration to finalize the land-transfer and development agreement and to authorize the mayor and city clerk to execute necessary real-estate documents. Staff said HUD approvals, HAP contract transfers and other financing steps remain before the city will convey the property.
Commissioners asked staff to continue outreach to the legislature about the state housing-credit bill and requested continued updates on HUD and Department of Commerce timelines.
