Pittsburg commission approves 10-year extension for Silverback Landing RHID after public hearing

The Pittsburg City Commission on Aug. 12 voted to approve an ordinance to add 10 years to the Silverback Landing Reinvestment Housing Incentive District (RHID), a change that city bond counsel said will not take effect until assignment documents between the current and proposed developers are signed.

The extension, described at the public hearing by Garth Herman of Gilmore & Bell, the city—ond counsel, is being requested by a proposed successor developer so the district—an approach a 25-year maximum permitted under changes to the RHID law. "At the conclusion of the public hearing, it's anticipated that the city commission would consider the adoption of the ordinance, number s dash 1 1 1 1, which will approve that substantial change to the district," Herman said.

Residents who live in the Silverback Landing subdivision addressed the commission during the hearing to urge careful oversight of the transfer and completion work. Keith Kloster, who said he has followed the project since it began, told commissioners he was concerned about unfinished infrastructure, unclear warranty resolution and how future maintenance will be funded. "What happens in 25 years or 22 years when the Phase 1 street start failing? Where's the money gonna come from?" Kloster asked.

Another resident, Jamie Lynn Bloom, said the current developer, identified in public testimony as P and L Development and associated with an individual named Mickey Vena, has left unaddressed maintenance and safety problems on unsold lots and with utilities. "He has not been honest or transparent with residents, has refused to communicate regarding our home warranties, has allowed the unpurchased lots to become overgrown and less than minimally maintained and has left multiple piles of debris throughout the neighborhood that remains unaddressed," Bloom said.

Developer and project representatives told the commission the extension is intended to allow a successor developer, Point Forward, to assume the project and complete outstanding work. Matt Burton, who identified himself as representing the acquiring party and Point Forward, said the company expects to use available RHID revenues to finish landscaping, signage and other items left undone. "That money that is there that is a part of the RID now, it's a part of what's required to make this transaction happen," Burton said. He added that he would be the contact for residents as the transfer proceeds.

Commissioners also discussed previous decisions tied to Silverback Landing, including a one-time city contribution to shift street construction from asphalt to concrete. Commissioners said the $120,000 differential was paid at the time from city street-sales-tax and economic development funds and was paid directly to the contractor rather than to the developer. One commissioner noted that certain reimbursements and developer-eligible costs have been withheld pending completion of Phase 1.

The commission moved and seconded the ordinance to extend the RHID; the motion passed by voice vote with a 4-1 tally. Officials and bond counsel said the ordinance's effectiveness is delayed until the assignment and related transfer documents between P and L Development and the successor developer are finalized and signed, and any statutory 30-day nullification period after today's public hearing must elapse without nullification by Crawford County or USD 250.

Why it matters: Extending the RHID increases the time during which tax increment revenues from the district can be used to reimburse eligible developer costs, which supporters say is necessary for the successor developer to complete the project. Opponents at the hearing urged the city to ensure documentation, warranties and outstanding infrastructure issues are resolved before revenues are dispersed.

Next steps: Bond counsel said negotiations between developers were ongoing and anticipated to conclude toward September; the extension will not take effect until the assignment is signed and the 30-day period following the public hearing passes without a nullifying resolution from the Board of County Commissioners of Crawford County or the USD 250 Board of Education.