County to subsidize Plum Creek home lots: $9,000 per unit, up to $270,000, to lower lot prices

Reno County commissioners considered a proposed agreement to provide financial assistance to a private developer for Phase 1 of the Plum Creek subdivision on the north side of Hutchinson. Under the proposal discussed in commission chambers, the county would provide $9,000 per residential unit, paid to the developer, capped at $270,000 (30 units), to lower lot prices for buyers.

County staff described the arrangement as a developer-focused payment that would be applied when a residential unit is substantially completed, the unit receives a certificate of occupancy and is sold or leased in an arm's-length transaction to an unrelated third party. The agreement would run through the end of 2027; the developer may request an extension if the unit count is not complete by that date.

Developer Jim Straughn, who attended the meeting, told commissioners his objective is to lower lot prices and provide affordable, entry-level homes to buyers such as teachers and first-time households. "My goal is to provide affordable housing," Straughn said. He also said the money is intended to lower lot prices and ultimately benefit buyers.

Commissioners pressed staff and the developer on safeguards. They asked for documentation that would show the subsidy reduced buyer costs; staff said the county will retain a copy of the buyer's closing statement for its files. Commissioners also raised the difficulty of locking specific lot prices because model types and square footage vary; staff said they had requested closing statements to ensure the subsidy is reflected.

Staff said the proposed payment would be funded from the county's economic development reserve fund. The county budgets about $400,000 a year from the operating fund for economic-development projects, but this specific agreement would be encumbered from the reserve because current-year encumbrances leave insufficient unencumbered funds. Staff stated the reserve cash balance is "just over a million dollars" at the time of the discussion.

Commissioners noted the agreement is intended to work alongside state and local incentives, including RHID and MIH programs, and county policy allowing municipalities to request similar support under the county's residential housing growth policy (Resolution 2024-21). One commissioner said smaller towns with proposals for only a few homes should also be considered as the county develops a uniform approach.

A motion to approve the agreement was moved and discussed. Commission roll-call during the outcome discussion recorded three yes votes and one explicit no; staff indicated the agreement would proceed with the county executing a contract and tracking closing statements.