Riley County Commission finds 'adverse effects' for Manhattan RHID and adopts resolution

The Riley County Commission on June 12 voted to find that the City of Manhattan's proposed reinvestment housing incentive district (RHID) for the LK Townhomes project would create adverse effects on Riley County and adopted a formal resolution reflecting that finding.

County staff and officials told the commission their analysis raised fiscal and policy concerns about the proposal, which would enable a developer to capture future property-tax increment from newly developed homes on existing lots in Manhattan for a defined period. Britney Phillips, Riley County budget and finance officer, told commissioners the county's review found the county's share of captured revenue that would be paid to the developer could total roughly $557,173.73 through 2040 and that the RHID would shift tax burden onto other taxpayers during the capture period. Phillips said the applicant's own March presentation had described the development as “an all or nothing development,” and county staff flagged replacement of public infrastructure, special assessments and the length of the capture period as concerns.

Why this matters: Manhattan and Riley County face a recognized shortage of workforce housing, but the RHID tool diverts future property-tax increments for a period (15 years in this case) to finance development incentives. The Riley County Commission concluded that, for this project, the near-term fiscal and policy tradeoffs outweighed potential long-term benefits and adopted a resolution finding adverse effects. The City of Manhattan and other taxing entities previously reviewed or supported the project and state housing officials had awarded related grants; the county's action is a separate legal finding by the commission.

What county staff presented

Jacob Hansen,…