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Commission approves amended development deal for Morrill Flats, adding two workforce units
Summary
The commission approved an amendment to the Morrill Flats development agreement to increase the project from five to seven workforce rental units and adjusted the associated workforce-housing sales-tax and multifamily revenue-bond authorizations; motion carried 5–0.
The Manhattan City Commission unanimously approved an amended economic-development agreement and related authorizations for the Morrill Flats housing project at 716 Morrill Street.
Stephanie Peterson, director of community development, summarized changes requested by the developer: the project would increase from five to seven rental workforce units and convert from a single-level concept to a two-story plan. Frontier Development Group representatives, led by Tyler Holloman, said the total development cost rose from about $800,000 to roughly $1.25 million; under the city’s workforce-housing policy the developer requested a proportionate increase in dedicated workforce-housing sales-tax support (from $80,000 to $125,000) and adjustments to the multifamily housing revenue-bond (MHRB) authorization.
Peterson said the workforce-housing sales tax is a dedicated, voter-approved fund and that policy allows funding up to 10% of total project cost; she explained the abatement and bond tools are designed as facilitation mechanisms and not direct city purchases of the project. Staff also explained annual performance monitoring requirements: the developer must submit lease information each November and the abatement would be reduced if rental rates fall outside defined workforce-housing thresholds.
Staff estimated that, under the proposed agreement and current valuations, the 10-year property-tax abatement would total about $184,000; at the end of the abatement period the property could generate about $20,000 per year in property tax based on today’s mills and valuations. The developer said units will be rentals and certified each year against HUD-based workforce-rental limits.
Commissioners who spoke said the project aligns with the city’s workforce-housing goals and performance-based incentive structure. The motion to approve the related ordinance and amended economic-development agreement (Ordinance No. 7,773 and related resolution) passed on a 5–0 roll call.
