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Commission approves amended incentives for Morrill Flats workforce housing project
Summary
Commissioners approved an amended development agreement and authorization for multifamily housing revenue bonds for the Morrill Flats project at 716 Morrill Street, allowing the project to expand from five to seven rental workforce units and increasing the workforce-housing sales-tax allocation to $125,000; vote was 5–0.
The Manhattan City Commission approved an amendment to the development agreement and authorized multifamily housing revenue bonds for the Morrill Flats workforce-housing project at 716 Morrill Street.
Stephanie Peterson, director of community development, told the commission that developers asked to increase the project from five to seven rental workforce units after discovering recent parking-regulation changes that allow two additional units on the same parcel. The total projected project cost rose from about $800,000 to roughly $1,250,000. The developer, Tyler Holloman of Frontier Development Group, said the team altered the design from a single-level to a two-story plan to comply with lot-coverage and zoning rules.
Under the amended proposal, workforce-housing sales-tax support would increase proportionately to the policy cap (10% of total project cost), rising to $125,000. Staff estimated the 10‑year property-tax abatement would total about $184,000; after year 10 the property would generate an estimated $20,000 per year in property taxes based on current mills and valuations. The agreement will require annual developer certifications (leases and rental rates) and performance metrics; abatements would be reduced proportionally if units fall out of compliance with workforce-housing rent limits.
Commissioners asked about monitoring and parking; staff confirmed the developer must submit leases annually for certification and that the performance structure ties abatement levels to compliance. Commissioners voted 5–0 to approve the amended ordinance and associated resolutions (Ordinance No. 7,773 and related resolution language) to authorize multifamily housing revenue bonds and execute the amended economic-development agreement.
The project is rental housing and staff emphasized that the workforce-housing fund used for the incentive is a dedicated sales-tax fund passed by voters; this is not a general‑fund allocation.
Next steps: city staff will finalize the amended development agreement and the developer will provide required annual compliance materials as the project progresses.
