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Council approves IRB amendment for Market Center affordable apartments, raising letter of intent to $35 million
Summary
Council adopted an amended resolution of intent to change the borrowing entity name to Market Center Apartments LP and increase the industrial revenue bond letter of intent for Market Center Apartments from $30 million to $35 million; staff said the change is tied to LIHTC financing and only sales tax exemption on bond‑financed purchases applies.
WICHITA, Kan. — The City Council voted Sept. 3 to amend an earlier resolution of intent authorizing industrial revenue bond use for the Market Center redevelopment into 114 affordable housing units.
Assistant City Manager Troy Anderson said Wichita Opco LLC will assign tax credits and restructure as Market Center Apartments LP after capital investors organized. Because project costs increased, the applicant requested the IRB letter of intent be raised from $30 million to $35 million to comply with low‑income housing tax credit rules. "Approval of the request will ensure compliance under the tax credit rules for projects financed with tax exempt bonds," Anderson said.
Anderson and staff clarified the city is not lending money and that the transaction is structured as a revenue bond mechanism to enable sales tax exemptions on bond‑financed purchases; staff emphasized "no taxpayer dollars are at risk" and that developers bear all financing costs and bond issuance expenses.
Council closed the public hearing, asked for follow‑up on unit rents after a brief technical problem with the online applicant, and approved the amended resolution and necessary signatures by unanimous vote.
Staff said they will provide the council with rent limits for the rent‑restricted units, which are determined by HUD formulas tied to area median income.
