Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Housing Development topic
No spam. Unsubscribe anytime.
Andover council begins RHID process for 73‑acre Penner property to address infrastructure cost gap
Summary
The Andover City Council on April 14 approved a resolution of intent to start the statutory process for a reinvestment housing incentive district (RHID) covering about 73 acres of the Penner property, aiming to use future tax increment to help offset unusual water and electric hookup costs. Council emphasized the step does not commit the city to financing or agreements and additional feasibility work will be presented April 27.
The Andover City Council voted April 14 to adopt a resolution of intent to initiate the statutory process for a reinvestment housing incentive district (RHID) for roughly 73 acres of the Penner property north of 21st Street.
“RHID isn't being recommended to give the developer a windfall, but it's being considered because this site faces cost burdens that comparable properties in Andover do not,” said Jolene Graham, assistant city administrator, describing the staff recommendation and the limits of the current action. Graham told the council the resolution starts the multi‑step statutory process but “does not commit the city to establishing the district or approve any financial structure or development agreement.”
Staff told the council two major infrastructure barriers make development of the Penner site more expensive than comparable locations: the site lies in Rural Water District 5's service area, producing higher water infrastructure costs, and Butler Rural Electric's recently changed model charges developers an upfront per‑lot fee without a reimbursement mechanism. Graham said current estimates under Butler Rural Electric's model are “well over a million dollars” without a recovery path for the developer.
City staff emphasized next steps and timing: a feasibility analysis will be presented at the council’s April 27 workshop, a public hearing is tentatively scheduled for May 12, and the earliest statutory date for adopting any ordinance would be June 30. Graham also said both USD 385 and Butler County would be formally notified if a district is ultimately established and each would have 30 days to file objections under the statutory process.
Developers Marv and Dylan Shelonburgg of Shelonburgg Development Company were identified as the project proponents, and staff said they will present concept plans and answer questions at the April 27 workshop.
Council members asked about scope and timing. Staff said the current concept contemplates roughly 200 single‑family entry‑level homes and several dozen duplexes; the final development concept will be presented on April 27. City attorney JT Klaus cautioned that an RHID runs for a maximum 25 years once it takes effect, which argued for limiting the district to the area the developer controls rather than a broader boundary.
The council approved the resolution of intent, 6–0. Graham reiterated that approval initiates due diligence and does not commit the city to any financial structure or final approval.
What happens next: staff will present a feasibility analysis and developer concepts at a workshop on April 27, the council plans a public hearing (staff estimated May 12), and any ordinance to establish a district would follow the statutory notice and intergovernmental notification requirements before final action.
