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Andover council sets June 30 hearing on proposed Penner South RHID to spur housing buildout
Summary
The council voted to set a public hearing on June 30, 2026, to consider a Reinvestment Housing Incentive District for the Penner South property; staff said the tool would capture incremental property‑tax revenue to pay roughly $2.88 million of developer reimbursements and public infrastructure costs and that the district is self‑sustaining. (350 characters max)
The Andover City Council on May 13 voted to set a public hearing for June 30, 2026, to consider establishment of a Reinvestment Housing Incentive District (RHID) for the property referred to in staff materials as Penner South.
City planning staff said the larger Penner property (described in materials as roughly 150 acres and annexed in 2023) has significant infrastructure barriers — no direct water and sewer service and service areas under different rural providers — that have kept it undeveloped. “An RHID is an economic development tool that’s allowable under state statute that captures the incremental property tax generated by new construction in this district,” planning staff said, describing the mechanism and how it would be used to finance on‑site water and sewer mains.
According to the presentation, the developer’s plan anticipates full buildout valuation of more than $70 million and an estimated total RHID participation of $2,880,000. Staff said an estimated $921,000 of that would be financed by the city to cover water and sewer main costs; the materials reported $1,960,000 would be paid by the developer and then reimbursed from RHID proceeds once proof of electrical costs is provided. The RHID participation was described as self‑sustaining and not tapping existing city general funds.
Staff materials list 284 dwelling units at full buildout and then specify 206 single‑family homes and 39 duplexes; the record does not specify how the remaining units are categorized. City staff said the analysis uses a conservative build‑out timeline and that the incremental tax captured would first pay debt service; the presentation noted the first RHID revenue year is labeled year two to reflect the lag between construction and placement on the tax rolls, with initial revenues expected beginning in 2028.
Council member Colin Gallagher moved to approve the resolution setting the hearing for 7 p.m. on June 30 at City Hall, 1609 East Central Avenue; the motion was seconded and carried unanimously. Staff noted that, under state law, persons aggrieved by the council’s action have 30 days after the decision to appeal to district court.
Next step: the council will hold the public hearing on June 30; staff and the developer are expected to present full financial exhibits and a development plan at that time.
