Council approves Plum Creek benchmark changes to preserve $1 million in MIH/ARPA funds

Hutchinson council members on March 3 approved staff’s recommendation to revise the dispersal schedule for roughly $1 million in Kansas Housing Resources Corporation (KHRC) MIH/ARPA funds tied to the Plum Creek subdivision so the city preserves the award before federal/state ARPA deadlines.

Matt Williams, director of community development, explained the original benchmarks tied disbursements to duplex and single‑family production and that only two homes have started; because ARPA funds must be expended by Dec. 31, staff proposed drawing the funds to the city now (restricted and controlled) so they count as expended by the federal deadline while maintaining performance‑based reimbursements to the developer. Staff also proposed revising benchmarks so reimbursements are tied exclusively to single‑family, owner‑occupied units to align with the developer’s adjusted plans.

Williams said KHRC indicated comfort with the request and that the change would not remove city accountability: "the funds would remain restricted and controlled by the city and would continue to be reimbursed to the developer only as performance benchmarks are met," he said.

Council members expressed frustration about the slow pace of construction — council noted only two homes have been started while the original completion expectation was June 2026 — and asked staff to preserve options if the development fails to make adequate progress. Staff said the state would entertain discussions about alternative uses of the funds if the developer fails to meet commitments, but current approvals and agreements are with Plum Creek and the named developer.

The council approved the benchmark adjustments and authorized the mayor to sign an amended development and grant agreement. Council asked staff to follow up with KHRC on timelines and to seek written guarantees of developer commitments where appropriate.