Lancaster council approves annexation for 50‑unit Gateway workforce housing project

The Lancaster City Council on Dec. 9 approved the second reading of Ordinance 25-9 to annex 6.32 acres at the northwest corner of North Park Drive and North Park Square for a 50‑unit workforce housing development proposed by Gateway Development Corporation.

Council member Miller moved to approve the second reading; Council member Taylor seconded. The motion carried on a unanimous roll-call vote. Mayor (presiding) and seven council members were recorded present during the vote.

At a staff briefing, Mr. Huffless summarized the proposal: Gateway plans a 50‑unit multifamily complex with 10 one-bedroom, 34 two‑bedroom and six three‑bedroom units to be served by city utilities. Rents the developer proposed in the meeting record were roughly $900 for one‑bedroom units, $1,100 for two‑bedroom units and $1,250 for three‑bedroom units.

A Gateway representative, who identified himself in the meeting as a civil engineer and project representative, told councilmembers the project had been awarded 2025 9% low‑income housing tax credits and that the credit package equates to about $1.3 million over 15 years. "They received 1.3 million in tax credit for 15 years," the representative said, explaining those credits typically are used as equity for project financing and that the project will continue to pay property taxes.

Council members pressed the developer on durability of affordability and resale. The Gateway representative said program rules and state housing oversight limit rents and noted that if a property stops serving low‑ and moderate‑income households, clawback provisions tied to the tax credits can require repayment of credits or other penalties. The representative also said the developer plans to manage the property and that transfers would be subject to program rules.

Councilmembers raised safety and access questions for the site at North Park Drive, noting past crashes and the potential for increased cross‑traffic where a state highway intersects the local street. City staff and the developer confirmed a traffic study will be completed before final development approvals and that staff-level coordination with state and county authorities will address access and safety mitigation.

The meeting also covered routine items: the council adopted its 2026 meeting calendar and the Planning Commission and Board of Zoning Appeals schedule (staff said publishing both schedules in the Lancaster News will cost approximately $225). During public comment, resident Charlene Hunter urged the council to enforce city code section 2.56 and use fines for nonattendance to address what she described as two years without representation in District 5.

Votes at a glance: the council unanimously approved the minutes, affirmed the 2026 council meeting schedule, adopted the Planning Commission and Board of Zoning Appeals schedules (publication cost ~ $225), authorized closing City Hall on Dec. 11, 2025 for a staff luncheon, and approved the second reading of Ordinance 25-9 (annexation for the Gateway development).

What happens next: Staff indicated the developer must complete required technical studies, including the traffic study, and coordinate development conditions with city staff before any building permits are issued.