Commission authorizes land transfer and agreements for 62-unit Sunflower Flats senior housing project

The Manhattan City Commission unanimously approved a package of agreements enabling the Manhattan Housing Authority's Sunflower Flats project, a proposed 62-unit affordable senior housing development at Pierre and 5th Streets.

City staff introduced the item as the culmination of a multi-year effort. Jared and other staff outlined three actions: a land transfer and development agreement to convey Lot 1 to MHA with reversionary language, a public infrastructure construction agreement for alley and parking repairs, and consideration of a workforce-housing sales-tax grant to help fund rooftop solar panels. "The development agreement calls out contingencies...they have applied for and received a building permit. They are still awaiting some necessary governmental approvals," staff explained. The restrictive covenant requires the site to remain used for affordable housing and allows the city to seek reversion if the use ceases for more than two consecutive years, subject to lender rights.

Aaron Esterbrook of Manhattan Housing Authority described funding and timing: the project was awarded a $1,500,000 Abode grant and received low-income housing tax credits; the presentation cited an overall project cost figure shown in slides of roughly $16,500,000, while staff noted construction-loan accounting raised a notional figure shown on some slides. Aaron said the team is pursuing one final HUD flood-plain waiver (a 500-year waiver) and working with Senator Moran's office to secure required signatures. "We're working with Senator Moran's office...we have 3 of 8 [signatures] and Michael Snodgrass and senator Moran's office are working to get those other 5 by Friday," Aaron said.

Public infrastructure items were described: staff estimated developer-paid site work at about $830,125 and indicated the developer would cover costs of burying/relocating certain utilities in Zones 1 and 2; staff also noted an estimated developer-requested public-infrastructure scope just under $225,000 where city permission is required for construction in the alley and parking area. The project team said the building would offer 62 accessible one-bedroom units (roughly 700 sq ft each), community spaces and service areas. Completion and occupancy timing appeared in the record in two places: the development agreement cites a completion date at the end of 2028, while project staff said they are targeting an earlier occupancy in January 2028 subject to construction and HUD approvals.

Commissioners asked about occupancy requirements, the length of the restrictive covenant (staff said it runs with the land), annual operating costs (developers estimated about $460,000), and opportunities to pursue additional federal solar incentives if they surface during construction. Developer Michael Snodgrass noted eligibility for some federal incentives depends on timing and legislative rules.

After public comment in support of the project, the commission authorized city administration to finalize the land-transfer and related agreements, and later approved a resolution (No. 120225) transferring city property to MHA; votes were 5-0.