The Manchester City Council has continued to advance its commitment to adding more opportunities for housing development after approving four additional incentive agreements.
Under the most recent agreements, the council has continued use of its new incentive program formula — which offers developers a combination of a grant coupled with a forgivable loan.
City Administrator Tim Vick explained that the forgivable loan aspect of these deals mirror what the city has offered in the past and if the development projects fail to create enough incremental value through their new construction to cover the cost of the loan, whatever amount remaining will have to be reimbursed back to the city by the developer.
Previously, the council approved borrowing up to $2.5 million to facilitate these projects.
For the agreement with Jerry Krogmann, the council has approved an economic development grant in an amount not exceeding $300,000 along with a forgivable loan not to exceed $300,000. The deal will facilitate the development of a 13-lot residential subdivision to the north of Rosewood Drive where the city is providing funding to help cover costs associated with the installation of infrastructure and utilities.
For the agreement with S&R Construction, headed by Steve Pettlon, the council approved a development grant not to exceed $600,000 along with a forgivable loan not to exceed $600,000. The project will add 16 single-family lots, 14 duplex lots and a commercial lot along Bailey Drive in the Oakview Estates Subdivision, and like the agreement with Krogmann, the city is helping to fund the costs of infrastructure and utility development.
The council also approved another development agreement with Joe Hildebrand’s Bailey Drive Estates, offering an 80% property tax rebate for 10 years, which is not to exceed $170,000. The deal will aid in developing two additional duplexes in the area and mimics agreements the city has awarded in 2017 and 2020.
Councilman Dean Sherman commented that by awarding these types of incentives to developers, the council is pushing to accomplish one of its most desired priorities — adding more housing to help fill a need the city has to accommodate a growing workforce.
The council wasn’t just focused on spurring new construction in town — it also has committed funds to help rehabilitate older homes within city limits.
Partnering with East Central Intergovernmental Association (ECIA), the city will be participating in a United States Department of Housing and Urban Development (HUD) program that seeks to rid existing homes of lead paint.
Recently HUD committed $3,299,996 in lead-based paint removal funds, and under that program, homes within Delaware County.
Each calendar year, 10 homes within Manchester city limits can receive those funds and the council has agreed to provide a $1,600 match per project to help cover administration expenses.
Before the council passed the incentive, it learned there are six homes waiting to be funded within the city. It is estimated that each lead-removal project will cost approximately $25,000.
“For the city, this is a great way to address some of the lead issues that exist in rental properties,” Vick said.