To combat what has been frequently described as a significant lack of workforce housing, the Manchester City Council unanimously passed three separate development deals that will ultimately add more dwelling options within the city.
In total, the council will borrow an amount not to exceed $2.5 million to facilitate the projects.
“We are in dire need of housing and it’s difficult to get someone to come in and just start developing,” City Manager Tim Vick explained. “We know there’s a struggle within the community so we’re doing something outside of what we’ve done in the past to see if we can generate more housing and it does seem like it’s working.”
All three of the deals follow formulas similar to what the council has deployed in the past for recent housing projects, like the one that helped to facilitate the development by Wes Schulte.
According to city documents, the newly-added projects include providing tax increment financing support to Jerome Krogmann in connection with the construction of public infrastructure necessary for the development of a new residential subdivision; providing tax increment financing support to S & R Construction, Inc. in connection with the construction of public infrastructure necessary for the development of a new residential subdivision; and providing tax increment financing support to Joe Hildebrand/Bailey Drive Estates, LLC in connection with the construction of two duplexes.
The Krogmann endeavor, dubbed Meadow Park Fourth Subdivision Housing Development Project, includes a forgivable loan not to exceed $300,000 and a grant not to exceed $300,000.
The project will add all the necessary infrastructure, like water, sewer, streets, storm sewer and street lights, to pave the way for the development of 13 family dwelling units.
If newly generated tax revenue from the development does not cover the city’s forgivable loan investment, Vick said Krogmann would have to cover the remaining costs.
“Provided (the infrastructure project) is built within 12 years and the tax revenue collected off the project money we’ve invested, it can be forgiven,” Vick said of the loan.
The second project, S and R Construction’s Oakview Estates Housing Development Project, includes a forgivable loan not to exceed $250,000 and a grant not to exceed $250,000.
The same concept as the Krogmann deal, half the project will be covered by a grant and the loan can be forgiven provided the project generates enough new tax revenue to pay it off.
Oakview Estates is expected to add 16 single-family units and 26 attached single-family units, meaning they are duplex where occupants own their half, or basically condos with a shared common wall.
The Joe Hildebrand/Bailey Drive Estates project will add two new sets of duplexes and will include a 10 year, 80% tax rebate not to exceed $170,000.
“It’s the same incentive we’ve offered him for his last four projects,” Vick said.
While the total amount borrowed is not to exceed $2.5 million, that figure includes a $1 million bond from February that was taken to cover improvements costs on East Main Street.
“So, we’re combining all that together,” Vick said.
The council is expected to begin proceedings for the bond sale next month.