City designates Rural Housing Incentive District

Establishing an RHID effectively freezes the assessed valuation of the created district and future property tax revenues which are then dedicated to reimbursing a developer for their expenses within the parameters of an agreed-upon development agreement.

The RHID tool is authorized by the State of Kansas and can go as long as 25 years or up until the amount of the eligible project expenses is reimbursed, whichever is shorter.

Vision 4 First, LLC, is a development group looking to utilize the RHID tool as they build out infrastructure to create attractive new lots for sale in the area loosely contained between 2nd Street and Washington Street as well as Laramie Street and Riley Street. This is the old 1st Street corridor.

Gilmore and Bell would prepare all the necessary documents and the developer would be responsible for any fees associated with those efforts.

The Vision 4 First, LLC, preliminary site plans indicate the project could create around 45 lots suitable for housing construction. If fully built out and assuming all single-family homes at a modest average valuation of $225,000, this could create over $10 million in housing. At current property tax rates, would drive around $200,000 of total property tax revenue per year.

The increase in future property tax revenue would be delayed until the RHID is fully paid out per the terms of a yet-to-be-created development agreement.

The city’s Economic Development Advisory Group (EDAG) voted unanimously in support of this project concept in November 2022. This would be the first-ever RHID in the city.

Subsequently, to establish the district, the developer and the city will need to negotiate a development agreement to govern the terms of the RHID as well as other requests for partnership from the developer.

The city adopted Resolution No. 3343 making certain findings and determinations as to the need for housing within the city of Atchison, Kansas, and setting forth the legal description of the real property proposed to be designated as a Rural Housing Incentive District within the City.