The Eudora City Commission on Monday took another necessary step if its $850,000 investment in the Nottingham Elementary School property is to pay off for the community.

Commissioners unanimously voted to create a Tax Increment Financing District for the property. The district also includes the Kaw Valley Bank property north of 14th Street.

The action came immediately after a public hearing on the proposed TIF district that had Eudora school district board member Joe Hurla as the only speaker. Hurla said the school board had concerns about the loss of property tax revenue and lack of direct control of future development, but put those considerations aside because of its trust in the current city government.

“We felt a level of trust with the city manager and the city government that made us comfortable with this,” he said. “We think this is a good opportunity for Eudora to become much more than what it is.”

City Attorney David Waters said with publication of the ordinance, the school district and the Douglas County Commission would have 30 days to decide not to participate in the TIF.

The city of Eudora bought the former Nottingham Elementary School and the adjacent Law Field from the Eudora school district for $850,000 in 2015 with the goal of controlling the redevelopment of the 15-acre site on the city’s Kansas Highway 10 gateway. In April 2016, the Eudora City Commission selected the Kansas City, Mo., firm CBC Real Estate Group to develop the property. The Commission entered into a predevelopment agreement with the firm in May, which committed the city to work exclusively with CBC while the firm recruited future tenants for the property. The city and developer will eventually enter into a development agreement that ties down the responsibilities of both parties in the property’s development.

Creation of a Nottingham TIF district would allow the added property, sales and franchise taxes collected from the site’s redevelopment to be used to finance needed infrastructure improvements at the site. TIFs cannot be used to finance privately owned buildings. By state statute, TIF bonds can have up to a 20-year retirement schedule.

In another decision that could have significant consequences to the community, commissioners approved a resolution supporting Topeka developer Commercial Group Inc.’s application for tax credits from the Kansas Housing Resources Corporation. If awarded, the tax credits would finance the complete rehabilitation of the 60 units in the company’s Pinecrest I and II apartment complexes and the development of a new 36-unit housing complex northeast of the intersection of 10th and Cedar streets. The new apartment complex would be built just to the east of the Pinecrest complexes.

Cathy Feriend, of Commercial Group Inc., said the new complex would have about 36 apartments with a mix of one- and two-bedroom units. The new apartments would be available for general occupancy and families.

The new complex would have a management office and a clubhouse with central laundry room, meeting area, exercise equipment and computer room for residents’ use. It would also feature a walking trail and playground.

The renovated Pinecrest Apartments would remain available only for those 62 years of age or older or individuals with disabilities. A clubhouse with similar features as the one built in the new complex would be part of the renovations, Feriend said.

Tax credit applications for the new complex and the Pinecrest renovations would be submitted separately, Feriend said. The KHRC could approve both, OK one and suggest Commercial Group reapply for the rejected application in 2018, or reject both, she said.

“These are highly competitive,” she said. “They expect about 50 applications and will award 13 or 14 of those.”

The projects wouldn’t go forward without the tax credits, Feriend said. If awarded for either project, construction would start in 2018.

The resolution of support does not commit the city to approving building permits or any zoning changes needed for the projects, Feriend said.

At a work session that followed the business meeting, the City Commission gave consensus for city staff to seek a Kansas Department of Health and Environment loan to finance the proposed Winchester waterline project and the improvements necessary to make well No. 10 operational. The proposed waterline project would install a 12-inch waterline from the water tower at 14th and Maple streets west along 14th Street. It would tie into an existing 12-inch line on Winchester Road.

As for the well, a citizen gave the water well to the city. The city must start using it as a water source soon or risk losing its water rights.

City Manager Barack Matite and Assistant to the City Manager Leslie Herring recommended the city apply for the KDHE loan after they learned the city did not have enough low- or moderate-income households to qualify for grant programs that finance infrastructure improvements. Conversely, Matite was confident the city’s loan application would be approved.

Matite estimated the two projects would cost $750,000 and said both could be completed in 2017. The task before commissioners in the coming months would be identifying the funding source that would pay off the loan, Matite said. Because the debt service would have a considerable impact on water rates, commissioners could consider using for that purpose some of the 4 mills set aside in the 2017 budget for infrastructure upgrades, he said.