photo by: Chris Conde/Journal-World

The Douglas County Courthouse is pictured Thursday, Dec. 22, 2022.

Tax breaks for a variety of commercial projects — think everything from retail districts to hotels — aren’t too uncommon in Lawrence and Douglas County, but similar financial incentives haven’t often been used to spur single family housing developments.

The City of Eudora, though, is hoping to use a recently revamped state tax break program to boost single family home construction in the community of about 6,000 people, which is expected to see population growth as Panasonic completes a $4 billion, 4,000-job electric vehicle battery plant in neighboring De Soto.

Before it can happen, though, Douglas County commissioners have to get on board with the idea of creating a new single-family district in Eudora that would be eligible for the tax breaks. County commissioners at their Wednesday meeting will receive a briefing on the project. No action is required by commissioners during Wednesday’s meeting, unless they opt to “protest” the creation of the housing district.

The proposed development — an expansion of the Shadow Ridge subdivision — calls for 118 mostly 2-to-4 bedroom single-family units located just west of Eudora High School. The state tax incentive is called the Reinvestment Housing Incentive District program. It works in ways similar to some of the commercial incentive districts that have been used in Lawrence. In basic terms, when a development increases the tax base, the new taxes created by the development can be captured and used to help pay for specific costs related to the development.

In the case of a housing project, the captured tax dollars could be used to pay for infrastructure needed to support the project. While homeowners wouldn’t directly see a tax break from the program, government officials argue that the incentive allows for homes to be built more affordably, and spurs construction that perhaps would not happen otherwise.

According to the Kansas Department of Commerce’s website, The RHID program is designed to “capture incremental increases in property taxes created by a housing development project for up to 25 years,” and that revenue can then be used to recoup costs associated with the project, or to pay debt service on bonds.

According to the website, the property tax increment can be used to reimburse debt resulting from land acquisition, site preparation, storm sewers and drainage systems, street grading and paving, public right-of-ways, sidewalks, and street lighting fixtures.

The city of Eudora has already cleared one hurdle via the completion of a Housing Needs Analysis (HNA), which defines the area of the designated district. The Kansas Department of Commerce agreed with the findings, paving the way for the public hearing. The HNA revealed a shortage of quality housing that is expected to persist, which could greatly impede future economic growth if action is not taken to address the issue. The analysis concluded that “the future well-being of the city” is dependent on “additional residential development.”

After county commissioners receive a briefing on the project, Eudora City Commissioners will hold a public hearing later in the month to move forward with the special housing district. The Eudora public hearing is slated for 7 p.m., Jan. 22 at Eudora City Hall — 4 E. Seventh St.

The state program to encourage new single family housing has been around for more than 10 years, according to the state’s website. However, the program previously had more of a focus on rural communities. But last year changes were made to the program that makes it easier for larger communities to use the program.

Lawrence, which is battling affordable housing issues, has not used the incentive, but the recent changes to the program opens the door for the city to possible qualify for the program. One of the changes made to the program is that cities with populations of more than 60,000 people can now apply for the program through the Kansas Department of Commerce. However, there are restrictions to how many homes can be built in large cities using the programs, and also restrictions on how large those homes can be.

In other business, county commissioners on Wednesday will:

• Consider amending a contract related to a planned restoration of the Douglas County Courthouse. The amendment to the contract authorizes architectural design firm Hernly Associates Inc. to perform design and documentation services that’s tied to the second phase of the project. The restoration-work is centered on above-grade stone masonry. The amendment also ensures that Hernly Associates Inc. will get paid for the work at a percentage of the total cost of construction. Under the new contract, that fee is set at 7.5%

• Consider, in the consent agenda, authorizing Public Works Director Chad Voigt to execute an agreement with the Kansas Department of Transportation outlining reimbursement to Douglas County for noxious weed treatment on state highways for the 2024 calendar year.

• Consider authorizing the Public Works department to purchase a 2025 Mack Semi-Tractor from Kansas City, Missouri-based Nextran Truck Center, in the amount of $181,535.00

The commission’s meeting begins at 5:30 p.m. Wednesday at the County Courthouse at 11th and Massachusetts streets. The meeting can be viewed via Zoom. The agenda packet can be found on the county’s website, www.douglascountyks.org.