photo by: Bremen Keasey

A parking lot near the corner of Ninth and Delaware Streets in eastern Lawrence that is the site of a proposed loft development project. Commissioners will consider approving a resolution to declare the city's "intent to issue" bonds to allow for a sales tax exemption for construction materials the project.

City Commissioners on Tuesday will consider declaring an intent to issue bonds to allow for a sales tax exemption for the developer of a proposed apartment development in East Lawrence’s Warehouse Arts District.

Commissioners will consider adopting a resolution that will declare the city’s intent to issue industrial revenue bonds in the principal amount of $11 million for the 9 Del Lofts II affordable housing development at 716 E. Ninth St. The project, which would be built on a parking lot on the corner of Ninth and Delaware Streets, would include six live-work units and 39 one-bedroom units, with a minimum of 24 of those one-bedroom units to be set aside as affordable housing.

The IRBs the city would issue are part of a tax incentives plan for the development which was approved during a June commission meeting, as the Journal-World reported. Flint Hills Holding, the developer of the project, also applied for a 95% Neighborhood Revitalization Act property tax abatement over 15 years on the valuation increase resulting from the development. While the city approved the initial NRA plan, it will still be presented to the Douglas County Commission and the Lawrence school board, where each body will make independent decisions on whether they want to participate in the plan.

According to a city memo, city staff planned to present this resolution when the final NRA returned to the commission for final approval; however, the city decided to present this to commissioners now “to enable Flint Hills Holdings to be as competitively positioned as possible” in the review for the final funding round for the state’s 9% affordable housing tax credits.

During the previous June meeting, a representative for the development told commissioners the incentives requests for the project were specifically designed to enhance the competitiveness in receiving those tax credit funds. The project has received other financial support previously, including $450,000 from the City’s Affordable Housing Trust Fund, as the Journal-World reported.

The item is a part of the City Commission’s consent agenda, which is usually considered under one vote unless a commissioner requests to remove the item for separate vote and discussion.