photo by: Bremen Keasey/Journal-World

Lawrence City Commissioners listening to a presentation at City Hall, 6 E Sixth St., during Tuesday night's meeting.

Lawrence city commissioners on Tuesday pledged additional financial support to assist the development of an affordable housing project in East Lawrence’s Warehouse Arts District with one key contingency.

The commissioners voted unanimously to provide $80,000 for a fee waiver for the 9 Del Lofts II housing development at 716 E. Ninth St. — as long as the project adds back three more affordable units lost during the planning process.

The developer, Tony Krsnich of Flint Hills Holding Group, had requested $80,000 from the Affordable Housing Advisory Board to make it easier for the development to get low-income housing tax credits, but they opted not to fund his request, as the Journal-World reported. Krsnich told the commissioners during the last commission meeting getting approved for the fee waiver would be a 10 point difference in the rubric, which could make the difference for the 9 Del Lofts II project coming to fruition.

Part of why it would be more critical was because of a drop in state funding in tax credits given to affordable housing developments. Gov. Laura Kelly signed in April a bill that eliminates, after 2025, a 4% tax credit that has been used by many projects in Lawrence and placed a cap of $8.8 million in tax credits that could be issued across the state in one year, as the Journal-World reported.

Some of why Krsnich’s request was not funded by the housing board was the fact that the last time he applied for the 9 Del Lofts II project, it was based on having 29 affordable units. But that application was now only proposing 26.

The commission discussed that shrinking number as well during its deliberation. Commissioner Kristine Polian said the city already funded the project based on the 29 units, and she wondered if the commission needed to give the waiver since “not one project in Lawrence” needed those extra ten points, yet still received state tax incentives.

Commissioner Mike Dever said that he dug into the project and found the reason the project was “downsized” to 26 affordable units was so the building complied with rules from the city’s Historic Resources Commission. He also noted the developer said some of the units that would be considered “market rate” would not be set at a price hundreds of dollars more than the rate of affordable units. In Dever’s view, that meant someone who “worked their way up” and made a higher salary wouldn’t be suddenly disqualified from the affordable rate either, so it could offer more flexibility and make sure people aren’t needing to move around.

Dever said that made him feel more comfortable with the change, and it was more about “maximizing (the city’s) chances of getting this” when funds were lower.

“The funding pool for these tax breaks are drying up, this is probably our last chance to get it,” Dever said.

Although Commissioner Amber Sellers said she understands the explanation of how some units would be slightly above the affordable rate, she said it seemed like a bit of “sleight of hand” when the city agreed to a project with 29 affordable units. That meant she and other commissioners wanted to provide the $80,000 based on that number. It was unknown at the time if Krsnich, who was not at the meeting, would find the caveat agreeable.

The project has already received a lot of local support. The City Commission voted unanimously in June to approve a tax incentives plan for the project that included issuing industrial revenue bonds for a sales tax exemption on construction cost and a 95% Neighborhood Revitalization Act property tax abatement over 15 years on the valuation increase resulting from the development, as the Journal-World reported. The County Commission and School Board also approved the plan as well. The project has received other financial support previously, including $450,000 from the City’s Affordable Housing Trust Fund in 2025, as the Journal-World reported.

In other business, commissioners voted to select the services of consulting firm Strategic Government Resources to help conduct the city’s search for a new City Manager.

The current City Manager, Craig Owens announced last month, he would be leaving his role in May 2026, and city staff has received proposals from three search firms to look for his replacement: Strategic Government Resources, MGT and CPS HR Consulting.

The commission ended up voting unanimously to select Strategic Government Resources as its chosen search firm. Strategic Government Resources’s fee for the search would not exceed $28,419, according to a city memo.

During discussion, commissioners said they felt the interest shown by Strategic Government Resources in working with the city was a nice detail. The firm’s CEO Darin Atteberry sent a letter to the commission prior to the decision — the only one of the three to do so. Additionally, a representative for the firm attended the around seven hour meeting in person.

Mayor Brad Finkeldei noted that the firm was already working in Kansas as it was currently running the search process for Olathe’s new city manager. The firm also helped Lawrence in its search for the new Economic Development Director and had extensive work with Fort Collins, Colo. — which Finkeldei said was a peer city in relative size and as a college town.