photo by: H2B architects

A rendering shows a proposed mixed use building that would provide senior housing and commercial space near 11th and New Hampshire streets.

A $17 million project to build nearly 50 units of affordable housing for seniors along New Hampshire Street in downtown Lawrence won its key approvals from the state of Kansas on Thursday.

But the developer of the project is betting that’s just step No. 1 in a series of events that could transform the entire southern end of downtown.

“I got the good word today. It might be the best word I’ve ever gotten,” developer Tony Krsnich said of a pair of tax credit approvals from federal and state housing officials. “This is a big deal. This is way bigger than any deal that I’ve ever worked before.”

Krsnich’s New Hampshire Lofts project was awarded $8.9 million in federal affordable housing tax credits, plus $8.9 million in state affordable housing tax credits on Thursday. The tax credits are expected to provide the financing avenues to begin construction on the project by the end of the year, Krsnich said.

The project is slated for the vacant lot on the east side of New Hampshire Street, just north of the 11th and New Hampshire intersection and next door to a historic stone church building that has been converted to offices.

photo by: H2B Architects

A rendering shows a proposed mixed use building that would provide senior housing and commercial space near 11th and New Hampshire streets.

photo by: Chad Lawhorn/Journal-World

A vacant lot north of 11th and New Hampshire streets, pictured on Feb. 27, 2023, is the proposed site for a commercial/apartment project that would include affordable housing units for the 55-plus community.

Plans call for 49 apartments that will be rented to seniors 55 and older. All of the units will be rent controlled under terms of the state and federal tax credits. The three- to four-story building — which will be similar in style to the Penn Street Lofts building that Krsnich built in the Warehouse Arts District — also will include 15,000 square feet of ground floor commercial space.

Krsnich said he is excited about the New Hampshire Lofts project — “I couldn’t sleep last night knowing the announcement on these tax credits (was) going to be made,” he said — but what comes next may be even more meaningful in terms of downtown development.

When Krsnich finalizes the deal to purchase the land for the New Hampshire Lofts project, he also will be closing a land deal to purchase all of the former Allen Press property that is on the west side of New Hampshire Street. The Allen Press property includes significant amounts of frontage not just on New Hampshire Street, but also along Massachusetts Street. The pending deal will include the entire northeast corner of 11th and Massachusetts streets, which is a southern gateway to downtown.

Krsnich said he would actively begin work to redevelop that entire area along New Hampshire and Massachusetts streets.

“That is one of the largest development opportunities that will happen in downtown in a long while,” Krsnich said. “It might be one of the most impactful projects to happen in decades.”

photo by: Douglas County GIS map

The green stars show roughly where a new apartment/commercial building has been proposed for construction. The blue stars show former Allen Press buildings and property that could be redeveloped between Massachusetts and New Hampshire streets.

Krsnich hasn’t settled on how he wants to redevelop the southern gateway area. Instead, he now will start taking proposals from potential partners. He expects to receive interest on a variety of ideas, including upscale apartments, a grocery store and mixed-used developments that could include everything from offices to day cares to restaurants and more.

“You can dream up a lot of possibilities for that site,” he said. “We are interested in seeing what people come up with. We are interested in a partnership opportunity for the right plan.”

The first thing the site will be used for is construction storage for the New Hampshire Lofts project. Krsnich in February told the Journal-World he planned to tear the buildings down and use the lots for storing construction materials, if he won approval to begin the New Hampshire Lofts project.

But on Thursday, Krsnich said he likely wouldn’t immediately tear down the buildings. Instead, he’s been advised to use the buildings to provide indoor storage for the construction material needed for the lofts project.

Krsnich does have one final set of approvals needed from Lawrence City Hall before he will begin the New Hampshire Lofts project. He will file to receive a property tax rebate and industrial revenue bond issuance to help defray costs for the project. That is a similar incentives package to what Krsnich has received for other affordable housing projects he has built in the Warehouse Arts District in East Lawrence.

The city has made adding affordable housing units to the city’s inventory a high priority. City officials also have said they want the projects spread throughout the community. Krsnich said the plan to put affordable senior housing units in downtown was unique and would add a new dimension to downtown.

“They will be able to walk to shops, walk to restaurants, walk to South Park,” Krsnich told me in February when he announced that he was devoting the project to senior housing.

Importantly, the project has already won necessary planning and zoning approvals from City Hall.

Under the terms of the tax credits, the apartments will be restricted to people who make 80% or less of the area’s median income.

Krsnich said the project also would take advantage of a lot of existing infrastructure the city already has invested in. He said the project would use the city-owned parking garage that is less than a block away, although the project will have surface parking in front of the building and behind it, he said. The project also is along one of the city’s public transit routes.

As for the commercial aspects of the project, Krsnich said the building was designed to accommodate everything from law offices that want to be close to the Douglas County Courthouse to restaurants and shops.

If construction can begin on the project before the end of the year, Krsnich said apartments could be ready for residents by early 2025.

photo by: H2B Architects

A rendering shows a proposed mixed use building that would provide senior housing and commercial space near 11th and New Hampshire streets.