A Kansas City taxing authority on Thursday approved the issuance and sale of up to $30 million in Multifamily Housing Revenue Bonds to help finance acquisition and construction of the Second and Delaware apartment project in the River Market.
The authorization by the Planned Industrial Expansion Authority is part of the financing needed by developer Jonathan Arnold for the residential complex that’s earning national attention for its innovative energy efficiency and “lean construction” processes.
The $59 million project, which will create 276 market rate and affordable apartments plus public green space, also is being financed with federal and state low-income housing tax credits; a fixed-rate, $48 million government-insured mortgage loan; and investor equity.
The low-income tax credit deal requires one-fifth of the Second and Delaware units to be allocated for qualified households earning 50 percent or less of the median income for the area.
The expansion authority’s action exempts sales tax on the project’s construction materials. The bonds will be available for public sale at a time to be announced by the agency through its bond counsel, Gilmore & Bell PC.
The apartment project previously received from Kansas City a 10-year, 100 percent property tax abatement followed by a 15-year, 50 percent abatement on the development’s added value. The developers agreed to payments in lieu of taxes of $20,000 a year.
The city also committed $2.9 million in street and green space improvements next to the apartments.
The project aims to begin accepting tenants in early 2017.