By Chris Pannbacker Mar 5, 2025
The development of Koester Block commercial buildings received major news last week with the award of $650,000 in Moderate Income Housing funds to the city of Marysville and $384,000 in Kansas Housing Investor Tax Credits to Frontier Development Group, the project’s developer. Broadway Lofts, the project name, is described as a historic rehabilitation project for 12 apartments in the Kansas Housing Resources Corporation awards documents.
The project was among 15 housing projects across Kansas, which include proposed rental townhouses, single family homes, duplexes, triplexes and multifamily rental units, that received funds in this round of awards.
Developer Tyler Holloman of Frontier Development Group, Manhattan, called the awards “a major milestone” for the Marysville project.
“This means the redevelopment project will be moving forward,” Holloman said.
Mayor Todd Frye said, “I think it is great.”
The announcement will allow the project to keep moving forward, he said, on a solid time schedule for the city.
“It is good news for Marysville,” Frye said.
Earlier this month, the Koester Block project received a $300,000 Community Development Block Grant to address infrastructure improvements to the commercial buildings.
“KHRC (Kansas Housing Resources Corporation funding is a critical component of the capital stack necessary to complete the Koester Block project, specifically the residential portion (upper floors). CDBG funding will help us make infrastructure and commercial (first floor) renovations,” Holloman said. “Together, these two funding sources will make this project feasible and will allow us to fully renovate all areas of the building, complete with all modern amenities and preserving these amazing buildings for generations to come.”
The Moderate Income Housing funds serve the needs of moderate-income households that typically don’t qualify for federal housing assistance, according to the Kansas Housing Resources Corporation website. These funds are awarded to cities and counties with populations of fewer than 60,000 to develop single or multifamily properties for ownership or rental. The program funds new construction, rehabilitation or projects converted from another use.
The Kansas Housing Investor Tax Credit program brings housing investment dollars to communities that lack adequate homes. Housing development complements economic development, enabling communities to attract businesses, employees and new residents, according to the website. Communities with a population under 8,000 can apply for $35,000 per unit. Holloman said Frontier will sell the KHITC investment tax credits and use the proceeds from the sale for the renovation of the buildings. Both the MIH and KHITC funds will be used for the project’s residential portion.
Holloman said that while the funding has been awarded, it has not been received.
“We still have several steps before any funds will actually be received. Currently we’re still working on final approval of our historical renovations. Once those are approved, we’ll work with the city to obtain building permits, hopefully by this summer, with construction beginning this fall if there are no unexpected delays. Once construction begins, we’ll work with KHRC to start issuing the funding,” Holloman said.
Also awarded, the city of Manhattan and Frontier Development Group received funds for an infill housing project in Manhattan to build 34 duplexes and six townhomes in Manhattan. Infill housing projects are designed to bring homes to vacant lots within a city. The award was $650,000 in MIH funds and $1.2 million in KHITC funds.
Projects were funded in Colby, Beloit, Little River, Baldwin City, Lansing, Osawatomie, Caney, Chanute, Parsons, Garden Plain, Greensburg and Kinsley. A $700,000 Revolving Loan Fund award was part of the total package for the city of El Dorado.
Total awards in this round of funding were $8,180,854 in MIH funds, $5,394,000 in KHITC funds and $700,000 in revolving loans funds. The projects are to provide a net gain of 229 affordable housing units in Kansas.
Holloman said he appreciates the continued support of everyone involved including the city administrator, city council, the OneMarysville director and everyone who wrote letters of support for the applications.
“We’re excited to get started and thrilled to be working in such a great community,” Holloman said.
