By: Cole Bertelsen
Posted On: Oct 7, 2025
The Manhattan City Commission on Tuesday unanimously approved three requests related to a moderate-income housing project.
The action approves use of grants and tax abatements for the Manhattan Infill Housing project for two multi-family developments. The LK Townhomes site is on Little Kitten Avenue North of Kimball Avenue, and Lee Mill Village is in the Miller Ranch neighborhood.
Developers revised the plan after the city approved its use for Reinvestment Housing Incentive District, but the Riley County Commission vetoed the project in June.
“Since it has changed, (the project) still includes 40 units,” said Stephanie Peterson, director of community development. “Those units are going to be three bedroom, two baths. There are 28 units that are at the LK Townhomes site, and then 12 at Lee Mill Village. There are going to be 22 for-sale units at LK and and Lee Mill Village combined. And then the 18 rental units for this project are all contained in LK.”
The city confirmed that the housing units would not be permitted for use as short-term rentals in any capacity for a 10-year period.
One of the requests approved by the commission provided a tax abatement for 18 of the homes.
“After the abatement period ends, those 18 rental units, after that 10-year period, would come online roughly $120,000 a year,” said Tyler Holloman, a developer with Frontier Development. “What that looks like in total, on years 11 and on, would be about $266,000. That is making some assumptions. There’s, I think, a 2% appreciation factor. There are some variables that go into that, but roughly a $266,000 annual property tax on the full project.”
Commissioner Peter Oppelt said the lots’ current states contributed to his support of the housing project.
“I do know the lots on Little Kitten have lost value, at least since last year,” he said. “They are now in a state where they are losing value year after year, and without some kind of development, that’s not going to stop. So I consider that part of my decision making that without something changing, they’re going to continue to lose value, and we will collect even less than $1,000 a year from them.”
The city approved issuing Multifamily Housing Revenue Bonds for the LK Townhome site and authorized execution of an economic development agreement for the property tax abatement with Frontier Development Group, LLC; Frontier Construction LLC, and Manhattan Infill Housing LLC for the LK Townhome site.
The commission also voted to allow city officials to make an agreement with the Kansas Housing Resources Corporation for a moderate-income housing grant for LK Townhomes and Lee Mill Village sites.
Finally, it approved a Workforce Housing Sales Tax grant agreement with Frontier Development, Frontier Construction and Manhattan Infill Housing for both sites and amend the Land Transfer and Development Agreement between the city and Frontier Development for the Lee Mill Village site.
According to meeting documents, for the next 10 years, the taxing entities will receive property taxes ranging from $4,334 and $6,723 from the 18 rental units with the property tax abatement at LK Townhomes. In year 11, those 18 units would generate an estimated $108,062 in property taxes. The 12 units at Lee Mill Village and 10 owner-occupied units at LK Townhomes will continue to generate property tax.
The $1.45 million grant is from the Workforce Housing Sales Tax fund.
In other business, the commission updated its agreement with the local firefighters union. Under the memorandum of understanding, employees of the fire department will be entitled to the approved 2.4% cost-of-living adjustment offered to other city government employees for 2026. The agreement expires at the end of that year.
Commissioner Jayme Minton abstained. Minton told The Mercury last year that because her husband is a city employee, she cannot vote on some items that could create a conflict of interest with the fire department.
