Maybe the third time will be the charm.
Iola school board members voted to extend an agreement with BNIM, a Kansas City development firm, for a third year. The company hopes to convert three former Iola elementary schools into apartments and other types of housing, but will need to secure a mix of financing that includes historic and low-income housing tax credits offered by the state.
The first two tries at securing those tax credits were unsuccessful, with BNIM scoring well in the state’s application process but ultimately falling just short.
That’s the nature of grants, Thrive Allen County CEO Lisse Regehr told board members at a meeting Monday evening. Thrive has been working with both BNIM and the school district throughout the process. Thrive also is working with Health Forward Foundation for its help with the project.
Regehr assured board members her staff would assist BNIM even more diligently for its third try. The application process typically opens in January.
“I will ensure that every box is checked, everything is filled in and we’ve got a killer application,” Regehr said. “It usually takes at least two, sometimes three years for this particular grant. It’s a difficult one.
“I can’t make any promises because it’s a grant, but I can promise you we will look over every single detail. In hindsight, I wish we would have had this conversation last year.”
The project would convert all three former elementary schools — McKinley, Jefferson and Lincoln — into more than 60 apartments. Other types of housing, such as duplexes, could be built on the grounds, particularly at McKinley. The estimated cost when BNIM proposed the project in 2022 was around $20 million, with funding coming from the tax credits, other grants, loans and BNIM’s own investment. The housing would be mixed, with some set aside for seniors, low-income housing and about 30% of units offered at fair market rates.
Board member Tony Leavitt shared concerns about low-income housing restrictions that might limit workers from industries such as Gates Manufacturing or Russell Stover Candies. Regehr said she believes the guidelines would include some of those more moderate incomes, and mixed housing would be more sustainable.
Regehr said she’d like to see the project include offices where Thrive could staff a care coordinator. That person would be available to help residents with a variety of needs, such as applying for health insurance, food assistance and utility assistance, or helping someone find a health care clinic or work toward a plan for home ownership.
“We’re looking at a whole-health community model that truly would try to lift people up,” Regehr said.
In the meantime, the district must continue to maintain the former schools so they don’t fall into disrepair. Lincoln is used by the ANW Cooperative as a special education day school, and this year Southeast Kansas Mental Health Center moved its after-school program from McKinley to Lincoln. Those two entities pay for utilities and general maintenance such as mowing.
But it costs about $1,000 monthly to keep utilities at McKinley and $1,500 for Jefferson. Leavitt expressed his concern about those costs. He also wondered how much it would cost to demolish the buildings. A 2018 estimate prepared for the school bond election put demolition costs at about $600,000. That amount is likely to be much higher now, so Leavitt said he would like a new estimate.
Leavitt wondered if the board would ask BNIM to contribute to utility costs, but school board members Robin Griffin-Lohman and Dan Willis said they were afraid it would send the wrong message and “leave a sour taste.” BNIM is the only company that submitted proposals to develop all three buildings and has been working on the project for two years. In the end, Leavitt withdrew his request and the board voted unanimously in favor of the extension.
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