The long-awaited development of two former Iola elementary schools into housing units is taking a baby step.
USD 257 board members agreed Monday night to maintain the buildings through the end of the year as it transitions responsibility to BNIM, the Kansas City-based architecture and design firm which will convert McKinley and Jefferson elementary schools into living quarters.
Superintendent Stacey Fager told the board the process has taken longer than originally anticipated.
“Last year about this time we were hopeful that by this summer we would look at a transition,” Fager said. “It’s taken a little longer to get all the developmental plans in order to get to that.”
Fager said BNIM has been working on the plans and is expected to provide the district with another update soon. The current target is to transition the properties by the end of 2026, although that could extend into spring 2027.
FAGER SAID district maintenance staff continue to address problems as they arise, including roof and HVAC issues and water leaks.
“These buildings need HVAC replacements. They need roof replacements,” Fager said, noting that those same concerns were among the reasons the district ultimately pursued construction of a new elementary school through its $35 million bond issue.
The district must continue keeping the buildings functional while redevelopment plans progress. Fager pointed to heavy rains earlier this year as an example of the ongoing maintenance challenges, saying staff have had to address new leaks and other problems to limit damage.
BNIM has also been working through local requirements as it prepares for the eventual transition. Fager said representatives recently appeared before the city’s code enforcement officials seeking variances involving classroom sizes.
The redevelopment project has been in the works for years, with BNIM, USD 257 and Thrive Allen County working together to find a future for the former schools after the district moved elementary students into the new Iola Elementary School.
The project gained a major boost last August when BNIM secured $850,000 in Low Income Housing Tax Credits and another $850,000 in Historic Tax Credits through programs administered by the Kansas Housing Resources Corporation. Private equity firms agreed to purchase the credits, generating an estimated $19 million for the project.
Additional financing includes a $12 million bridge loan from Sterling Bank of Kansas City and a $500,000 contribution from the Health Forward Foundation, divided between a loan and grant.
The overall project is expected to represent an investment of roughly $20 million in the former school buildings.
Fager told board members the investment is significant given the age and condition of the properties.
“They’ve served a great purpose for the districts for almost a century,” he said. “With these low-income housing tax credits and historical tax credits, you’re looking at an infusion of around $20 million into these two buildings.”
THE redevelopment plan calls for 49 apartment units of varying sizes between the former McKinley and Jefferson schools, along with 10 duplexes at McKinley. Thirty-three of the units are expected to qualify as low-income housing, while the remainder will be rented at market rates.
