Archive for Thursday, June 28, 2001

Housing proposal awarded tax credits

June 28, 2001

The Kansas Department of Commerce and Housing has awarded tax credits to a Topeka-developer interested in building a 36-unit senior housing apartment complex in De Soto.

Last week, the Housing Department awarded a development called Valley Spring Senior Housing $2.8 million in tax credits. Developers use the tax credits to raise capital by selling them to institutional buyers, who in turn use the tax credits to offset taxable profits.

Housing Department spokesman Fred Bentley said Neighborhood Renaissance Foundation, is a partner in the Valley Spring development with Commercial Group of Topeka.

Commercial Group first expressed an interest in building housing in De Soto early this year. In January, Commercial Group President Sharad Doshi told the Explorer the company was interested in building a 40-unit multi-family apartment complex southwest of Starside Elementary. It also was interested in building a 48-unit senior housing apartment complex and 30-unit assisted-living complex to be located southeast of the 83rd Street and Kill Creek Road intersection.

The company requested rezoning for all three projects. The De Soto Planning Commission recommended rezoning for the multi-family complex, which would have required the extension of 91st Street, be denied.

Commercial Group also dropped plans for a De Soto assisted living facility after learning of Responsive Health Care's plans to add 32 assisted living units to its renovation of the closed Cedar Grove Nursing Home.

When asking the De Soto City Council's support for its tax credit application, Doshi agreed to seek planned development zoning for the Valley Spring complex. That will allow the city council to review the complex's site plan.

De Soto zoning and planning coordinator Jane Gordanier said Commercial Group representatives informed her last week that they received the tax credits and that site plans would be forthcoming.

The Housing Department will reserve the tax credits awarded to the Valley Spring project for about a year, Bentley said.

"It can take some time to jump through all the hoops get all the local approval, arrange financing and sell the tax credits," he said. "They have about a year to start building the project."

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