Abilene, Kansas Highlands and the Land Bank

Abilene, Kansas Highlands and the Land Bank

by David Dillner

As we approach a new year, I thought I would take a moment to discuss an issue that I have been working on since my arrival in Abilene about five years ago. The Abilene Highlands subdivision has been a topic of concern for the City as it seeks to craft a solution to the stalled development. There seems to be an opportunity that will hopefully allow the development to gather momentum despite the fact that the situation is far from resolved.

The Land Bank will take possession of the real estate known as the Abilene Highlands by the end of this week. The City has been in negotiations to have the property donated to the Land Bank for several months, and an agreement was reached last month that will allow the City to take ownership of the development. The property owner will no longer be liable for taxes or special assessments on the property.

The property will not have any special assessments or property taxes assessed against it as long as the property is held in the Land Bank. The City Commission will have the opportunity to forgive past delinquent special assessments or may decide to reamoritize the specials so the City may recoup its money at some point in the future.

The ultimate benefit to the City is that the property may be offered as an opportunity for development. Taxpayer liability will be reduced to the extent the City is successful in conveying the property to developers/builders that develop the property.

The City has also been negotiating a land exchange agreement with the partners of the Cedar Ridge development in Abilene. Cedar Ridge, LLP came to the City with a proposal to develop a part of the Abilene Highlands following a town hall meeting to discuss options for the development.

The Cedar Ridge proposal is to donate the undeveloped Cedar Ridge, Phase II to the Land Bank and exchange it for land located within the Abilene Highlands. The benefit to the City is twofold:  1) the City does not need to extend public infrastructure to serve Cedar Ridge, Phase II and thus not incur additional debt; and 2) the supply of developable lots in Abilene will not increase.

Cedar Ridge gets the benefit of having an area that already has infrastructure so construction may begin as soon as practicable. Cedar Ridge is also seeking tax credits through an affordable housing program administered by the Kansas Housing Resources Corporation. The entire transaction is contingent upon tax credits being awarded to Cedar Ridge; without the tax credits the transaction will not be completed.

There is still a considerable amount of work to be done before this transaction may be finished. The agreements need to be finalized between the parties and approved. The Kansas Housing Resources Corporation needs to consider the merits of the project for tax credits. The prospect of development occurring at the Abilene Highlands, however, may be on the brink of reviving this once and future development opportunity in Abilene.

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