by Tracy McCue, Sumner Newscow — The Wellington City Council voted 4-2 a resolution of support to the development of a 48-unit multi-family complex at Settler’s Creek – a housing addition, west of Woodlawn Ave. and south of U.S. 160 in east Wellington (see proposed plans below). The council earlier approved 6-0 a resolution of support for the proposed 42-unit apartment complex at the Wellington Junior High building.

Now the developers of both proposed complexes will submit an application to the Kansas Housing Tax Credit program hoping to procure tax credits which “provides the private market with an incentive to invest in affordable rental housing.”

Mind you, what the Wellington Council passed Tuesday night was nothing more than a “letter of support” that is part of an overall package sent to the Kansas housing organization. If the housing incentives are approved, then the developer(s) can use those credits as cost reductions that in theory will ultimately lower rental prices.

If the housing credits are turned down, as was the case last year with Gary Hassenflu of Garrison Properties with the Wellington Junior High, then the developer will need to decide to build without housing incentives, give up, or try again in the future. In November, Hassenflu decided to try again for the tax credits to refurbishing the Wellington Junior High after being turned down in May.

Both developers were on hand Tuesday to procure the council’s support which obviously is essential in the application process.

Jim Moore of Affordable Housing Group/Zimmerman Properties of Springfield, Mo. was there to promote the building of apartments on the east end of Settler’s Creek. Hassenflu was present to promote the junior high.

Moore stated the two developers were in competition to get these tax credits.

“About one in five who apply actually get these tax credits,” Moore said. “They are very, very difficult to obtain. But what Wellington has going for it is we are two very reputable developers with a long history of good service.”

Moore said his company is proposing one, two and three bedroom apartments ranging from $450 to $750 and will be a $5 million investment. This was comparable to what Hassenflu is offering at the Wellington Junior High.

This is where the proposed Settler’s Creek apartment complex would sit if built.

A third group of developers, Jason Van Sickle of Wichita, is also wanting to build apartments in Wellington. Van Sickle is wanting to develop a 192-unit apartment complex east of Wal-Mart. Unlike the two developers on Tuesday night, Van Sickle is not applying for housing credits. The council recently annexed and rezoned property for that proposed complex.

Wellington City Council member B.J. Tracy asked Moore whether he was aware that three different developers were looking to develop multi-family rentals in Wellington.

Moore said the Van Sickle apartments will be a different clientele – a higher income group. He said his properties are for families at or below 60 percent of the area income median.

Tracy then asked whether that will eventually lead to subsidized or low-income rentals, especially if the apartments do not rent. Moore said this will not happen and his company has never done so in the past at other facilities built by the Affordable Housing Group/Zimmerman Properties.

Moore said the company determined Wellington to be a good fit based on an in-house housing study done. He said the study determined there was a significant number of people making this income within certain milage of the proposed location.

Realistically, Moore said the Kansas Housing Department will reward one of the two apartment properties – either the Wellington Junior High or at Settler’s Creek – or neither. He anticipated Wellington could get two of the three proposed complexes but won’t get all three based on the population density of the town.

This is the proposed site looking east toward Woodlawn Ave.

The neighbors 

While the Hassenflu Wellington Junior High apartment proposal received no objections and easily passed unanimously by the council, this wasn’t the case for the Settlers Creek addition that generated responses from five property owners in the area, and one prospective buyer.

Settler’s Creek has had a rather troubled history. The first of three housing developments in Wellington, the develop took advantage of the city’s housing incentive program only to default. The city of Wellington is now the owner of the housing complex. While there have been five homes built there, there is plenty of open real estate with an estimated 20 to 25 empty lots. The proposed apartments will actually sit on a cul-de-sac where no lot has been sold.

Allen Keller, a resident of the addition, was the first to speak and said building at Settler’s Creek was one of the worst investments ever made. He said he was the first to build and paid full value for the home at $137,500 with the promise of a scenic view and a manicured creek. But those promises weren’t fulfilled. That coupled with the housing market collapse in the late 2000s makes him think he may never get a good return on the investment.

He worried a proposed apartment complex in the neighborhood could further reduce his property values.

It was a sentiment echoed by the property owners at the meeting.

Moore responded later that devaluing property values simply isn’t true. There are no studies that reveal that property values decrease based on the construction of multi-family dwellings nearby.

Tony Farley, another neighbor, was upset about the lack of communication with the developer and the city. He also questioned the safety of having an apartment so close to single-family dwelling with small children.

Richard Acton of San Diego said he is selling a house at 834 Homestead Drive, which was owned by his father, who is deceased. He said the house is about to be purchased but the prospective owners are wanting to pull out because of the proposed apartment complex. Mike and Brenda Leverich, the prospective owners, were there. They wished to purchase the house and build a garage and in-ground swimming pool on the east and west side. They did express that if an apartment complex did come in they would pull out of the prospective purchase.

Wellington council member John Brand, who lives north on Huron Court by Hargis Creek, said he too was upset because they were building duplexes in his neighborhood. But he found that after they were built, the neighborhood took off and there was significant growth.

Council member Jim Valentine said this sounded like a train wreck and there needs to be more time to study the proposal. He tabled the motion, but it died from a lack of second. Moore said tabling is not an option because deadline is approaching for him to submit the application.

Tracy said he was torn between the mistakes made in the past and what is considered potential growth for Wellington. He said he has been accused of being anti-growth and anti-progress. But he said the council made mistakes in the early 2000s with this housing development that has cost the city significantly by providing housing incentives. The developer received the incentives, built the addition, but was unable to sell enough lots and eventually defaulted. The city bought the property back and now is sitting with empty lots. Tracy does not want to make the same mistake again.

Mayor Roger Stallbaumer put an end to discussion after going longer than an hour. Voting for the resolution of support was: Brand, Kelly Green, Vince Wetta and Jan Korte. Voting against the resolution was Tracy and Valentine.