Possible tax increment financing on a planned subdivision south of Seward consumed the majority of Seward City Council's Nov. 17 meeting.
TIF attorney Andrew Willis told the council that because the CRA met previously but did not submit a plan, that council members shouldn't take action on the item at the meeting. Instead, what followed was an open forum. Members of the public in attendance voiced their concerns, as did some council members.
The proposed Arrowhead Estates, LLC would be sixth and seventh additions to the Seward Twin Oaks development with two lots. The submitted application would provide TIF for 29 units south of the Seward Rail Campus. That's to start the project while the ultimate goal for Arrowhead Estates would be over 100 units.
TIF has been granted and applied to housing developments throughout Nebraska but not yet in Seward.
The idea for the project originated from the Seward County Comprehensive Plan and a housing study conducted throughout the county that determined Seward would need to add an estimated 242 units by 2024 to accommodate an estimated 2.6% population growth. The study determined 47% (116 units) of new construction should be targeted to the workforce population. The study concluded Seward needed to add affordable housing options below $300,000. Arrowhead Estates was pitched to the council as a subdivision consisting of affordable housing. Thomas Katon, one of the developers, said he felt each lot's $215,000 assessed value was conservative and it would likely be closer to $250,000-$260,000.
It would be an estimated $3.3 million project, Willis said, when accounting for utility additions, streets, grating, sidewalks and additional infrastructure.
Concerns for the project came from the school district as well as a resident. Paul Duer spoke on behalf of the school board. He said there's concerns for school population. The project would bring additional students while some classes are already near capacity. Then there's the tax deferment as part of TIF, which wouldn't help the school district offset its growing population with more teachers or space.
TIF would defer taxes for 15 years from the project while 56% of the levy goes to funding schools every year. Property value could rise during that time, so some on the council said they'd like some sort of cap to maintain the project's purpose of affordable housing.
There were also concerns raised regarding traffic in that area along Highway 15 as well as property value inflation. New housing developments would raise values on existing properties nearby, potentially displacing residents who can't afford their homes to rise in price.
Seward Mayor Josh Eickmeier said multiple times the discussion was meant to identify what the project's benefit was, how it could benefit Seward and if it warranted TIF. He said he didn't want to paint the project with a broad brush because the main concern would be TIF essentially subsidizing development.
City Administrator Greg Butcher said infrastructure near the project could be, in part, paid for by the state but not to rely on that scenario at this point. The state would pay for lights and expansion on Highway 15 if a study concludes such action is warranted.
The next developments on the project are scheduled for December.
