Topeka approves TIF district and 20‑year tax rebate to back $13M rehab of Capital City Town Homes

The Topeka governing body voted unanimously April 21 to establish a tax‑increment financing district and approve a 20‑year Neighborhood Revitalization Program (NRP) rebate to support the $13 million renovation of the Capital City Town Homes at 21st and Adams.

Deputy City Manager Braxton Coffee told the council the owner’s financial plan requires the NRP plus‑20 to meet underwriting requirements and preserve long‑term affordability: “The developer needs a 20‑year NRP to be able to meet the underwriting requirements,” Coffee said, and staff recommended formation of a TIF district so the project could qualify for the extended rebate and meet the state’s statutory criteria for blight.

Developer Tony Kresnik of Flint Hills Holdings described a rolling rehabilitation meant to keep most units affordable and to limit neighborhood disruption. Kresnik pledged upgraded finishes and added security while extending affordability restrictions: “We’re keeping the apartments affordable in the same rent‑restricted program … and we’ve agreed to extend this restriction for an additional 30 years,” he said. Kresnik told the council the plan includes new windows, roofs, garage doors, fencing and additional cameras to reduce unwanted foot traffic.

Project details in staff materials and Kresnik’s presentation show 11 market‑rate units and roughly 36–38 units restricted at 60% of area median income (AMI). Coffee and the developer said the land‑use restriction agreement required for low‑income housing tax credits will preserve the affordable units and allow Section 8 vouchers to continue. Coffee added that the project has a rolling tenant relocation plan, with the owner paying moving costs and short hotel stays when necessary.

Tenants spoke at the public hearing, urging clearer and faster communication from management. “We didn’t get no information. We just said they sent out a letter saying we are to make the check payable to Cap City Town Homes,” tenant Khalila Coven told the council, asking whether rents will remain stable. Another resident, Georgia Kushenberry, said she and neighbors want safety and maintenance improvements but fear losing housing: “I can’t afford to go nowhere,” she said.

Council members pressed staff and the developer about rent‑restricted units, market‑rate units, and what protections are in the contract. Coffee emphasized events‑of‑default language in the city’s development agreement that allows withholding rebate payments if the owner fails to pay property taxes or maintain the property. The agreement does not rewind rebates already paid, but it allows the city to stop future payments while issues are remedied.

The governing body approved the TIF district, the NRP plus‑20 rebate structure (a 95% rebate to the developer with a 5% retention for administration), and the development agreement by unanimous votes. Council members emphasized that staff will follow up to ensure tenant notifications and relocation assistance are carried out as described.

Next steps: the developer will proceed under the agreed timeline for the rolling rehab and the recorded land‑use restriction will govern the affordable units. Staff and council said they will monitor compliance with maintenance obligations and tax payments stipulated in the development agreement.