Plans to convert Iola’s three former elementary schools into housing took a big leap forward on Monday.
School district officials approved a pre-development agreement with BNIM, a Kansas City, Mo.-based architect and design firm that wants to use a combination of tax credits, grants and other financing to convert the schools into apartments.
BNIM has spent the past few months exploring their options for the buildings, both from a logistical and financial standpoint.
Their hope is to invest about $20 million into all three of the schools, converting them into around 61 mixed-income apartments with the possibility of other types of housing or amenities on the properties.
Everything looks good, James Baker with BNIM told board members. In fact, the financial picture is helped by changes made during the Kansas Legislature’s most recent session that will expand opportunities for housing development.
“State law changes added a tax credit that hadn’t been in Kansas but was in different states,” Baker said. “That helps this project move forward, as well as additional changes in state law regarding other tax credits and laws that make houses easier to build and more affordable, such as the Moderate Income Housing grant.”
The changes increase the likelihood of success for BNIM, he said.
“Our plan hasn’t really changed, but we’ve been exploring new options to enhance and support the project.”
The group also received preliminary construction estimates, which Baker did not reveal, that were more positive than expected in light of recent supply chain issues.
From the beginning, BNIM made it clear their plans would rely on obtaining various types of financing, including a historic designation for the building that will make them eligible for certain tax credits.
The process could take years and is a bit of a gamble. So far, all agreements between BNIM and the district have included clauses that allow either party to end the deal if things don’t work out.
School board member John Wilson asked if any of the tax credits would go to local financial institutions. Baker said they likely would be offered locally, which could benefit the community.
Board member Robin Griffin-Lohman asked about requirements about winterizing the buildings when not in use.
Baker said it’s important to keep vacant buildings in the best possible shape. Two of the buildings, McKinley and Lincoln, are being leased to other organizations this year.
That’s actually very positive, Baker said. Keeping the buildings in use and well-maintained will make the remodel process easier and reduce the need for winterization work, aka “mothballing” the building.
