Efforts to transform two of Iola’s former elementary schools into much-needed housing continue to advance, though construction remains at least several months away.
USD 257 Superintendent Stacey Fager said BNIM, the Kansas City-based architecture and design firm leading the redevelopment project, has completed survey work and engineering studies and has toured the buildings with its design team. The firm is now focused on securing additional financing needed to move the project forward.
“They’re still in the process of securing a lot of the tax credits,” Fager said.
Additional funding opportunities became available as the project moved through the historic designation process. The former schools are expected to benefit from preservation programs similar to those used for other properties listed on the National Register of Historic Places.
Funding for the first phase includes $850,000 in Low Income Housing Tax Credits and $850,000 in Historic Tax Credits. Private equity firms have agreed to purchase the credits, generating an estimated $19 million for the project.
Sterling Bank of Kansas City provided a $12 million bridge loan to support construction, while the Health Forward Foundation contributed $500,000, split evenly between a loan and a grant.
THE $20 MILLION project calls for 49 apartment units of varying sizes between the two buildings, including 10 duplexes at McKinley. Thirty-three units will qualify as low-income housing, with the remaining units rented at market rates.
Lincoln Elementary remains under consideration for a future redevelopment effort and could eventually be converted into housing or another community use.
The project gained significant momentum last August when BNIM secured funding through two tax credit programs administered by the Kansas Housing Resources Corporation (KHRC).
The successful funding application was a breakthrough after BNIM’s previous attempts to secure KHRC assistance in 2023 and 2024 fell short. BNIM partnered with Thrive Allen County and USD 257 to develop the proposal. The project’s success was aided by several factors, including Iola’s rural status and demonstrated housing needs.
The school district also strengthened the application by selling the buildings to BNIM for $1 apiece, significantly reducing acquisition costs.
THE HOUSING conversion effort traces its roots back nearly a decade. As plans emerged for a new elementary school, residents expressed concern about the future of the three buildings.
District leaders recognized that preserving and repurposing the schools could help build support for the district’s $35 million bond issue, which voters approved by a 2-to-1 margin in 2019. Much of the bond funding was used to construct the new Iola Elementary School.
Working with Thrive Allen County, school officials connected with BNIM and shared examples of successful school-to-housing conversions with local residents. In 2021, the district, BNIM and Thrive formally joined forces to pursue redevelopment of McKinley, Jefferson and Lincoln.
The three schools were vacated in 2022 following the opening of Iola Elementary School. Since then, Lincoln has continued to serve a variety of community needs. The building houses day-school programming for the ANW Special Education Cooperative during the school year, with specialized personnel utilizing classroom office space. Southeast Kansas Mental Health Center also operates its Southeast Kansas Achievers (SEKA) program out of Lincoln, providing after-school programming designed to help youth develop social and behavioral skills.
With McKinley and Jefferson largely vacant as redevelopment plans move forward, Daniels Auction Service has utilized space at Jefferson for several online auctions in recent months.
