County Weighs Support for Proposed Rural Housing Incentive District

County Administrator Matt Stiles asked commissioners for early direction on a proposed rural housing incentive district tied to a new development, telling them staff has no objections but wanted to gauge the commission's view before responding to the city.

Stiles said the proposal is in an early developmental stage with few details available, other than that it is in a platted subdivision area described as a greenfield development. He said it qualifies for the moderate income housing tax credit program, meaning it would include a moderate income housing element.

He explained that a rural housing incentive district effectively freezes property tax at its current level, with any increment created by the development going back to the developer to pay bonds or reimburse infrastructure costs, typically over about 20 years with a 22-year maximum. Stiles said the districts he has worked with previously ran between 8 and 15 years.

Commissioners raised questions about tax incentives and the impact on county revenue. One commissioner expressed concern about the amount of construction and development taken off the tax rolls and the county's lack of a sales tax benefit, saying, "I hope our city fathers are aware of what that does to us." Stiles said the district must be signed off by taxing entities and school districts and that the county has the opportunity to comment or take affirmative action to reject it, with the default being to take no action.

Stiles noted this proposal differs from a prior development near Schilling and Ohio, where the county used ARPA funds to help with infrastructure and could recoup some of that investment; the new proposal seeks no upfront investment. Commissioners expressed some hesitation but no significant objection, and Stiles said he would relay that to the city so the process could proceed.