MARC JACOBS
Hutch Post
The Hutchinson City Council on Tuesday evening advanced several major development and infrastructure items — including approval of the city’s first upper-story Reinvestment Housing Incentive District (RHID) for the redevelopment of the historic Landmark Building at Fifth and Main.
Landmark Apartments RHID Approved
Dave Sotelo, the city’s Director of Strategic Growth, presented the plan for the Landmark Reinvestment Housing Incentive District, a Kansas program designed to help developers convert unused upper floors of downtown buildings into housing.
“This is our first upper-story RHID,” Sotelo said. “When someone invests in turning upper floors into apartments or lofts, the property value increases. The added property tax — the ‘tax increment’ — is then set aside for 25 years to reimburse the developer for eligible housing construction costs.”
Sotelo noted that the City Council declared a housing shortage in January 2025, a necessary step to qualify for the RHID program. The Kansas Secretary of Commerce later approved the district in March and reaffirmed its eligibility in July.
Developer Justin Parjan of Pomeroy Development said construction is progressing rapidly. “We’re over halfway through drywall,” he said. “NBC and the local subcontractors have done fantastic work. This will be my third upper-story RHID project in Kansas, and I’ve been blown away by the progress here in Hutchinson.”
He added that the project’s “capital stack” — its mix of funding sources — includes multiple layers: developer equity, long-term debt, and incentives such as Kansas Housing Investor Tax Credits, a local ARPA housing grant, and a State Heritage Trust Fund grant.
Following a public hearing with no opposition, the council unanimously approved the ordinance establishing the district and development agreement. A 30-day protest period will now open for the county and school district, the only taxing entities eligible to formally object.
Wastewater Treatment Plant Upgrades: $18 Million Plan
City Engineer Evan Patterson presented a public hearing on Project No. 1 — Wastewater Treatment Facility Improvements, part of the city’s State Revolving Fund (SRF) loan application to the Kansas Department of Health and Environment (KDHE).
Patterson said the improvements target aging and high-risk components at the wastewater treatment plant, many of which are original to the facility. The $18 million project includes:
• Replacement of influent pumps
• Electrical and safety upgrades to the digester complex
• Roof and mold repairs at the administration building
• Replacement of centrifuge equipment
• Headworks upgrades for grit and rag screening
• Clarifier and sludge system rehabilitation
“These are the items rated either ‘poor’ or ‘emergency,’” Patterson said. “They’re essential whether we decide to rehabilitate this plant or eventually build a new one.”
Patterson said the city plans to apply for a 20-year SRF loan at 60% of market interest rates. The loan would be repaid through future sewer rate adjustments estimated at $3.40 to $6.80 per month for an average household.
The council approved the resolution authorizing the loan application. Patterson noted that final design and construction would take several years to complete.
Sewer Lining Project to Extend Infrastructure Life
A second SRF application, Project No. 2 — Sanitary Sewer Collection System Rehabilitation, was also approved. The $2 million project will line approximately one mile of existing sewer mains along F Street and Van Buren Street, plus rehabilitate 17 manholes.
Patterson explained that the process involves inserting a flexible liner into the existing pipe, inflating it, and curing it in place. “You’re not replacing the pipe — you’re giving it a new interior that extends its life by about 30 years,” he said. “It also avoids major street excavation.”
Replacing the same pipe would have cost about $5.5 million, he said, making the lining option a cost-effective alternative. The project will also be funded through sewer utility rates, with an average monthly impact of 30 to 60 cents per customer.
Unsafe Structures and Parks Updates
Building Official Jason Lady provided updates on six properties previously declared unsafe or dangerous. Several property owners have made progress toward repairs or demolition, while others will move toward city-led action if no improvements are made by December.
Later in the meeting, Parks and Facilities Director Justin Combs presented plans to replace the aging playground at Fairgrounds Park with a new two-to-five-year-old play structure, shaded area, and poured-in-place safety surface. The project cost of $161,000 was made possible through a vendor grant and budget savings.
The council also heard extensive discussion on future pickleball court improvements at Rice Park. Players advocated for resurfacing and better lighting to make the courts usable after dark. City staff agreed to review lighting options and potential upgrades before the next budget cycle.