A new workforce housing apartment complex will soon be making its way to Kyle.
On Nov. 5, the Kyle City Council approved a Memorandum of Understanding (MOU) for Kyle Dacy Lofts, a proposed workforce housing complex, by a 4-3 vote.
However, debate ensued over whether more projects like Dacy Lofts should be approved in the future and if procedures for these complexes should change. Council members Dex Ellison, Shane Arabie and Daphne Tenorio voted against the deal for various reasons.
NRP Holdings, LLC will be responsible for developing the 300-unit complex which will house those who make an annual income of no more than $56,700, which is 60 percent of Kyle’s median household income.
While Kyle Dacy Lofts will not pay county or state taxes, developers will pay a PILOT fee of $2,111,821 over 15 years to the city of Kyle. The city and the developers determined the amount after negotiations, as city staff “felt it was pertinent to negotiate” the payment to replace the city taxes that will not be paid. City officials say the amount is near the total number of taxes the developers would pay to the city.
Kyle Mayor Travis Mitchell said he was in favor of the project as there will be a fee paid in place of property taxes. All other exemptions for the project will also come from the federal government, Mitchell said.
“Affordable housing can be achieved through affordable development … it is incumbent upon the council to determine how they vote on these projects as they come and not predetermine if workforce housing is good or bad,” Mitchell said.
Arabie questioned if council should designate a specific zone for these projects, requiring them to be built in the same general area. Mitchell echoed the idea that these complexes belong in the multifamily housing zone. While no decision was made for future zoning requirements, the Kyle Dacy Lofts project will continue as planned.
“How many other places would we like to put these,” Arabie asked Nov. 5. “The other districts don’t answer. Let’s make a special district. If no one is objecting to these, why aren’t we requesting this type of housing if we have a need for it. Our comprehension plan has never addressed this type of housing.”
During deliberation, Mitchell said he is against traditional subsidized housing as it comes at a financial cost to the city. With the Dacy Lofts project, Mitchell said the county and the federal government are putting in the additional finances and tax breaks, which is how the project secured his vote.
Tenorio said the complex was priced too high for the families it intends to serve, which is why she voted against it. Tenorio was concerned proposed prices for a one bedroom apartment is “still very high at 60 percent of median income.”
Tenorio was worried city leaders are leaving out an “integral part” in seeking other housing options. She cited public housing, which is “something as a council we need to start talking about,” and the Section 8 Voucher program.
“I’m very uncomfortable with the fact that we’re not communicating and looking into other options for our citizens right now,” Tenorio said.
