City Council signs off on Linwood apartment complex bonds

The Wichita City Council on Tuesday approved the issuance of $7 million in industrial revenue bonds for the Residences at Linwood, a low-income housing community on the city’s south side.

In a unanimous vote, the council essentially completed a process that facilitated the remodeling of housing units on the 22-acre property, in the 2000 block of South Hydraulic. A group headed by Brent Hurst purchased the complex in 2011, and a letter of intent to issue the bonds was approved by the council in 2012.

The units – 90 single-story four-plex buildings – were originally built by the Garvey family in the 1940s and 1950s to house aircraft workers and soldiers returning from World War II, according to city documents. The property had changed owners several times in the past two decades and had fallen into disrepair by the time the current owners took over.

“The apartments were all boarded up and were a real eyesore,” Hurst said. “The renovations represented a huge, four-year construction project, which we financed.”

Hurst said that the construction phase of the refurbishing project is complete and that the 360 apartment units making up the community are about 90 percent rented, adding that he expects all units to be spoken for in the coming weeks.

“We have five or six buildings yet to lease, and once that’s done in the next 30 to 60 days, the project will be complete,” Hurst said.

The bonds were purchased by Linwood’s owners, essentially allowing the group to gain a sales tax exemption on construction costs. The Linwood owners agreed to pay all costs of issuing the bonds, including the city’s $2,500 annual industrial revenue bond administrative fee.

Renters at Linwood, a Section 42 housing community under the government’s tax code, must qualify under certain income guidelines. Rent prices range from $375 to $550 per month depending on the unit, according to the Linwood website.

This story was originally published October 20, 2015 at 6:48 PM with the headline "City Council signs off on Linwood apartment complex bonds."