SPRING HILL, Kan. —City leaders in Spring Hill will soon consider creating a new tax district in an effort to create more housing options within the city.  

Developer Ad Astra Land Holdings, has requested the establishment of a rural housing incentive district (RHID).

The proposed Wiswell Farms Rural Housing Incentive District would contain approximately 139 acres of land. The district would be bound by Highway 169 to the west and Woodland Road to the east and stretch roughly from 191st St. to 199th St. 

Map of proposed rural housing incentive district.

The developer intends to create approximately 387 single-family homes and 180 units of multi-family housing.

The proposal also includes the extension of Webster Road from 191st St. to 199th St. and the construction of infrastructure needed to create single family homes within the district. 

If approved by the council, it would be the first RHID project in Johnson County.

A RHID allows the city to collect property tax gains created by new development and use the money to reimburse the developer for infrastructure improvements. 

To create an RHID the city must complete a Housing Needs Analysis, set the boundaries of the proposed district, pass a resolution to establish the RHID and apply to the Secretary of Commerce for approval of the district.

Typically a RHID allows the developer to collect tax revenue for up to 25 years, however the proposed agreement with Ad Astra would cap collection after 14 years. 

According to a feasibility analysis conducted by Baker Tilly Municipal Advisors, the proposed district is estimated to generate roughly $14,441,356 in property tax revenue over the 14-year term.

The developer anticipates construction of the single family homes will occur between 2024 and 2028, and construction of the apartments will occur from 2026 through 2027. 

The city council will host a public hearing to get feedback on the proposed district on Thursday, Nov. 17 at 7 p.m. at the Civic Center. After the public hearing the council will consider establishing the rural housing incentive district and entering into a development agreement with Ad Astra.