City of Buffalo refuses lease with private, affordable housing company

BUFFALO — Buffalo City Council voted unanimously Tuesday not to enter into a lease agreement with a private company seeking city property on which to build an income-restricted apartment building.

In June, Housing Solutions, LLC., a Missoula, Montana-based company, approached the city about a 99-year lease of city owned land on which to build an income-restricted apartment building. The city council hosted a public hearing at its meeting Tuesday to gauge public sentiment about the project and to satisfy state statute, which requires the city to host a public hearing before entering into a lease.                 

At the meeting, the two biggest issues for residents and council members were the land's location and the city's involvement. The company has completed several other projects similar to the one it proposed for Buffalo, but those projects were completed on private land.

"Every other project they've done, they've bought land," Councilman Scott Madsen said. "I'd be fully supportive of this project if they want to find a piece of land to purchase someplace else." Madsen is the city's liaison to the Johnson County Community Foundation, a non-profit that has been working to address housing needs in Buffalo.

Housing Solutions asked the city for an option to enter into a 99-year lease of a piece of city-owned land, offering to pay the city $10,000 a year.

Last year, Housing Solutions approached the city with an offer to lease the land for $100 a year.

The company said it would use the lot to build a 24-unit apartment building for households that make 30% to 50% of the median household income in Johnson County. Based on current estimates in the company's proposal, that's between $25,770 and $51,540 for a three-person household.

If the company secured an option to lease from the city, it would then apply for a Wyoming Community Development Authority tax credit to fund the project. The company needed an option for a lease agreement so that it could submit its intent to apply for the tax credits by the deadline in late August. If the WCDA funding was secured, then the company would want to enter into the lease with the city.

Johnson County Community Foundation Chairman Jerry Spiering and city building inspector Terry Asay emphasized at the meeting the need for all types of housing in Buffalo.

The property in question is located alongside South Burritt Avenue, near Cloud Peak Elementary School. The company has said that while finding an affordable lot near city services has been difficult, this lot is in the ideal location to score highly on the WCDA tax credit scoring sheet. Scores are partially determined based on where proposed developments are located in relation to nearby hospitals, shops and schools.

Sue Clinton, who lives in the surrounding neighborhood, said the part of South Burritt Avenue near the lot already has enough traffic during the school year as is, and the development's location could only make that worse.The congestion is almost dangerous, she said.

"There's no dispute that we need affordable housing in Buffalo; that's not our issue. What we see every day, every school day, the congestion on that street, you guys would not believe it," Clinton said. "It's bad enough as it is."

Asay said the property's location is ideal for a project like the one Housing Solutions is proposing. He said both the city's comprehensive plan from 2007 and the engineering company currently working on a land use plan for the city corroborate that point. The exits off of the property could also be designed in a way to mitigate traffic impacts on South Burritt, Asay said.

Another resident in the surrounding area, Louie Mullen, shared concerns at the meeting that the council would be rushing a decision if it were to enter into a lease with the company.

“You should have a year at least to consider a 99-year lease. You should have your attorney be talking to the community. The council should be reaching out to members of the community. We should not be voting on this in a meeting with really no notice," Mullen said.

Most of the council members had already voiced their apprehension about the proposal in previous meetings.

Councilwoman Myra Camino raised concerns about the city entering “the housing business." Travis Lawrence, a member of the Johnson County Community Foundation, said there are other options to address the housing needs in Buffalo.

"Right now, I guess there's a proposal on some land in the city. I don't know if that in itself is the direction you want to go," Lawrence said. "But the city also has other tools that you guys can use to incentivize, whether that's water and sewer taps, discounted building permits, things like that. But it would have to be a discussion."

This story was published on July 18, 2024.