Senior housing developers in Kansas City, Missouri, are teaming with a local baseball organization to leverage tax credits in building a new independent living community.
Entrepreneurs Enterprises LLC, based in Overland Park, Kansas, is co-developing 40 duplex units of senior housing with MRE Capital LLC, to be located in the Martin City area of Kansas City.
The roughly $10 million project is being jointly pursued with a separate project seeking to develop a $12 million baseball stadium on an 18-acre site nearby. The developer for the site is Barnstormers Baseball, which works with young players aiming for college baseball scholarships.
While the two developments are not on adjacent sites and won’t be visible from one another, Entrepreneurs Enterprises CEO Maximillian Howell says working with Barnstormers will help maximize the efficiency of tax credits for the projects.
By using initial Low-Income Housing Tax Credits to purchase the land, Entrepreneurs Enterprises will be able to bring down the total costs to be utilized for the New Market Tax Credits.
“At the end of the day, we want to be financially efficient and have an efficient development, and leveraging tax credits can help up maximize these efficiencies,” Howell told SHN. “On a higher level, the tax credits we use will bring down the baseball developer’s costs.”
Though still pending approval, the joint proposals of the two projects also look to provide more of a boost to the economic stimulus of the Martin City area.
“From an economic perspective, the projects will serve as a catalyst to generate retail growth the area deserves,” Howell said.
Entrepreneurs Enterprises, together with MRE Capital, is applying through the Missouri Housing Development Commission (MHDC) Partnership Initiative program, which provides funding preference to co-developer proposals with mentor/protege relationships.
For the senior housing project, Entrepreneurs Enterprises is the protege, while MRE Capital is mentor and lead developer.
Written by Jason Oliva