Larry Parker thinks the Smith Hill housing project’s developers misled Richmond Common Council, and he’s not inclined to provide them with more than $7.5 million in infrastructure funding.
An ordinance authorizing a $7,560,000 forgivable loan was presented to council during its Aug. 17 meeting, and Parker renewed his objections that the project includes rental units. He indicated 98 townhomes would be rentals, despite council rezoning the 80 acres south of Backmeyer Road with the understanding there would be no rentals.
“They still plan on having rental units there, and nobody has approved the rental units,” Parker said. “I don’t see how we can possibly give these people this kind of money for something they misled us for from the very, very beginning. When it comes ready for vote, mine is a no. I can’t be misled all the time.”
The forgivable loan would include $4,330,000 in Regional Economic Acceleration and Development Initiative money, plus $3,230,000 from the city’s Redevelopment Commission as a required match. The match would also include the $1.1 million valuation for Reid Health’s land between South 37th Street and Garwood Road donated for the project. The money would fund infrastructure for the development’s first phase.
During its Aug. 18 meeting, the Redevelopment Commission approved the $3.23 million expenditure from its tax increment financing proceeds. In April 2025, council approved issuing bonds as the match; however, delays in receiving the READI funding enabled the Redevelopment Commission to accumulate enough cash to cover the match, negating the need for a bond, according to Beth Fields, the city’s director of strategic initiatives.
Council will have a second reading and a public hearing on the forgivable loan ordinance during its 7 p.m. Sept. 8 meeting in the third-floor chambers of the Richmond Municipal Building, 50 N. Fifth St., Richmond. That will come after the city’s Economic Development Commission also considers the ordinance.
Meanwhile, the Richmond Advisory Plan Commission has received the development’s petition for primary plat approval. The detailed development plan includes 167 single-family houses in four varieties and the 98 townhomes in 24 buildings. The plan commission is scheduled to consider the petition and conduct a public hearing at 5:30 p.m. Sept. 23, also in the city building’s chambers.
In 2024, council denied rezoning the land to enable a planned unit development when the 11th Street Development LLC proposal included more than 200 apartments, plus single-family houses. Council member Jerry Purcell said negotiations replaced the apartments with townhomes, and council approved the rezoning with the understanding it would include no rentals.
The original rezoning application, which Bryan Stumpf of 11th Street Development signed, says in part: “All of the homes in the neighborhood are for-sale homes.” Then, Stumpf said during an Aug. 5, 2024, project presentation to council: “The entire project is for-sale residential.”
Stumpf returned to council June 16, 2025, to provide a project update. At that time, Stumpf said the developer was negotiating with a builder to construct 100 rental homes for senior citizens. That’s when Parker, who was council president at the time, originally insisted council approved the rezoning only if the project did not include rentals.
During last week’s meeting, Fields said the establishment ordinance does permit rentals, which are acceptable uses under the new zoning districts assigned the land.
Council member Gary Turner then noted an added twist.
“Just this past session, the General Assembly passed a new statute that forbids municipalities from denying property owners for having rental properties,” Turner said, “so we would be going against statute if for any reason — we shouldn’t — but for any reason we might try to deny it on that basis.”
The wide-ranging, 418-page House Enrolled Act 1210, which Gov. Mike Braun signed into law March 12, includes a provision that says a unit may not adopt an ordinance, resolution, regulation, policy or rule that “has the effect of prohibiting or restricting the use of property as a rental property.” That prevents caps or limits on rental properties. Another provision empowers homeowners associations to prohibit or restrict rental properties.
Council member Doug Goss asked A.J. Sickmann, the city attorney, if he would provide council additional information about the new law. Sickmann said he had been researching the law and would do that.
Council President Justin Burkhardt referred the ordinance to council’s finance committee, which will discuss it during its 6 p.m. Sept. 8 meeting in the Hutton Room on the second floor of the city building.
A version of this article appeared in the August 26 2026 print edition of the Western Wayne News.
