
MANHATTAN, Kan. — The Manhattan City Commission voted unanimously on Tuesday, January 21, 2025, to approve another amendment to the Aggieville Midtown development agreement, allowing Back 9 Development to replace a previously planned multi-use office building with a 105-room hotel and a 100-stall parking garage. The decision also included authorization for $20 million in industrial revenue bonds to provide sales tax exemptions on construction materials.
The Midtown site, located at the northwest corner of 12th and Laramie streets, has been vacant since the project stalled in March 2023 after a major investor withdrew. Originally envisioned as a mixed-use building with office space, the project was reimagined by Back 9 Development President TJ Vilkanskas, who argued that the hotel was the only viable option to move forward.
"The hotel was the only thing that made sense to move this project forward," Vilkanskas told commissioners during the meeting.
He added that demand for office space in Manhattan had declined since he acquired the lot from the city for $1 in April 2022.
Under the amended agreement, Vilkanskas must submit a building permit application by July 1, 2025, begin construction within 30 days of receiving the permit, and complete the project by October 1, 2026. Failure to meet any of these deadlines will require Back 9 Development to pay $2.3 million to the city within 60 days.
The meeting featured heated exchanges during public comment. Gwyn Riffel, owner of Riffel Asset Management, criticized Vilkanskas’ qualifications and expressed concerns about adding another hotel to Aggieville. "This will negatively impact the opportunity and ability of the district to achieve its vision of creating a vibrant commercial area." Riffel said.
Mayor Susan Adamchak, attending virtually, sharply questioned Riffel about his own vacant lot in Aggieville. "What are you asking us to respond to when you have a very visible vacant lot on Bluemont Street? Where have you been for the last six months?" Adamchak asked.
The exchange drew criticism from Katie Smith, a subsequent speaker who condemned Adamchak's remarks as inappropriate.
"Commissioner Adamchak, that was very uncalled for and quite rude," Smith said. "You’re not going to be here for super long—not just because you’re old, but because we’re going to vote you out."
Smith also criticized the city’s continued support for what she described as a "failing" project. "If you vote ‘yes,’ this is telling developers that Manhattan is easy to bully," she said.
Despite public criticism, commissioners defended their decision as pragmatic given the circumstances. Commissioner John Matta said that while a hotel wasn’t the original vision for the site, it was unlikely another developer would step forward soon.
"I think we entered into a contract, but we also went into it with open eyes from both sides," Matta said. "There’s always a risk when you do things, and things change. ... We took a risk. It didn’t work out. Now we have to regroup and decide what’s the best way forward."
Commissioner Jayme Minton added that amending the agreement was more responsible than abandoning it entirely.
City officials expressed optimism about the economic benefits of the revised plan. The hotel is expected to generate significant tax revenue through property taxes, sales taxes, and transient guest taxes within Aggieville’s Tax Increment Financing (TIF) district until its expiration in 2038.
The Aggieville Business Association and Manhattan Chamber of Commerce both supported the amendment, emphasizing its potential to bring jobs and visitors to Aggieville while addressing long-standing parking challenges in the district.
Back 9 Development plans to restart construction by mid-2025 and complete the project by fall 2026.
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