By Marisa Dawson

A piece of land that has sat largely undeveloped for decades is beginning to take shape as a new residential community in Bennington.

Prairie Ridge Townhomes, a 54-unit rental development being constructed within Bennington city limits, will add a different type of housing to a community where single-family homes make up the vast majority of the housing stock.

The approximately 7.29-acre site is currently vacant agricultural land. Plans call for 54 market-rate rental townhomes, with approximately 145,000 square feet of total building space.

The development team includes local Omaha-area homebuilders and developers Josh Bundren and Ryan Schwarz, who have developed multiple residential communities and constructed more than 150 homes, including the neighboring Prairie Hollow development.

For Schwarz, the project provides an opportunity to finally develop a property that has been waiting for a viable plan.

“Well, it had been a piece that had been sitting idle for a while and it was initially intended for apartment buildings, having some type of rental units,” Schwarz said.

The project has gone through several iterations. The original concept involved apartments, but the city was not interested in that approach because of concerns including density and traffic. The developers then proposed three-story townhomes before rising interest rates and affordability challenges forced another change.

“We had discussed apartments. The city was not on board with that,” Schwarz said. “So we had adjusted to three story townhomes, three story row homes.”

Eventually, the developers worked with the city on a financing solution involving Tax Increment Financing, or TIF, allowing the project to move forward with a revised design featuring two-story and one-and-a-half-story townhomes. The final plan includes 34 three-bedroom, 2.5-bathroom ranch-style units and 20 four-bedroom, 3.5-bathroom two-story units. All will have two-car attached garages, with additional driveway parking.

Schwarz said the variety of layouts is intended to serve residents in different stages of life.

“There will be units with the primary bed on the main floor,” he said. “That way it can service different demographics as far as age and things like that.”

Monthly rents listed in the development plan are approximately $2,900 for the three-bedroom units and $3,200 for the four-bedroom units.

Mayor Clint Adams said Prairie Ridge fits into the city’s effort to diversify Bennington’s housing options.

“It gives us a different housing type of stock that’s needed, especially in city limits,” Adams said.

While Bennington has some apartments and rental properties, Adams said the community remains heavily weighted toward single-family homes. He estimated that approximately 91% of the city’s housing stock consists of single-family homes.

“This just fits right in with that,” Adams said. “So it’s trying to get us a little bit more away from single family homes.”

The city’s comprehensive planning goals call for more diverse housing types, Adams said. He also noted that a broader mix of housing can help attract commercial development because businesses consider the available housing and potential workforce when evaluating communities.

The project plan similarly identifies housing affordability and workforce housing as goals, stating that residents earning approximately 80% to 120% of the area’s median income may qualify for the market-rate units.

Schwarz said the development will offer renters something that can feel more like a home than a traditional apartment.

“This gives people a rental opportunity, but kind of their own space,” he said.

The developer also envisions the project serving residents who want additional space without the maintenance responsibilities of homeownership.

The development is planned near existing commercial establishments, something Schwarz sees as an advantage for future residents. Plans also include trails connecting the development with nearby commercial areas and Bennington Park, along with sidewalks, landscaping and streetlights. A park for public use is also planned and will be maintained with private funds.

Schwarz said the revised design should also feel more like a neighborhood than a large apartment complex.

Traffic has been one of the concerns surrounding the development. Adams said the original plan had fewer access points, but the project now includes two entrances and exits intended to help distribute traffic. The city plans to continue monitoring traffic as the development matures, including potential impacts around C.W. Hadan Drive. A traffic study was also provided to the city as part of the development process.

TIF was another key component in making the project financially feasible. The redevelopment plan estimates the total project cost at approximately $21.1 million, with a $2.919 million TIF request. The plan’s financial analysis states that the project would not be economically feasible without TIF.
Adams said the city structured the financing so existing city tax dollars would not be at stake.

“We made a point of having it not affect the city’s budget or the people of Bennington’s tax dollars,” Adams said.

He said the city’s TIF structure does not allow interest and is designed to be paid off closer to a 10-year timeframe rather than potentially stretching to 15 or 20 years.

“It’s structured in a way to where if the project were to fail or go under, which we very much don’t anticipate, but the city would be not held liable whatsoever,” Adams said.

The development plan projects a final assessed valuation of approximately $18.6 million, compared with the current land-only valuation of $225,300. Once the TIF period ends, the increased property value is expected to contribute additional property tax revenue to the city.

“Once the TIF is complete, it’ll be a nice boost to our property tax income for the city in addition to having those additional units and people within them contributing to the sales tax in our community,” Adams said.

The project is expected to bring approximately 253 construction jobs, while the completed development is projected to create two permanent jobs. The redevelopment plan also anticipates additional customers for nearby businesses and another rental option for people working in Bennington.

Construction is planned to occur in phases, with the first units expected to become available around May or June 2027 and the remaining units following over approximately two years, according to Schwarz.

After years of sitting vacant and several changes to its proposed design, Prairie Ridge is now positioned to bring 54 new rental homes, additional housing diversity and new public amenities to Bennington. For Adams, the project represents another step in preparing the growing community for its future.

“It fits right in with it,” he said of the city’s comprehensive plan.

And for Schwarz, the goal is to create a residential community that provides renters with the space and feel of a home while giving Bennington another housing option.