SALINA, Kan. (KSNW) — Salina is getting ready for the first stage of a $25,000,000 investment into housing.

Salina city leaders say more people have been moving to town as area companies have grown.

There have been expansions for companies in Salina, like Schwan’s and Great Plains Kubota, adding a strain on the housing options for new employees coming into the community.

The city has been working with a real estate firm, Salina Destination Development (SDD), to use state grant money to provide more housing.

The first phase includes an apartment complex with more than 250 units near the west side of Magnolia and Interstate 135 next to Menards.

City working on project to stop Crown Heights flooding after decades of issues

The director of community and development services says this is just the start of the new development.

“We weren’t going to do this overnight, so we started with, I should say, Greenfield, which is like new build stuff so subdivisions that we can get a lot of houses built quicker larger apartment complexes and then once some of the initial pressure was relieved, we could then go after smaller projects four or five townhomes here,” Director Of Community and Development Services Lauren Driscoll said.

Driscoll says that people moving in from outside the area will hopefully see apartment options that they might be used to living in with new amenities and community recreation areas for families.

“If you’re coming to Salina and you came from KC or Oklahoma, you’re looking at a product that looks familiar. I know how to live in that, right? It has the amenities I want. I have to worry about the yard. It’s at a price point,” Driscoll said. “I mean that’s also part of something when you talk to developers like the people, we have coming make this, I need you to bring a product that matches that.”

She says that homes from this project will be geared towards rental properties for residents.

The city is also using about $1 million in federal funds to start rehabbing a 10-block area in the city to add more housing options for community members. Groundbreaking for the new apartments will be Wednesday, May 8, with completion set for 2026.

For the latest news, weather, sports, and streaming video, head to KSN-TV.