By CRISTINA JANNEY
Hays Post
On Monday, after the Hays USD 489 school board heard from four developers about their plans for 7.3 acres north of Felten Elementary School (the former Hays Middle School), they agreed to discuss further selling the property.
All the developers said their plans included building single-family homes or duplexes on the land.
Galen Romme of Romme Real Estate said the appraisal was prepared with the highest-density use in mind, which would be multi-family housing.
"If you look at single-family or duplex-type properties, you are going to get back to the price range that these gentlemen are presenting you as offers," he said.
Rising Star Trust Company
Rising Star Trust Company, owned by Chester Mayhew Jr. and Sr., presented an addition that would add 78 housing units.
Most of the units would be two-bedroom, one-bath duplexes, but also include three-bedroom, two-bath homes.
The homes would be slab homes and range in sale price from $175,000 to $250,000.
"Hays is growing and has a housing supply need," Mayhew Jr. said. "We believe there is a market for producing attainable, quality homes for working families."
"I think many families can't find homes in their price range or live outside of Hays and commute to work in Hays. We feel this project directly addresses the workforce housing needs we believe Hays has."
Mayhew Jr. said the concept behind the homes would be to provide entry-level housing to young families, working professionals and long-term residents.
He said they were designing the families for dual-income working families.
"We do good work, and I think we build pretty good-looking homes. We will focus on durable, efficient and practical housing," Mayhew Jr. said.
He estimated it would cost them $1,200 per linear foot to establish utilities to the homes.
Mayhew Jr. said the school district would benefit from additions to the tax base and potentially more consistent enrollment.
"This is a long-term project focused on families, workforce and sustainable growth," he said.
Mayhew Sr. said they would pursue incentives for the project.
He said they planned to complete the project in phases over three to five years.
VJ Rentals
VJ Rental and MD Construction, a joint venture of Vaughn McMurtrie and John Zeigler, have proposed 41 to 45 homes for the school district property.
"There are a lot of people who like to have smaller homes, lower-income housing," McMurtrie said.
He said phase one would start near the Felten Elementary School track and include 19 homes.
McMurtrie said they did not intend to build the homes. They expect to develop the infrastructure and sell the homes to contractors. He estimated the houses would sell for about $250,000.
McMurtrie said there is room on the lots for garages, but the homes would need to be two-story. He said they would put the sewer in deep enough to allow for basements, but building basements would be up to the contractors.
He said he hoped to keep special assessments under $150 per lot per month. He said a program exists that would rebate taxes back to the homeowner and possibly cover the special assessments. The homeowner would have to pay their special assessments 12 months ahead of receiving the rebate from the city, he said.
McMurtrie said he was trying to keep the lot sale prices less than $35,000.
He said he thought the first phase could be built within a year and a half, with the project completed in four years.
Trailhead | Oak
Lance Johnson, who grew up in Hays, is the developer for Land Inspired and Bartlett and West Engineers.
Although Johnson is based in Lawrence, he said it would be his intent to use local contractors, builders and vendors.
His goal would be to be a lot seller.
Johnson is proposing 38 single-family, two-story, two-car garage homes in his Trailhead | Oak development. The homes would likely sell in the upper $200,000s to $300,000 range, he said.
The development would include pocket parks and a homeowners' association to maintain them.
"It's all about first homes, that first investment, that first chapter for growing families," Johnson said. "It's based on a starting point and attainable housing for the families that will most likely attend next door."
"We are trying to develop a cohesive neighborhood and grow the tax base," he said.
He said the project is not contingent on incentives, but he would not rule them out.
Johnson said he thought the development could be built out in three to five years.
Paul Wertenberg Construction
Matt Allen, with Hays developer Paul Wertenberg Construction (PWC), tried to paint a picture of the current housing development market.
He said the cost of the lots purchased for the Tallgrass Addition near HaysMed ranged from $6,900 to $9,000 per acre. The cost per acre would be $50,000 to $70,000 if the district's land were sold for the $630,000 appraised value.
Allen said the investment required in the property before houses could be built would be $1.4 million to $1.5 million.
He said PWC would seek tax credits to help cover development costs.
The developer is proposing 26 slab-on-grade, single-family, three-bedroom, two-bath homes ranging from about 1,000 to 1,300 square feet, with garages and an option for a storm shelter in the garage.
Allen said he anticipated sale prices on the homes to range from $250,000 to $300,000. He said PWC would attempt to complete the project without special assessments.
He said, adding $200 in special assessments would likely price many buyers in Hays out of the market.
PWC would target teachers to purchase these homes, with the first right of refusal going to Hays USD 489, Fort Hays State University, Fort Hays Tech North Central and Catholic school teachers.
The developer could also pursue moderate-income housing incentives from the state, but it would be at least a year before the developer could access those funds.
PWC said these homes would also qualify for the city of Hays' neighborhood revitalization program, with a tax rebate going back to the homeowners.
He said the homes could be used as a recruitment tool for the schools and would add about $6 million to $7 million to the tax base.
Board member Ruth Ruder asked Allen if he thought the $630,000 appraisal was legitimate for single-family home use. All four bids came in between $200,000 and $250,000.
Allen said, "It just doesn't pencil out. If you were able to get that kind of money for that lot, you would end up with $80,000 to $90,000 per lot before you start construction. It would be very difficult to build a $250,000 home when you have that cost before you even start."
Allen said the appraisal would be for commercial property, and he did not see a commercial developer buying that property.
Doug Williams, executive director of Grow Hays, addressed the board. He said the district has four fantastic proposals. He also said he did not see a commercial developer buying the property.
"I think you need to look at what the use might be, and I would encourage you to look at outcomes as opposed to being completely focused on price," he said.
He added, "The impact to the school district is that we get new homes and the income and the economic impact that is created by the construction of those homes and activity, and hopefully the people who move here and students who go to the school district."
Williams said the Reinvestment Housing Incentive District, which some of these developers might seek, means you are trading taxes today for housing now.
The incentive district is a financing tool that captures the incremental increase in property taxes from a new housing development for up to 25 years. This tax increment is used to reimburse developers for eligible project costs.