By BECKY KISER
Hays Post
The Rural Housing Incentive District (RHID) section was added to the city of Hays' economic development policy in 2013.
It's been utilized just once.
City commissioners have been talking for more than a year about changes to the RHID to encourage more development, especially as the housing shortage in Hays has worsened.
Originally intended for higher density, income qualified and low-income housing, city commissioners modified the policy in 2020 to allow not-for-profit developers to utilize RHIDs for single-family homes.
To date, the sole RHID in Hays is located near the intersection of Wheatland and 22nd, spearheaded by Heart of America Development Corporation, a non-profit investment consortium in Ellis County. The 75-lot development will be built in three phases with homes ranging in price from $175,000 to $225,000.
An RHID captures the incremental increase in real property taxes created by a housing development project for up to 25 years, allowing the developer to recoup the cost of infrastructure development.
The city of Hays and Ellis County forgo 100% of their property tax increments during the 25-year term of the RHID. The Hays school district, USD 489, forgoes all but the state-issued 20 mills.
Earlier this year the Kansas legislature approved a bill expanding RHIDs to allow renovations on the second floor or higher of buildings located in central business areas in any city or county in Kansas with a population smaller than 60,000.
The buildings must be at least 25 years old and the renovations must be for residential housing.
After several in-depth discussions this spring, the commission voted 4-1 Thursday night to approve modifications to the RHID. Ron Mellick, who has voiced concerns about the changes throughout the discussions, voted no.
At the May 6 work session, the consensus was to "remove most of the restrictions, over and above state statutes," Assistant City Manager Collin Bielser reminded the commission Thursday.
"The only exception is developer reimbursement is required underneath this policy. Bond financing would not be allowed."
On May 20, there was discussion to make a "minor revision that would allow the commission to vary from the policy. So that was strengthened," Bielser added.
Last week commissioners agreed the time between housing assessment studies, which have been done by the Fort Hays State University Docking Institute, should be lengthened to three years. It previously had been two years.
"As we all know, we need more housing," said Commissioner Shaun Musil. "My goal is maybe we'll build even more. We don't know, but I think it's a good option to have out there."
"Certainly an opportunity if somebody is interested," said Sandy Jacobs, mayor.
"I'm excited to see what happens," added Mason Ruder, vice-mayor.
In other business, commissioners:
* Approved a change to the Kansas Public Employees Retirement System (KPERS) 457 plan for city employees from MassMutual (which was recently bought out by Empower). According to Erin Giebler, human resources director, there are 47 city employees currently participating in the retirement plan. There is no additional cost to the city.
* Adopted the updated Ellis County Multi-Jurisdictional Hazard Mitigation Plan presented by Hays Fire Chief Ryan Hagans. There is no cost to the city. The plan identifies the natural disasters associated with the county and suggests actions that can be taken to address hazards based on probability and vulnerability.
* Approved a low bid award to Moran Brothers, LaCrosse, of $617,000 for construction of street, water, stormwater, and sanitary sewer improvements to the development of 22 lots in King's Gate Second Addition off 41st Street in northwest Hays.
* Approved rezoning 32 acres of land at 5809 230th Avenue owned by Hess Land from agriculture to heavy industrial district. Although outside city limits, the area is within the three mile Extra-Terrestrial Jurisdiction (ETJ).
* Heard a recent progress report of city departments activity from Bielser.
* Heard about upcoming July events in Hays from Melissa Dixon, Convention and Visitors executive director, who noted the new Avid Hotel Hays, an IHG hotel, opened last week at 206 W. 43rd Street, north of Interstate 70.