May 22, 2024

Hays City Commission to vote on economic help for development projects

Posted May 22, 2024 4:34 PM
Hays city commissioners at the May 16 work session. Photo by Becky Kiser/Hays Post
Hays city commissioners at the May 16 work session. Photo by Becky Kiser/Hays Post

By BECKY KISER
Hays Post

Incentive requests for a couple of projects through the city of Hays' economic development program will be considered on Thursday.

Vernie's Trux-N-Equip. plans to construct a new shop and office north of Interstate 70 on six acres northwest of the intersection of 48th Street and General Hays Road at 4885 Vine. It's the site of the former Hays Livestock sales barn.

The planned new location of Vernie's Trux-N-Equip. City of Hays image
The planned new location of Vernie's Trux-N-Equip. City of Hays image

The owners are requesting the establishment of a commercial improvement district with a 2% sales tax and the issuance of industrial revenue bonds.

It's estimated the CID sales tax will generate $1 million during the maximum 22-year term. IRBs would allow a sales tax exemption for purchases related to the construction of the $2.6 million project.

No property tax abatement is requested.

Commissioners will consider two resolutions for those requests. 

The second project at 1108 N. Main in downtown Hays involves redeveloping the existing building into a new luxury short-term rental Airbnb called Chestnut Suites. The building was constructed in 1965 and has been vacant for 40 years.

Planned location of Chestnut Suites in downtown Hays. Courtesy photo
Planned location of Chestnut Suites in downtown Hays. Courtesy photo

Chestnut Suites is pursuing a $300,000 community development block grant through the Kansas Department of Commerce. 

The city of Hays must be the official applicant for the CDBG funds, although developer Adam Pray will own and operate the project. Components of the grant application require an interlocal agreement between the city and the developer, two resolutions, and a public hearing.

No city funds would be disbursed for the $3.2 million project.

The commission will also vote on a three-year contract renewal for city attorney services with Dreiling, Bieker & Hoffman.

Some expenses would go up to reflect the current costs of providing city attorney and municipal prosecution services for Hays. The main change is the monthly retainer, which increases to $12,500.