By BECKY KISER
Hays Post
Development updates were the focus of Thursday's Hays City Commission meeting.
Economic incentives for three projects were unanimously approved. The fourth request did not go as smoothly.
Community Development Block Grant for 1012 Main St.
Hays developer Tim Speno, One Twenty Seven Investments, plans to renovate the top floor of his property at 1012 Main St. into three Airbnb-rentable units. The lower floor is occupied by Eclectic Threads Quilt Studio.
Speno, who owns several other Hays properties, applied for a $300,000 Community Development Block Grant through the Kansas Department of Commerce Commercial Rehabilitation program for blighted properties.
Although the program funds projects owned and operated by private developers, cities and counties are still required to be the official applicants for the CDBG funds.
A public hearing for the grant brought no comment.
Commissioner David Vilaysing voted against the grant application and the interlocal agreement.
Vilaysing questioned Speno about his personal financial status, whether the project would generate any new jobs and how long he intended to retain ownership of the units.
The CDBG requires a minimum three-year commitment by the awardee.
Speno said he took half of his personal retirement fund out of the stock market to invest it in local real estate.
"I believe in Hays. We're living here. We're not moving. ... (Eventually) I'll be operating it as a business owner. One thing I hope to have is my own restaurant in one of the properties. I don't know if 1012 will be it. ... ," Speno said.
Speno would dedicate his own money to the remaining $90,626 of the renovation costs.
"This money is going to be used somewhere," Speno said. "I'm hoping this money, even though it's taxpayer money, comes to Hays and not another county or city."
Vilaysing said, "My thought process on that, and I know a lot of my constituents' thought processes are, if we would stop paying for rich people to get richer, then maybe we could start saving the taxpayers some money."
"Because at the end of the day, this is a huge investment plan. You're investing 25% and in three years, you can potentially flip that property, make a 75% return on your investment," Vilaysing continued. "That's huge. ... I appreciate you wanting to make Hays better, but I don't like you doing it at the expense of the taxpayers."
Speno previously applied for the grant in 2025 but was unsuccessful due to a lack of federal funds available for Kansas grants.
Rezoning and annexation requests for 1375 E. 41st
Property owner Cathy Braun asked for annexation and rezoning from agriculture to light industrial district for 1375 E. 41st St. for possible future development. Both were unanimously approved.
The type of uses for the property would be limited, said Jesse Rohr, public works director, because it would not be cost-effective to extend the sewer across Interstate 70 at this time. The property is also in the 100-year floodplain and any development would be required to meet the floodplain regulations.
Industrial Revenue Bonds issuance
Ordinances to issue the Industrial Revenue Bonds (IRBs) for the Bob and Pat Schmidt Community Center in The Grove, north of Hays Medical Center on Canterbury Drive, and CERV's convenience store and gas station, 3701 Vine Street, were unanimously approved.
Construction of both projects is complete.
Utilization of the IRBs allows the developers to obtain a sales tax exemption for purchases related to the construction of the projects.
The city acts as a conduit for issuing the IRBs, and it does not effect the city's debt limit or rating. The IRBs do not require taxpayer commitment.
The IRB issuance for the community center is $6 million. The IRB issuance for CERV's is $4.7 million.
2026 water line and influent mag meter projects
Rohr presented proposed low bid awards for a new water line along 23rd Street between Lincoln Draw and Fort Street, and for an influent mag meter at the water plant, 1000 Vine.
The commission approved the water line low bid of $511,411 from J Corp, Hays. The project replaces a 4-inch water main in residential areas that had nine breaks and quality issues in the past.
The low bid to replace the specialty influent mag meter was from CAS Constructors, Topeka, for $38,570. It was also approved by the commission.
Legislative update by Rep. Barb Wasinger
Rep. Barb Wasinger, R-Hays, highlighted some of the bills passed by the 2026 Kansas legislature during its 90-day session.
Commissioners thanked Wasinger for her persistence in championing House Bill 2433 that solidifies state control of water appropriations and transfers.
Under House Bill 2433, Kansas counties will not be allowed to require permits to transfer water through their rights-of-way or impose any restrictions or fees on the transfer of water. The law applies retroactively, affecting existing and future county resolutions.
The bill is applicable in the R9 Ranch long-term water project for the cities of Hays and Russell.
Vice-mayor Alaina Cunningham was absent from the meeting.
You can watch the the entire meeting below.