By BECKY KISER
Hays Post
A building in downtown Hays that has sat vacant for more than 40 years is on its way to being reconstructed.
Local developer Adam Pray has plans to rehabilitate the former Hays State Bank building at 1108 N. Main into a luxury short-term rental Airbnb called Chestnut Suites. Built in 1965, the building later housed Sunflower Electric until the 1980s.
Pray is seeking a $300,000 community development block grant through the Kansas Department of Commerce's commercial rehabilitation program.
Hays city commissioners approved resolutions on Thursday to declare the building blighted and apply for the grant. Cities and counties must be official applicants for those state funds.
A matching fund of 25% is required as part of the grant program and will be paid by the developer. No city funds would be disbursed for the $3.26 million project.
Renovation plans call for creating 24 to 26 rooms for short-term or 30-plus-day renters. The rooms would be designed similar to those of traditional hotels. A guest common area will include an ice machine, microwave, sink, dining room area and bar. Laundry will also be available for the long-term tenants.
Grow Hays executive director Doug Williams said in a KAYS Morning Blend interview Friday that the city would benefit from having the property back on the tax rolls after 40 years.
Williams also addressed parking concerns in downtown Hays and said he anticipates older buildings that are no longer viable could be turned into parking lots in the next five to 10 years.
"This will be just down the street from The Fox and The Strand venues. People can stay at the Airbnb and walk to their events," Williams said.
He also talked about the increased economic benefits for downtown retail shops and restaurants.
Because the building is located in the historic Chestnut Street District, the facade cannot be updated or changed for five years, according to National Register of Historic Places regulations, Pray told commissioners.
Redevelopment north of Interstate 70 was also addressed.
Resolutions were approved for a public hearing to establish a community improvement district and issue industrial revenue bonds for Vernie's Trux-N-Equip. The company plans to construct a new shop and office at 4885 Vine, the site of the former Hays Livestock sales barn.
The truck equipment dealer and repair shop will relocate from its present site on 41st Street, which has been sold to Lewis Chrysler for expansion, Williams said.
The 2% sales tax on the project site will generate about $1 million during the 22-year term for eligible project expenditures.
Utilization of the industrial revenue bonds will allow the developer to obtain a sales tax exemption for all purchases related to the construction of the project.
No property tax abatement is requested.
In other business, the commission:
• Approved a three-year city attorney contract renewal with Dreiling, Bieker and Hoffman
• Heard a request from the six military veterans organizations in Hays to declare Hays as a "Purple Heart City."