By BECKY KISER
Hays Post
Although Hays city commissioners are somewhat unhappy with the renovation progress at Big Creek Crossing shopping center, they agreed last week to an amendment request by owner Hays Mall LLC to modify the Community Improvement District (CID) development agreement.
The amendment, passed 4-1, allows the Big Creek Crossing owner to be reimbursed for up to $1 million of qualified improvements they are currently making to the north end of the facility to accommodate the incoming Ollie's Bargain Outlet.
The one-cent sales tax on purchases made at the shopping mall, located at 2918 Vine, was approved on November 13, 2014 and is in effect for up to 22 years.
The city commission approved up to $3.1 million in eligible reimbursement costs - hard infrastructure costs determined by city policy.
They were broken into Phase 1 and Phase 2 with completion deadlines of 2016 set by the owner.
Phase 1 improvements included lighting, flooring, façade, and the parking lot. Phase 2 improvements, which included $1 million for interior refinishing to accommodate a large retailer, were not completed, and therefore not eligible for reimbursement with CID revenues.
So far, the developer has spent $2 million of the $3.1 million, which was certified by the city.
The CID amendment creates an 18-month deadline for the owners to expend the remaining one million dollars and submit it for reimbursement.
The property owners have identified improvements to the interior of the facility, HVAC system, exterior, and parking lot that could exceed $1 million.
Commissioner Shaun Musil, who was on the commission in 2014, had already signaled a week earlier that he would likely vote against the request.
"It just feels like they do the bare minimum," Musil said, "but they do bring in sales tax dollars."
Hays' general fund is primarily supported by the city sales tax. Based on information from the owners, the city estimates Ollie's Bargain Outlet annual sales tax to be between $70,000 and $87,500 each year the CID is in effect.
"The goal was to keep that mall open," Musil concluded. "I'm glad it's still there. For me, it's just too much baggage behind the scenes with these guys."
Michael Berges agreed with Sandy Jacobs that he didn't want the mall to be vacant. He also feels there's a misunderstanding about how a CID works.
"The CID is simply a collection mechanism for the business," Berges explained. "... There is no direct financial impact to the city or the taxpayers. They're collecting that one cent off their own shoppers.
"So if this something you don't like, then don't shop there."
Berges still remains somewhat frustrated with the mall owners. "I'd like to say 75 percent of my vote is yes, and 25 percent of my vote is no," he joked.
The agreement with Hays Mall LLC is the city's only CID with an existing business, not a new business being created.
"I think we learned a few things with it," said Toby Dougherty, city manager.
"If we do have another similar situation, we now know what questions to ask them, what things to ask for, that we didn't at the time. So we took a lot of stuff on faith and didn't get it in writing.
"We can probably do a lot better if a similar situation happens."
Musil cited the example of parking lot improvement.
"We didn't technically say you have to do all the parking lot; we just said improvements. They did do some improvements."
Jacobs agreed the city should have done a better job of negotiating the CID agreement.
"It's the way we outlined it and we allowed it to happen."
Jacobs also said she had not heard any objections from current mall tenants.