By BECKY KISER
Hays Post
Economic development incentive requests approved by the Hays City Commission Thursday will help move forward several housing and business developments.
Commissioners approved the issue of industrial revenue bonds for the 24/7 Travel Store truck stop planned for the Interstate 70 Exit 157.
The city commission has already created a tax increment financing district on the property. The developer, Triplett, Salina, will also request a community improvement district from the city in the future.
Most of Hays' general fund operations are financed by the local retail sales tax.
The project cost is about $11.1 million, with estimated annual retail sales of $5 million and fuel sales of $20 million.
The issuance of industrial revenue bonds was also approved for Agiliti Hays, the medical equipment manufacturer on south Commerce Parkway, which plans to buy, renovate and expand its campus buildings.
A total 140 new jobs would be added in phases to the current 91 positions. The company also has a site in Ellis which employs about 60 people and will remain open.
The estimated sales tax benefit is $101,036. Utilization of the industrial revenue bonds, which have no taxpayer commitment, also allows a property tax abatement for up to 10 years for the $6.55-million project.
During a public hearing, Eddie Herrman, HaysMed president and CEO, talked about how the hospital would have a closer partnership with Agiliti as it begins building medical beds.
Larry Askew, based in Kansas City with Agiliti, said the company had many options nationwide in locating a new manufacturing facility.
"All of the incentives that we have sought and are acquiring with the state are all performance-based," Askew said.
"This is not an attempt at a grab or to do anything other than grow organically in a very healthy way in the community."
"Regarding the abatements and benefits we're giving up, there's so much economic benefit that we are gaining through this expansion with Agiliti to our own communities, that it's very valuable," said Alaina Cunningham, commissioner.
"When companies look at whether they want to bring retail into this town, they look at how many jobs are here, how many houses are being built," said Commissioner Reese Barrick.
"These are families coming in. It's going to affect our schools' growth. I think this is a huge win."
A Reinvestment Housing Incentive District (RHID) was approved for the former Lincoln School, 1906 Ash.
The incentive district would finance the project on a pay-as-you-go basis over 25 years, estimated to generate $1.3 million in incremental property tax revenues collected on the project site. Eligible project costs are estimated to be about $4.3 million.
Hays developer Michael Graham plans to renovate the building into a 26-unit multi-family housing facility and to construct seven additional structures on the property, each with four units.
Graham was at the meeting and thanked the city commissioners for their support.
Other agenda items approved by the commission included
• Concurrence with a bid solicited from the Kansas Department of Transportation (KDOT) for construction of the north side multi-use path from 41st and Hall east to Sternberg Museum. The low bid came from Morgan Brothers of La Crosse for $1.6 million. The city will pay $387,000, and KDOT will pay the remaining $1.2 million.
• Financing of a Midwest Energy utilities agreement for the Tallgrass Phase 4 housing development in east Hays. The city earlier agreed to finance infrastructure costs. The total amount is $797,457 to be funded with bond proceeds offset by Reinvestment Housing Incentive District revenues.
• Approved the renewal of the Blue Cross Blue Shield health plan for city employees in 2026. The premium increase was 12.8%, below the national average, said Erin Giebler, human resources director.
• Presentation of awards to city employees for 5, 10, 15, 20, 25 and 30 years of service.