Aug 19, 2024

🎤 Hays City Commission discusses housing, business expansion financing

Posted Aug 19, 2024 3:12 PM
Hays City Commission Aug. 15 work session. Photo by Becky Kiser/Hays Post 
Hays City Commission Aug. 15 work session. Photo by Becky Kiser/Hays Post 

By BECKY KISER
Hays Post

Moving forward with various funding mechanisms for proposed new housing developments and business expansions was the focus of Thursday's Hay City Commission meeting.

Proposed Phase 4 of Tallgrass Housing Development 2nd Addition. Courtesy image
Proposed Phase 4 of Tallgrass Housing Development 2nd Addition. Courtesy image

The east Hays Tallgrass Housing Development Phases 1-3 was financed with a Reinvestment Housing Incentive District.

The Heart of America Development Corporation footed the development cost upfront and is receiving the revenues from the RHID to recoup part of its cost. Heart of America has requested to be “cashed out” of the development to pursue more Phase 4 housing to the north.

Commissioners discussed issuing general obligation bonds and utilizing the RHID revenue to pay those bonds. The money generated by the bonds would be given to Heart of America as reimbursement for its previously incurred costs in the Tallgrass Development. Heart of America would then agree to use those revenues to create water, sewer and street infrastructure on the remainder of the property it owns.

The bonds would also be used to finance the new automated meter infrastructure for the water and wastewater system.

The city must enact its first-ever home-rule ordinance to execute the process.

Artist concept of Depot Addition, 10th and Walnut.
Artist concept of Depot Addition, 10th and Walnut.

Also discussed was a resolution to set a Sept. 26 public hearing for establishing an RHID for the Depot Addition housing at 10th and Walnut in downtown Hays. The private developer is Hays resident Michael Graham.

The commission moved forward with two more resolutions to issue industrial revenue bonds for other downtown projects.

Chestnut Suites LLC is planned for 1108 N. Main. Photo by Cristina Janney/Hays Post
Chestnut Suites LLC is planned for 1108 N. Main. Photo by Cristina Janney/Hays Post

Local developer Adam Pray plans to rehabilitate the former bank building at 1108 Main Street. The Chestnut Suites project would consist of 24 to 26 short- and long-term rentable luxury rooms, targeting out-of-town visitors who want to stay downtown.

Proposed expansion of Gella's Diner at 121 E. 11th, immediately east of the restaurant and brewery. Courtesy photo
Proposed expansion of Gella's Diner at 121 E. 11th, immediately east of the restaurant and brewery. Courtesy photo

The second resolution would be for IRBs for Gella’s Diner and Liquid Bread Brewing Company.

It wants to expand into the adjacent building to the east, which would be used for event space and Fort Hays Tech-North Central culinary classes. 

An IRB issuance does not count against the city’s debt limit or affect its debt rating and does not require taxpayer commitment.

Commissioners spent considerable time discussing proposed fee increases at Hays Aquatic Park and Wilson Pool, along with hikes at the Fort Hays Municipal Golf Course.

All three are considered quality-of-life amenities and are not expected to generate a profit for the city.

Hays Mayor Shaun Musil, however, wanted to raise prices higher than Jeff Boyle, parks director, recommended.

"From a businessman's perspective, you wouldn't let the gap between revenues and expenses be that wide," Musil said.

Ultimately, commissioners agreed to fee hikes at the golf course for 9-holes, 18-holes, single, couple and family memberships, with no changes in the junior membership, card shed rental or trails fee.

The recommended new fees would be:

Fort Hays Municipal Golf Course
9-Hole — $17
18-Hole Weekday — $23
18-Hole Weekend — $26
Annual Single Membership — $575
Annual Couple Membership — $720
Annual Family Membership — $740

Hays Aquatic Park
Season Pass — $53

They also agreed to an increase in daily admission to the aquatic park and for a season pass. Daily admission to the neighborhood Wilson Pool will remain the same.

All agenda items will be voted on at the Sept. 22 city commission meeting.