Dirt moving equipment at the future location of the Avid Hotel Thursday. (Photo by Cristina Janney)
By BECKY KISER
Hays Post
Dirt work has already started at the future location of a planned four-story Avid IHG-flagged hotel immediately west of Old Chicago restaurant and south of the Hilton Garden Inn convention center that is under construction.
An ordinance to establish the Saffron West 43rd Community Improvement District (CID, levying the 2% CID sales tax, and authorizing the execution of the development agreement was reviewed by Hays city commissioners Thursday night during their work session.
Planning, Inspection and Enforcement (PIE) has already issued an excavation permit to the developer for dirt work on the 2.1 acres, according to Jesse Rohr, public works director, who spoke to Hays Post after the meeting.
Rohr said PIE is now reviewing building plans for the hotel. "They [developers] are gonna be ready to go."
All materials have been reviewed by the city’s special legal counsel, Gilmore & Bell, P.C., and meet all the requirements of Kansas law and the city’s economic development policy, Kim Rupp, finance director, told the commission.
The $7 million project is expected to be completed in December 2020.
"However, the agreement does provide they are required to provide a certificate of occupancy no later than July 1, 2021. Their incentive is the fact the CID begins January 2021," Rupp noted.
Commissioner Eber Phelps asked if that was a problem or issue with anybody.
It's not an issue with the city, according to Rupp.
Although he found it unusual, it's what Saffron Hospitality provided for in their development agreement.
"I think they're probably allowing a little wiggle room should things happen to fall apart on them in construction," Rupp said. "They're giving themselves a little more time into 2021.
"If they happen to have to go to July 2021, it'll cut six months off their CID because the CID is programmed to start in January 2021 if this ordinance is passed," he explained.
Hays Finance Director Kim Rupp explains the details of a CID request by Saffron Hospitality, LLC, to build a new hotel north of I-70.
A public hearing will be conducted at the December 12 meeting. The city commission will then consider the ordinance to establish the CID and impose the CID sales tax.
The developer estimates the CID will generate approximately $622,836 over the 20- year term of the CID.
A 10-minute executive session was called at the end of the work session to discuss property acquisition. No action was taken.