Jan 03, 2020

Hays travel plaza developer seeks incentive package worth $16.8M

Posted Jan 03, 2020 12:01 PM
The Hays City Commission is set to schedule a public hearing for a  Tax Incremental Finance (TIF) district for a proposed travel plaza at exit 157 of Interstate  70 at its first meeting of the year on Jan. 9.
The Hays City Commission is set to schedule a public hearing for a  Tax Incremental Finance (TIF) district for a proposed travel plaza at exit 157 of Interstate  70 at its first meeting of the year on Jan. 9.

By CRISTINA JANNEY

Hays Post

The Hays City Commission Thursday night heard details on the first in a package of incentives for a proposed travel plaza north of Hays.

The commission will consider setting a public hearing on a Tax Incremental Finance (TIF) district at its next meeting on Jan. 9. That hearing is being proposed for Feb. 13.

The TIF will be pay-as-you-go. The city will not be issuing any bonds for the project.

Through a TIF future increases in property tax are used to pay back the the developer for infrastructure improvements for a project. The developers estimated the TIF will generate $14.9 million in revenue over its 20-year term.

Phase one of the proposed travel plaza.
Phase one of the proposed travel plaza.

The first phase of the 55-acre development at exit 157 of Interstate 70 would include a travel plaza and truck wash. The travel plaza will include a restaurant inside the plaza, a convenience store, scales and hygiene amenities.

Other lots in phase one will be available to for sale or lease to other developers for restaurants, hotels or other commercial uses.

Phase two of the project is anticipated to include construction of retail and commercial uses, including an RV park, all to be located on an approximately 15-acre site located immediately north of phase one.

D&J Land Development is proposing an incentive package that also includes a Community Improvement District (CID, assignment of a grant made by the Kansas Department of Transportation to Ellis County,  and the conveyance to the developer of a 4.611-acre tract currently owned by the city at no cost to the developer.

The incentive package would be worth a maximum of $16.8 million, according to materials in the commission's agenda packet.

D&J estimated phase one of the development once fully developed could generate as much as $38.7 million in taxable sales annually and the businesses could employ as many as 263 full-time equivalent employees.

Projected economic impact of phase one of the development.
Projected economic impact of phase one of the development.

The city annexed the land owned by D&J in December, and dirt work is underway at the site.

However, the process to approve the incentive package and project plans are estimated to take until May.

"I will say this probably many times until May, I am very excited about this happening," said Shaun Musil, vice mayor. "We have got a lot of work to do. It's exciting and thank you to the developer."

Commissioner reorganization

The commission will have its annual reorganization meeting at its first regular meeting of the year on Jan. 9. New commissioners will be sworn in at that time.

Mason Ruder and Michael Berges were newly elected to the board in November. Incumbent Commissioner Ron Mellick will be continuing on the board.

Commissioners thanked commissioner Eber Phelps for his service. Phelps was appointed to serve out an unexpired term. Outgoing commissioner and Mayor Henry Schwaller was not at the meeting.