A public hearing date of February 13th has been set for a requested TIF (Tax Increment Financing) district for a proposed travel plaza to be built in northwest Hays at the northwest corner of 230th Avenue and 55th Street.
Hays Finance Director Kim Rupp reviewed details of the economic incentive during Thursday night's city commission meeting.
“Those TIF eligible costs are regulated by state statute," Rupp reminded commissioners, "which includes property acquisition, site prep, utilities, paving, grading, curb, gutter, parking, landscaping and other related expenses to develop and finance the project.”
Through a TIF, future increases in property tax are used to pay back the developer for infrastructure improvements.
The managing partners of D&J Land Development, Hays resident Dan Hess of Hess Services and Topeka commercial real estate developer John E. Brown, estimate the TIF will generate nearly $14 million over its pay-as-you-go 20-year term.
The city will not be issuing any bonds for the project.
The complete $16.8 million economic development incentive package also includes a community improvement district (CID, assignment of a grant made by the Kansas Department of Transportation to Ellis County, and 4.611-acre tract currently owned by the city.
In Phase I, a full-service travel plaza and truck wash will be built on two of the 11 lots.
The 10,000 sq. ft. travel plaza and convenience store will include 14 fuel pumps, scales, restaurants inside the travel plaza and personal hygiene amenities.
The truck wash will house two bays for washing semi-trailer trucks in a 6,000 sq. ft. building.
The remaining lots will be sold or leased to other end users for potential development of hotels, restaurants or other commercial uses.
When Phase I is fully completed, the developers estimate it will generate $38.7 million in annual retail sales and $3 million of annual gas/diesel fuel sales, according to information submitted to the city.
A potential Phase II of the project would be located on 15 acres immediately north of Phase I.
Rupp told the commission the developer may approach the city in the future regarding annexation and incentives for Phase II.