Mar 21, 2022

🎥 Mayor: 'Let Big Creek Crossing continue renovations with amended 2014 CID agreement'

Posted Mar 21, 2022 11:01 AM
(Photo by James Bell/Hays Post)
(Photo by James Bell/Hays Post)

By BECKY KISER
Hays Post

The owners of Big Creek Crossing - Hays Mall LLC -  have asked for a modification to their original CID (Community Improvement District) agreement with the city of Hays.

The one-cent sales tax on purchases made at the shopping mall, located at 2918 Vine, was approved in 2014 and is in effect for up to 22 years.

The city commission approved up to $3.1 million in eligible reimbursement costs - hard infrastructure costs determined by city policy.   

"They were broken into Phase 1 and Phase 2 with completion deadlines set by the owner," said City Manager Toby Dougherty during last week's commission work session.

Both deadlines, selected by the property owners, were in 2016.

The developer has spent $2 million of the $3.1 million, which was certified by the city.

 "There was a million dollars that was never certified, never made the project deadline. That's what they're asking the development agreement to be amended for, to include that," Dougherty explained. "So far out of the sales tax collections, they've been reimbursed $1.3 million of the $2 million that was certified." 

Phase 2 expenditures were to be for interior renovations and finish work. 

If commissioners approve the amendment request at their Thursday meeting, it will create an 18-month deadline for the owners to expend the dollars and submit for reimbursement of the $1 million. 

"What they would like to do is be reimbursed to do is be reimbursed for dollars they are spending for the creation of Ollie's Bargain Outlet, which is being done now," Dougherty continued.

"They have interior renovations; they've got some work in the parking lot. They've got some exterior work they need to do and they've got quite a bit of HVAC work they need to do." 

Sandy Jacobs, commissioner, said she recently checked out Ollie's Bargain Outlet in Wichita and liked it. "It's a good operation," she said. 

"I think (Big Creek Crossing) is working diligently. ... I hope they're redoing the mall for all outside entries with anything new that comes up.

"I just don't want that place sitting empty," Jacobs added. "I think that would be really detrimental to that area of Vine Street. I don't have any problem with extending (this)."

Shaun Musil was on the city commission in 2014 when the CID was created. 

He said he's excited about Ollie's coming into the north end of the mall but is disappointed with the overall renovation progress.

"The key thing is how much (city sales tax) it brings in," Musil said. "We're a community where sales tax pays our general fund." Fire, police and parks are among the city departments supported by the general fund. 

Based on information from the owners, the city estimates Ollie's Bargain Outlet annual sales tax to be between $70,000 and $87,500 each year the CID is in effect. 

"I feel like they do everything on the cheap," Musil said. "I drove through the parking lot just before I came here. You get past the front, it's an absolute mess.

"But people still go there to shop. They've brought businesses in."

Musil said it would be difficult for him to vote for the CID amendment request, noting an area of brick facade that has been missing from the front west side of the facility for about three years. 

He asked Dougherty if the city can hold future CIDs to higher standards, such as taking care of a business parking lot. "Or is that overreach?" Musil wondered. 

Dougherty noted this is the city's first and only renovation CID as opposed to several CIDs also in effect that are outcome-based.

"Maybe we should have been a little more specific on exact details...  The parking lot, they were going to 1.5 to 2 inch mill and overlay, but we didn't nail them down to the specific geographic size." Dougherty and Musil both said they accepted blame for the 2014 negotiations. "I think we could have done a better job of asking for details," Dougherty said, "and then you can hold them to more accountability."  

Mayor Mason Ruder said he didn't see why the city wouldn't approve the CID modification.

"We've done it before for other (CID) projects. It's not necessarily changing anything," Ruder said. "It's just kind of allowing them to potentially  hold on to another anchor store, hopefully."

Ruder also agreed with Musil that he was "disappointed in them for kind of pushing it off for as long as they have and not taking care of it as they should have." 

The city has not given "one dime" to Hays Mall, LLC, Musil pointed out. "Anytime the city has a CID, and we have multiple, the city doesn't give them money. If you shop there, you're contributing it." 

Jacobs feels Big Creek Crossing is almost becoming a "discount mall."

"There are some nice stores in there. But there's absolutely a demographic we need to be focused on." 

Commissioner Reese Barrick was absent from the work session.