Nov 27, 2024

Successful Tallgrass housing Phases 1-3 moves into Phase 4 in east Hays

Posted Nov 27, 2024 11:01 AM
The reinvestment housing incentive district for Tallgrass 2nd Addition Phase 4. City of Hays image
The reinvestment housing incentive district for Tallgrass 2nd Addition Phase 4. City of Hays image

By BECKY KISER
Hays Post

The first three phases of Tallgrass 2nd Addition housing in east Hays have been so successful the developer Heart of America is moving on to Phase 4.

Heart of America is a nonprofit local group that helps further economic development in Ellis County.

Phases 1-3 are almost built out using an existing Reinvestment Housing Incentive District (RHID) at East 22nd Street and Wheatland Avenue. A new RHID is requested by the developer immediately north of the current RHID to Interstate 70.

It's a multi-step process.

City commissioners approved a resolution Tuesday regarding a shortage of quality housing based on the 2022 needs study by Fort Hays State University Docking Institute of Public Affairs. The findings must be approved by the Kansas Department of Commerce.

If approved, the RHID will capture the incremental real property taxes, less the state's 1.5 mills and Hays USD 489's 20 mills, for up to 25 years.

Heart of America is proposing the city finance and construct the project using bonds while utilizing the RHID revenues to offset the city's costs.

The developer will provide a deposit equal to 30% of the projected infrastructure costs.

All 54 houses in Phases 1-3 have been purchased, although 12 are still under construction.

Tallgrass 2nd Addition Phase 4 plat map. Courtesy image
Tallgrass 2nd Addition Phase 4 plat map. Courtesy image

Phase 4 is platted for about 101 lots. The development is almost twice the size of the other three combined. 

"That's a lot of lots," said Doug Williams, Grow Hays executive director. "Based on the arrangement we have for repayment of bonds, we're going to be very anxious to get things built."

"If that pace slows for any reason, there may be an opportunity to look at different price points for homes. There are also some areas that might lend themselves well to multi-family dwellings," Williams said.

The new houses in Phase 4 could look slightly different from the existing development.

"We have a couple of areas we'd like to look at for higher density single-family homes, which would require a planned development.

"But primarily, we hope to continue the same kind of concept that's been so successful so far," Williams said.

According to a study, to sustain population growth of 1%, or 220 new residents, for the city of Hays, the community needs to add 88 living units per year. 

Heart of America expects construction to begin in 2025 following all city approvals. 

In other business, the commission heard

• Financial report for October 2024
• Monthly progress reports on department projects and activities
• Highlights of December community events in Hays

Mayor Sandy Jacobs was absent from the meeting.