May 05, 2022

Ellis City Council advances A&W tax abatement; developer eyes next project

Posted May 05, 2022 11:01 AM

'We are going to grow Ellis and make things happen here'

By JAMES BELL
Hays Post

ELLIS — Developer SJ Singh has big plans in Ellis.

But big plans require big money. As construction continues on his A&W restaurant at 203 W. Second, Singh requested a tax abatement from the Ellis City Council a tax abatement that would help offset development and opening costs.

The council took up the measure at Monday’s meeting.

Opening his request, Singh shared why he chose to open an A&W and the connection to Ellis.

“As we were finalizing this, I came to know we used to have A&W in the city a long time ago,” Singh said.

A&W also holds a special meaning for Singh.

“My first dinner was at A&W when I landed in this country 35 years ago,” he said.

His fondness for the restaurant chain and the need for a new restaurant in Ellis led to his decision to open the location, he said.

“I think it will bring memories for the old A&W and create new memories,” Singh said.

The A&W, set to open this summer, is the second property Singh operates in Ellis after purchasing the Days Inn last year, located near the future A&W.

And he shared with the council that he is just getting started.

“We just finalized another land deal here in Ellis,” Singh said.

He hopes to develop the four acres of land into an automotive row, featuring a car wash, repair shop and possibly an automotive dealership in the future.

He said a car wash was frequently cited as a need in the city by residents.

He also said operations that create jobs in Ellis are his “first consideration” and an important part of the decision-making process.

And he sees Ellis as primed for overall economic growth.

“I think Ellis has a lot of potential to build and grow,” Singh said. “You’re going to grow in the right direction with the right support and the right people.”

He also shared that Hays-based contractor RDH Electric and Construction would direct his construction efforts in Ellis with the council.

“We are going to grow Ellis and make things happen here,” Singh said.

While he is committed to the development, he told the council anything they can do to help the projects move forward would be helpful.

Singh said the major support from the city would come in the form of tax abatements.

“I think that is the big thing any business needs to succeed in the first few years,” he said.

Those funds would help ensure the business launches successfully and free up capital for future projects.

City attorney Olavee Raub told the council a tax abatement would likely come in the form of industrial revenue bonds.

She said with construction started, the process should be started now in order to consult with bond counsel to begin the process of issuing the bonds, noting it would likely take months to complete.

Raub informed the council it would need to pass a resolution of intent to begin the process.

Councilmember Jolene Niernberger made a motion to pass the resolution. Councilmember Tricia Pritchett offered a second, and the motion to start the IRB process was passed by the council in a 6-0 vote.