By JAMES BELL
Hays Post
On Monday, the Hays USD 489 Board of Education heard details of a proposed Rural Housing Incentive District from Doug Williams, executive director of Grow Hays.
If approved, the RHID would allow a tax deferment for infrastructure costs in a proposed housing development east of NCK Tech in Hays.
In essence, the district would give up taxes on the parcels until the developer recoups the cost of infrastructure development.
Due to USD 489 being a separate tax entity in Ellis County, it has the ability to vote against the proposal. The city of Hays and Ellis County also have to approve the measure.
The city is set to vote on the measure Thursday. If passed, the county and USD 489 would have 30 days to veto the proposal.
As the lots are now, they generate about $150 in yearly property tax revenue, Williams said. Once developed, taxes would increase to $150,000 to $200,000.
The total cost of development is approximately $3.5 million, Willams said.
He informed the board the Heart of America developer is interested in building the homes to create a stronger economy in Hays.
“Heart of America is not in this to make money,” Williams said. "They are a not-for-profit."
While the developer typically works on commercial projects, Williams said they are finding difficulty in sustaining commercial development without available housing for employees.
"We have heard from employers that housing is a problem for them to attract employees," Williams said.
Five or six builders are interested in building the homes in the $175,000 to $225,000 range.
“We are trying to hit a price point that we think we be right on the mark,” Williams said.
Building new homes will fill a void that currently exists in the housing market in Hays.
“The bottom line is it creates inventory in a market where we have a serious problem with inventory,” Williams said. “Supply and demand is well out of whack right now."
The proposal would increase that home inventory in Hays.
Williams told the board the hope the housing will help recruit new families to Hays, helping the economy and, in turn, helping the district in the long run.
“I can see this being good for our staff and faculty,” said Craig Pallister, board member, noting it could help in recruitment for the district.
“Lots of real positives here,” Williams said.
“This is hitting several goals,” Tammy Wellbrock, board member said, noting the price point for the home development has not been done in Hays.