Dec 08, 2023

🎥 Industrial revenue bonds for Grow Hays microfactory considered by city of Hays

Posted Dec 08, 2023 4:49 PM
The 30,000-square-foot Grow Hays microfactory, Ninth and Commerce Parkway, is scheduled to open in mid-February. It will be an incubator for small and startup manufacturing companies. Photo by Becky Kiser/Hays Post
The 30,000-square-foot Grow Hays microfactory, Ninth and Commerce Parkway, is scheduled to open in mid-February. It will be an incubator for small and startup manufacturing companies. Photo by Becky Kiser/Hays Post

By BECKY KISER
Hays Post

Construction of the microfactory in east Hays is substantially complete with an anticipated opening in mid-February.

Grow Hays has requested the city of Hays issue $3.5 million in industrial revenue bonds for the project.

City commissioners reviewed the required ordinance Thursday afternoon with its bond counsel Gilmore & Bell, Kansas City. On Sept. 22 following a public hearing, the commission had adopted a resolution of intent to issue the bonds.

The industrial revenue bonds would provide a sales tax exemption for project-related materials and provide a property tax abatement for up to 10 years. 

Industrial revenue bonds do not count against the city’s debt limit nor affect its debt rating, and do not affect taxpayers. Instead, the city acts as a conduit issuer and the payments must be made by the developer.

The commission is expected to vote on the ordinance at its Dec. 14 meeting.

Hays Recreation Commission also presented a request for its share of the 2023 operating loss at the Hays Aquatic Park.

This year the total loss was $59,319. The rec commission pays up to $26,000 of any loss. That leaves the city paying $33,319.

Jeff Boyle, Hays Parks director, reported attendance at the Hays Aquatic Park decreased in 2023 with 43,204 patrons visiting the pool as compared to 45,816 patrons in 2022. Wilson Pool visitation was up by seven, with 2,903 patrons this season.  

Grant Lacy, Hays Recreation Commission's aquatic director, told city commissioners that 20 percent of the pools' operating days were affected by weather.

"We had to either close early, open late or not open at all this summer," Lacy said.

Boyle also reported the Bickle/Schmidt Sports Complex showed a profit of $15,213 this year.

Two vehicle abatement recommendations at 3312 Lincoln Drive and 2507 General Hancock Road were presented by Public Works Director Jesse Rohr.

"You have to afford everybody due process," said Toby Dougherty, city manager, "and some people take advantage of that due process." 

Both requests will move on for action at the Dec. 14 meeting. 

During other items for discussion, Vice-Mayor Sandy Jacobs brought up a proposition to increase the pay for city commissioners.

"This would be the first time it's been considered since 2003," she said.

Jacobs began thinking about it during the November general election when only two candidates besides the incumbents ran for city commission.

She wants to see more people interested in running for office and believes increased compensation would be a good incentive.

Jacobs estimated she spends an average minimum of 15 hours a week on city business.

"Fortunately, I'm retired and can do that a lot easier than some people," she said.

She said city commission meetings and work sessions start at 4 p.m. on four Thursdays each month.

"Some people would have to leave their jobs to attend, and they may be losing their pay of an hourly wage."

City of Hays
City of Hays

The five city commissioners, including the mayor, are currently each paid $150 a month, for a total of $1,800 a year. 

Jacobs is proposing a $63,000 budget item for 2024 "to attract a more diverse group of people."

"That relates to about $1,000 a month for a commissioner and $1,250 a month for the mayor. ... We have the money to do it," she said.

The five city commissioners for similarly-sized Junction City receive $8,400 in annual pay, while the mayor is paid $10,800. 

The small northwest town of Goodland, with a population of 4,465 people, pays its mayor $4,200 a year. Its five commission members each receive $3,600 annually.

"I ran for this position to serve the community, not for the compensation" said Alaina Cunningham, commissioner. "But when you presented the numbers from these other communities forward, I was very shocked in learning how low our compensation was compared to other communities.

"Thinking through it, for me, is the potential draw of a more diverse group [of commissioners]," she said.