By BECKY KISER
Hays Post
The most recent housing study conducted for the city of Hays shows a shortage of low-income housing.
Developers usually find it difficult to build such projects to satisfy the need, and still make a reasonable profit.
They often ask for Low-Income Housing Tax Credits (LIHTCs) from the Kansas Housing Resources Corporation. It's a highly competitive process, said Jarrod Kuckelman, assistant city manager, at Thursday's city commission work session.
There are currently four developers hoping to build low-income housing in Hays.
Three developers are seeking the state tax credits. If the LIHTCs are not awarded, those three projects are not expected to move forward, said Kuckelman. The fourth developer doesn't plan to ask for the tax credits.
The commission unanimously moved forward two resolutions of intent to issue industrial revenue bonds (IRBs). They would be specifically for sales tax exemptions during construction.
An IRB issuance does not count against the city’s debt limit or affect its debt rating and does not require taxpayer commitment.
Zimmerman Properties, LLC, Springfield, Missouri, wants to build 48 units in three buildings at 400 W. 48th, just east of Carrico Implement. Construction cost of the Willow Grove project is estimated at $9.3 million. The IRB value is about $154,000.
"Demand is very high in Hays," said Jeff Becker, a representative of Zimmerman Properties, who answered commissioners' questions about the proposed project and the LIHTCs. The city's issuance of IRBs can add up to 10 points on the LIHTC application, Becker said. "Any one county can only be awarded two tax credit requests."
The second low-income housing project request of an issuance of IRBs came from Old Town Development, Inc., Missouri. The company hopes to construct 36 units east of the intersection of 22nd Street and Cumberland Drive. The area is east of Bright Minds Academy.
Construction cost estimate for Wheatland Commons is $12.51 million. The IRB value is about $211,050.
Both resolutions will be considered for a vote at the May 14 city commission meeting.
Street reconstruction design contract
Jess Rohr, public works director, presented a proposed $94,400 engineering services contract with Driggs Design Group, PA, Hays, for major reconstruction of portions of 22nd Street, General Hays Road and Oak Street.
"These streets are between 60 and 65 years old," Rohr said.
The work would be done in 2027 and 2028.
Commissioners will vote on the recommended low bid next week.
Executive session
At the end of the meeting, Toby Dougherty, city manager, called for a 45-minute executive session to discuss data related to the financial affairs or trade secrets of corporations, partnerships, trusts or individual proprietorships.
Included in the session were Dougherty, Kuckelman, Colin Bielser, deputy city manager, Don Hoffman, city attorney, and Doug Williams, David Clingan and Kris Munsch of Grow Hays.
There was no action taken after the executive session.