By BECKY KISER
Hays Post
Several projects that would create more jobs in Hays and advance business and housing developments were reviewed by city commissioners on Thursday.
The requests were moved on to next week's meeting for a final vote.
Agiliti Hays
A proposed expansion project by Agiliti Hays would add 140 new employees to its workforce of 91. The medical equipment manufacturer leases its facility at 500 Commerce Parkway and wants to buy, renovate and expand the buildings, which formerly housed Sizewise.
The developer is requesting industrial revenue bonds be issued, using the city as a conduit, to benefit the $6.55-million project.
The bonds would allow the developer to obtain a sales tax exemption for all purchases related to construction and a real property tax abatement for the project for up to 10 years.
Industrial revenue bonds issuances do not count against the city’s debt limit or rating and do not require taxpayer commitment.
24-7 Travel Plaza and Convenience Store
Triplett, Salina, developer of a new 24/7 Travel Store plaza to be built just north of Interstate 70, Exit 157, is also requesting the issuance of industrial revenue bonds. The city commission has already created a tax increment financing district on the property. The developer will also request a community improvement district from the city in the future.
The 9,000-square-foot travel plaza and convenience store would include gas and diesel fuel, electric vehicle charging stations, a dog park, RV overnight camp sites and some food service.
Ted Augustine, president of 24/7 Travel Stores, told commissioners it has been difficult to secure a full-service restaurant for the plaza, and project development will continue as the search for a restaurant continues.
"We do plan to proceed without one," Augustine said. "It's been a challenge to encourage a franchisee to join us out there. We do plan to provide some quick-service food in there."
The industrial revenue bonds are estimated to provide a benefit valued at $125,687. The project cost is about $11.1 million, with estimated annual retail sales of $5 million and fuel sales of $20 million.
Audience member David Koshiol, who made an unsuccessful run for the Hays City Commission, asked commissioners if it was always necessary for the city to offer economic incentives to development investors.
"We're the middle grounds between Kansas City and Denver. People are going to come here to invest in Hays," Koshiol said. "I think they'd still be willing to come and invest in Hays because they're still going to make more than they invest."
Newly re-elected commissioner Shaun Musil said when he first started 12 years ago, the city gave out no incentives and wasn't growing.
"The last five or six years we've been giving out more than we ever have, and we've seen a lot of growth. ... It's just the way people are doing business now," Musil said.
"...I hate giving out incentives," he said, "but if we bring more people to this town, more people stopping in Hays, I think it's worth it."
Commissioner Alaina Cunningham said she agreed with Koshiol that Hays is a desirable location, "but in conversations I've had with developers, without incentives, we just can't get anyone here."
Former Lincoln Elementary School renovation
Hays developer Michael Graham is seeking a Reinvestment Housing Incentive District to renovate the former Lincoln Elementary School building, 1906 Ash, into a 26-unit multi-family housing facility and to construct seven additional structures on the property, each with four units.
Graham is requesting the district finance the project on a pay-as-you-go basis over 25 years, estimated to generate $1.3 million in incremental property tax revenues collected on the project site. Eligible project costs are estimated to be about $4.3 million.
Mayor Sandy Jacobs said she is excited about the housing project, especially because it is considered infill.
"No additional infrastructure needed. Everything is there, ready to go," she said. "It's also walkable to so many places."
Tallgrass Phase 4 utilities
The city is working with Grow Hays and the Heart of America to develop 101 lots in the Tallgrass Phase 4 housing development in east Hays, which requires the installation of gas and electric utilities.
The city earlier agreed to finance infrastructure costs.
Midwest Energy requires prepayment for contracts related to electric and gas installations, estimated at $797,457. If the proposed agreement is approved, Midwest Energy will be paid from the temporary notes, which will cover all other infrastructure costs associated with the development. Reinvestment Housing Incentive District revenues would ultimately pay those costs.
North side multi-use path
The Kansas Department of Transportation solicited proposals for Hays' north multi-use path from 41st and Hall east to the Sternberg Museum of Natural History.
It will eventually connect with the HaysMed/Grove path, which is currently under construction, and the 22nd Street path.
The low bid came from Morgan Brothers of La Crosse for $1.6 million.
If approved, the city will pay $387,000, and KDOT will pay the remaining $1.2 million.
City employee health insurance
The city received a 2026 renewal proposal for employees' health insurance from Blue Cross Blue Shield, which would result in a 12.8% increase in premiums.
Market bids from two other companies were significantly higher, according to Erin Giebler, human resources director.
She told commissioners a significant portion of the premium increase is due to employee utilization, while the remainder can be attributed to market inflation.
"This is a high amount for the city but still well below the average," Giebler said. "We're still getting good rates from Blue Cross Blue Shield."
The recommended 2026 renewal agreement with Blue Cross Blue Shield of Kansas would provide employees with a triple-option health insurance, not to exceed $2,013,000. It would be funded out of the Employee Benefit Levy Fund.