Jul 16, 2021

Commissioner Mellick on DHDC: 'It's time to grow up and fund themselves'

Posted Jul 16, 2021 11:01 AM
Ron Mellick (right) explains to other Hays city commissioners why he believes the city should no longer be funding DHDC (Downtown Hays Development Corporation) during Thursday's 2022 draft budget discussion.
Ron Mellick (right) explains to other Hays city commissioners why he believes the city should no longer be funding DHDC (Downtown Hays Development Corporation) during Thursday's 2022 draft budget discussion.

By BECKY KISER 
Hays Post

"It's time to grow up."

That was the message from Ron Mellick, Hays city commissioner, to the Downtown Hays Development Corporation (DHDC) during further discussion of city funding to outside non-profit agencies in 2022 during Thursday's work session.

Mellick said he supports DHDC and its many projects to bring visitors to downtown Hays and to enhance the community but believes the city's funding has gone from "seed money to entitlements."

Mayor Sandy Jacobs has supported DHDC's $54,000 request from the beginning. Vice-Mayor Mason Ruder agreed to the requested amount Thursday.

According to Mellick, the city has given DHDC about $950,000 since 2004.

"I talked to former commissioners. And at that time (2004) they gave this money as seed money to get DHDC going," Mellick said. "It seems like they keep coming back and this has changed from seed money to entitlement money."

Mellick noted that Big Creek Crossing, 2918 Vine, asked the city to approve a CID (Commercial Improvement District), which allows for an extra tax to be collected for improvements. "We are not giving them funds directly."

"I see the same thing for DHDC. They need to start looking at self-funding. Every year I hear 'if you don't fund us, we're going to close up.'

"...They've had 20 years to show to the businesses downtown why they should be funded. It's time for them to grow up and fund themselves," Mellick said. "If they haven't proven to the downtown businesses their worth, then they have a fundamental problem... ."

Commissioner Michael Berges said he would stick with the public comments he made last year. "They need to come to us with a reduction (in the requested funding amount)."

Commissioner Shaun Musil was absent from the meeting.

"I'm not going to change how I feel about this funding," said Jacobs, who formerly served a president of the DHDC board. "I see the things that are happening in our downtown because of what DHDC does, along with the Convention and Visitors Bureau, to make sure that Hays is a destination. 

"It's not just sales tax that's generated from downtown," she said. "It's to bring lots of other events and activities to our community." 

The city's general fund is primarily funded by the city sales tax. 

Jacobs said DHDC is looking at two other funding mechanisms - a BID (Business Improvement District) and a CID. 

"I think they are very intentionally looking at that goal."

Commissioners also reiterated their support for an increase of funding for Grow Hays - the city's economic development arm - to $180,000, up from the requested $100,000.

Another draft budget review and discussion is scheduled for the August 15 work session.

A discussion of the twice-revised proposed ordinance allowing work-site/utility task vehicles (UTVs) and micro-utility vehicles to be driven on city streets brought about legal questions directed to Hays Police Chief Don Scheibler and City Attorney John Bird.

A registration system would be set up with the police department with appointments made on the city website.

The vehicles, by state law, cannot operate on a state highway - such as Vine Street - other than to cross it.

Jacobs again expressed her desire to also allow golf carts on city streets, which was opposed by Mellick. 

Berges suggested dealing with the UTV ordinance first and then considering golf carts as a separate issue at a future meeting.

Both discussions will move on to the next city commission meeting for possible action, along with two nuisance abatement requests at 607 Elm Street and at 3312 Lincoln Drive.