By BECKY KISER
Hays Post
Two commercial development projects each took another step forward following Thursday's Hays city commission meeting.
Exit 161 First Addition
A resolution was approved accepting the final plat of 161 First Addition at the northeast corner of the Interstate 70, exit 161, interchange. The property is owned by the city of Hays.
The Hays Area Planning Commission and city staff had already recommended approval, said Jesse Rohr, public works director.
The final plat includes two blocks with a total of 13 lots ranging in size from 1.2 to 9.7 acres. City utilities are being installed to the property which will available to extend for future commercial development.
Chick-fil-A industrial revenue bonds
Construction of a new Chick-fil-A quick service restaurant at 3404 Vine is substantially complete according to the developer and is expected to open in early fall.
The developer requested industrial revenue bonds (IRBs) for the project, using the city as an issuance conduit. It will allow a sales tax exemption for all purchases related to the construction. On March 26, the commission adopted a resolution of intent for the IRBs.
Jarrod Kuckelman, assistant city manager, presented an ordinance to authorize the issuance of the IRBs not to exceed $6.25 million. Commissioners approved the ordinance.
No property tax abatement is requested. The bond issuance does not affect the city's debt limit or rating, and there is no taxpayer commitment.
The developer estimates initial total annual retail sales will be $5.5 million. At the city’s current sales tax rate of 2.25%, it would generate about $123,750 in annual sales tax revenue for the city.
R9 water project update
A six-month update of progress on the R9 long-term water supply project for Hays and Russell was presented by staff. The R9 Ranch is in Edwards County.
John Braun, project manager, said the wellfield and pipeline designs are complete.
The city has made purchase offers for tracts along the 70-mile pipeline route to the landowners. Braun said 117 of 130 tracts have been acquired.
Chris Smith, property manager, reported on the native grass plantings completed in 2025 and 2026 and the success of the walk-in-hunting agreement with the Kansas Department of Wildlife and Parks.
An update on the regulatory proceedings underway in the Kansas Supreme Court, the Kansas Water Transfer Hearing Panel and an Edwards County zoning lawsuit, was presented by Toby Dougherty, city manager.
He summed up the progress with two words, "still waiting."
The water transfer project has been underway for 11 years.
SEE RELATED STORY: Kansas lawmakers weigh where authority lies in R9 Ranch water dispute.
The complete July 23, 2026 Hays City Commission meeting is available to watch below, courtesy of Nex-Tech.