Aug 24, 2024

🎀New Hays housing, business developments okayed for economic development incentives

Posted Aug 24, 2024 10:01 AM


By BECKY KISER

Hays Post

Various funding mechanisms for proposed new housing developments and business expansions were all approved at Thursday's Hay City Commission meeting.

Proposed Phase 4 of Tallgrass Housing Development 2nd Addition. Courtesy image
Proposed Phase 4 of Tallgrass Housing Development 2nd Addition. Courtesy image

The city’s first-ever Reinvestment Housing Incentive District (RHID) was established in the Tallgrass Addition in 2020 and is nearly fully occupied.

Local economic development interest group, Heart of America (HOA), was the developer.

Realizing the continued need for new housing, HOA asked Hays to cash-out its position by assigning future RHID revenues to the city in exchange for a $2.5 million economic grant. The trade will allow HOA to continue developing additional housing of Tallgrass Phase 4 just north of the current project. 

Bonds will be issued to finance the economic development grant as well as the new advanced water metering infrastructure. 

The city signed intents to issue industrial revenue bonds for rehabilitation of a vacant building at 11th and Main by local developer Adam Pray and expansion of Gella's Diner and Liquid Bread Brewing Company, LLC on East 11th.

Chestnut Suites LLC is planned for 1108 N. Main. Photo by Cristina Janney/Hays Post
Chestnut Suites LLC is planned for 1108 N. Main. Photo by Cristina Janney/Hays Post
Proposed expansion of Gella's Diner at 121 E. 11th, immediately east of the restaurant and brewery. Courtesy photo
Proposed expansion of Gella's Diner at 121 E. 11th, immediately east of the restaurant and brewery. Courtesy photo

Pray is developing a former bank building into Chestnut Suites, high-end hotel housing for short and long-term visitors to downtown Hays. Gella's will be adding an event space and an area for Fort Hays Tech-North Central culinary classes.

Artist's concept of Depot Addition, 10th and Walnut.
Artist's concept of Depot Addition, 10th and Walnut.

Also approved was a resolution to set a Sept. 26 public hearing for establishing an RHID for the Depot Addition housing at 10th and Walnut in downtown Hays. The private developer is Hays resident Michael Graham.

Fees will be going up for most admissions to the golf course, resulting in an estimated $24,000 in additional annual revenue.  The card shed fee will remain the same.

"This should close our revenue gap about half way," said Jeff Boyle, director of parks.

Fort Hays Municipal Golf Course
9-Hole β€” $17
18-Hole Weekday β€” $23
18-Hole Weekend/Holiday β€” $26
Annual Single Membership β€” $575
Annual Couple Membership β€” $720
Annual Family Membership β€” $740
Trail Fee β€” $220

Hays Aquatic Park
Daily Fee β€” $5
Season Pass β€” $53

Commissioners also agreed to an increase in daily admission to the Hays Aquatic Park and for a season pass. The daily entrance fee to the neighborhood Wilson Pool will remain the same.

Additional estimated revenue is $15,000 a year, also narrowing the operating gap. 

Both the aquatic park and golf course are considered quality-of-life amenities and not necessarily money-makers for the city. The commission will assess the fees again in 2027.

The low bid from T&T Builders, Hays,  of $16,500 for Hays Aquatic Park concrete repairs was also approved. 

Monthly updates about city department projects and upcoming events were also presented. 

Toby Dougherty, city manager, was absent from the meeting.