By BECKY KISER
Hays Post
Three new housing and business development projects in Hays are moving forward after several funding mechanisms were approved by city commissioners on Thursday.
Hays developers plan two downtown housing projects.
Adam Pray has purchased the former Hays State Bank building at 11th and Main to redevelop into a new luxury short-term rental Airbnb called Chestnut Suites.
The city approved a $300,000 Community Development Block Grant agreement between Hays and the state commerce department and between Hays and Chestnut Suites, along with a repayment agreement with the developer for the $3.2 million project.
An ordinance establishing a Reinvestment Housing Incentive District (RHID) was also approved, and a development plan for housing and public facilities at 10th and Walnut will be considered.
Hays developer Michael Graham Rentals is planning to build 48 apartments on the site of the former railroad depot parking lot in downtown Hays.
The district is expected to generate about $1.1 million of revenue during its maximum 25-year term. The revenue would reimburse the developer for an estimated $692,000 in RHID-eligible project costs on a pay-as-you-go basis.
"The investment you guys are making in downtown Hays is just fabulous," said Mayor Sandy Jacobs to Pray and Graham, who were in the audience.
"We're so lucky to have guys like you," said Mason Ruder, vice-mayor. "You're taking this risk and investing it right back in the community."
Commissioner Alaina Cunningham said she thought even the residents already living near the two planned developments will be excited about the new projects.
Funds were authorized for the 27th and Main Street business development project. Astra Bank is relocating and building a new facility on that site.
The city will pay $89,000 to construct the stormwater management infrastructure at the south end of the property and $205,000 to extend 26th Street through the development, which is half of the cost. The bank will pay the remainder.
Access to the new bank will be from 26th Street.
The city of Hays has purchased 1100 Fort, the existing Astra Bank building, to redevelop it as a new police station and municipal court facility.
Commissioners also awarded a $3.03 million bid by APAC-Kansas, Hays, for construction related to school improvements along the East 13th Street corridor between Canterbury Drive and Commerce Parkway.
The reconstruction is a joint project between the city, Ellis County, the Kansas Department of Transportation and USD 489. The school district will reimburse the city $763,000 for their portion of the project.
The city’s portion of the project includes reconstructing the road from Anthony Drive to Commerce Parkway, including widening sections of East 13th Street from two to three lanes, installation of a multi-use path along the north side of the entire project and a mill and overlay of the complete roadway.
USD 489 is responsible for adding two right-turn lanes, pedestrian crossings, and upgraded signals at 13th and Canterbury.
Mayor Shaun Musil, Commissioner Reese Barrick, City Manager Toby Dougherty and Finance Director Kim Rupp were absent from the meeting.