By BECKY KISER
Hays Post
Amongst a lot of public interest, it's now official that Chick-fil-A is coming to Hays.
Hays city commissioners will look at Thursday at a resolution of intent to issue industrial revenue bonds (IRBs) for the developer of a new Chick-fil-A quick-service restaurant at 3404 Vine, the site of the former Rodeway Inn motel, which was closed and razed.
Construction of the $6.2 million project is expected to begin in the second quarter of 2026, following the city commission's approval of the requested incentive. Completion of the restaurant is anticipated at the end of the year.
The specific economic development incentive being requested through the IRB issuance is a sales tax exemption. All purchases related to the construction of the project included in the IRB issuance are eligible for an exemption from all state and local sales taxes.
An IRB issuance does not count against the city’s debt limit or debt rating and does not require taxpayer commitment. Instead, the city acts as a conduit issuer, and payment obligations belong to the developer.
Once construction is complete, the exemption would expire, and all sales and purchases at the location would be subject to regular sales tax collections.
Jarrod Kuckelman, assistant city manager, said initial annual retail sales of the restaurant are estimated by the developer at about $5.5 million. At the city's current sales tax rate of 2.25%, that would generate about $123,750 in average annual sales tax revenue for Hays.