By BECKY KISER
Hays Post
Hays city commissioners unanimously approved six items for two development projects during their meeting on Tuesday.
Tallgrass 4th Addition
Jesse Rohr, public works director, presented recommended bid awards related to the new Tallgrass 4th Addition housing development in east Hays, a joint venture between Heart of America Development Corporation and the city.
The low bidder for street, storm sewer, water and sanitary sewer improvements was Hess Services, Hays, at slightly more than $4 million.
Shaun Musil, commissioner, expressed concern about some poor work on a previous city project by Hess Services, even though he said he knew it was an "outstanding company."
Rohr and Toby Dougherty, city manager, said they had discussions with Hess about the work done when it was just starting in the construction business and now felt comfortable about improved quality moving forward.
Rohr also recommended a construction inspection agreement with Sloan Engineering and Inspection, Hays, for $196,000.
Platting and zoning of the proposed 101-lot development were completed early this year. The project is planned to be built in one phase, beginning in March.
I-70, Exit 161
A rezoning request from agriculture to commercial general district, and annexation of the city-owned 90 acres on both sides of Interstate 70, Exit 161, were presented by Rohr. The south side acreage is the site of the city's tree farm, which Rohr said would be relocated as development gets underway.
A $3.9 million contract for the installation of water, sewer and street infrastructure has already been approved with Smoky Hill, Salina.
Funding for construction services will be paid from general obligation bonds. A portion of the project will be funded with a $2 million state grant acquired by Grow Hays.
The initial new infrastructure would serve about 11 lots, ranging in size from 2 to 8 acres, for commercial and residential development.
In one vote, commissioners also approved an update to the city's boundary map to include the annexation of two properties, Berexco and Covenant Estates 1st Addition, reappointed Hali Bielser, Hays resident, to the CARE Council, and approved a lease and option-to-purchase to Agiliti for its upcoming expansion.
Economic incentives presentation
Doug Williams, Grow Hays executive director, gave a short review of the economic incentives available to the city and their local impact.
"These are tools that are used to produce a desired outcome, typically an economic outcome," Williams said.
"Almost all the incentives that are offered are conditional, meaning that the recipient has to achieve some outcome or they're not going to get them."
Williams used tax increment financing (TIF) as an example.
"It allows them to recapture some of the property tax that they, in fact, create. If they don't create it, they don't get the benefit," he said.
Most economic development incentives capture only the dollars that they have created.
"Before that TIF or RHID (reinvestment housing incentive district) goes into place, that piece of property is generating basically zero in terms of property tax revenue," he said.
"If the developer goes out there and creates the asset that is then taxed at a higher rate with the incentives that are put in place, they are able to capture a portion of that to try and recover some of their investment in the infrastructure and things they put into a project," Williams said.
Williams said he would call the tools investments, rather than incentives.
"When a dollar is spent, it ripples through the community and generates other dollars. ... Typically, in new construction, it's about 60%. ...
This was the final meeting for outgoing commissioner Reese Barrick, who reviewed the city's major accomplishments during his time in office. He also thanked the department heads, administrators and other commissioners for their work.
David Vilaysing was elected to a two-year term in November and will be sworn in as a new commissioner in January.
A 15-minute executive session was called at the end of the regular meeting to discuss matters pertaining to the acquisition of real property.
No action was taken following the executive session.