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Commission approves intent to issue industrial revenue bonds for ANA Coors warehouse
Summary
The Hays City Commission held a public hearing and adopted a resolution signaling the city's intent to issue Industrial Revenue Bonds and grant tax incentives for ANA Coors' proposed 43,000-square-foot warehouse and distribution facility in the industrial park; the action passed unanimously.
The Hays City Commission on April 24 adopted a resolution evidencing the city's intent to issue Industrial Revenue Bonds (IRBs) and to consider tax incentives for ANA Coors' proposed warehouse and distribution facility in the Hays Industrial Park.
Assistant City Manager Jared Kuckelman told the commission the project would move ANA Coors' operations to a new facility on East Ninth Street near Commerce Parkway and is expected to be about 43,000 square feet with construction beginning this summer and completing around mid-2026.
Kuckelman said the estimated total investment for the project is about $7,000,000, and the developer is requesting both a sales-tax exemption on construction materials and a 10-year property tax abatement. He estimated the city sales-tax benefit foregone would be just under $39,000 and that, under the city's economic development policy, the project would be eligible for a 50% property tax abatement amounting to roughly $260,000 in city property taxes abated over 10 years, with final figures set during IRB closeout and issuance.
The commission held the state-required public hearing and took no public comments. Commissioner Musil moved to close the hearing; Commissioner Cunningham seconded. The commission then voted to adopt Resolution Number 2020Five-three, "Evidencing an Intent to Issue Industrial Revenue Bonds," on a motion by Commissioner Cunningham, seconded by Commissioner Barrick. The resolution passed 4-0.
Kuckelman emphasized that IRBs are conduit financing: the city does not issue general-obligation debt or assume payment obligations, and the developer is solely responsible for repayment. He said the final abatement percentage and exact developer benefit will be finalized through the IRB closeout process.
The commission's action now allows staff and the developer to proceed with the IRB issuance process, including the statutory steps that follow a declaration of intent.
The resolution and related IRB terms will return in later steps as the developer finalizes project costs and the issuance documents.
