Commission sets May 8 public hearing for Tallgrass Phase 4 RHID

The Hays City Commission adopted a resolution setting a public hearing for May 8 to consider establishing a Reinvestment Housing Incentive District (RHID) for the Tallgrass Second Edition Phase 4 development.

Assistant City Manager Jared Kuckelman told commissioners that Heart of America, the developer, proposes roughly 101 residential lots for phase 4 and is requesting an RHID to reimburse eligible infrastructure costs. The developer proposed a deposit equal to 30% of projected infrastructure costs; staff estimated eligible project costs at approximately $6,000,000 and estimated the RHID could generate about $6,867,000 in incremental property-tax revenue over 25 years. Kuckelman explained RHIDs capture incremental property-tax revenue for up to 25 years to offset infrastructure costs and that at the end of the RHID term full improved valuation reverts to taxing jurisdictions.

Kuckelman also explained the process steps: city submission of district lines for state review (Secretary of Commerce), a statutory public-notice period, a public hearing on May 8, and potential ordinance adoption in early June. Staff noted that if revenue shortfalls occur within six years, the city could take ownership of undeveloped lots per terms described in the proposed plan. Commissioners asked about the statutory timeline and public-notice requirements; staff said the schedule aims to allow adequate time for required notices and review by state and other taxing entities.

Commissioner Reuter moved to adopt Resolution No. 2025-002 to set the public hearing; Commissioner Musil seconded. The motion passed on a voice vote with all commissioners saying "aye." The public hearing will be held May 8, after which the commission may vote on an ordinance to establish the RHID and adopt the development plan.