Hays commission creates special benefit district for Covenant Estates, OKs engineering contract

The Hays City Commission on a unanimous vote approved a resolution establishing a special benefit district to fund infrastructure for the Covenant Estates First Edition development and separately approved an engineering services contract to design those improvements.

Assistant City Manager Jared Kuckelman told commissioners the engineer's estimate for phase one construction is "about $2,900,000." He said the city's benefit-district policy requires the developer to put 30% down, with the remaining 70% to be assessed to property owners inside the district for up to 20 years. "The resolution...creates the proposed district along with identifying the improvements that are being requested and the method of the assessment," Kuckelman said.

Under the plan presented, the first phase would develop 32 of the 54 lots on the final plat; the proposed benefit-district boundary was drawn to include the stormwater-management area on the western edge of the property. Kuckelman said nothing is final for stormwater design until engineering is complete; staff and the developer have discussed options and hope to include stormwater coverage for the whole phase.

Commissioners asked whether the city can set sale prices for homes in the new subdivision; a staff member answered the city controls plat and land-use elements but not market sale prices. Commissioners also discussed park-dedication requirements; staff said the developer will provide green space and a multiuse path that connects to 1st Street in lieu of a fixed percentage of land set aside.

Public works Director Jesse Rohrer presented the engineering-services agreement with Sloan Engineering and Consulting, described as design services, bid assistance and final bid recommendation work. Rohrer said the contract is for a not-to-exceed amount of $221,000 and would be funded from capital projects and rolled into the special benefit district so the 32 lot owners carry the 70% design and construction share.

Commissioner Musil moved to approve Resolution No. 2025-012, authorizing the creation of a special benefit district for infrastructure improvements in an estimated amount of $2,900,000 for the development of 32 lots in the Covenant Estates First Edition. The motion was seconded by Commissioner Cunningham and passed 5-0. Commissioner Reuter then moved to approve the Sloan Engineering and Consulting agreement not to exceed $221,000; that motion was seconded by Commissioner Barrack and also passed 5-0.

Next steps staff outlined: finalize engineering design, solicit construction bids in early next year, and return to the commission with ordinances to set final assessments once construction costs are known.

The commission's votes authorized staff to proceed with design and the special-benefit-district process; final dollar assessments to property owners will be set later by ordinance after bids and final costs are established.