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Hays adopts TIF plan, authorizes 2.0% CID sales tax to support Exit 157 travel plaza
Summary
The City of Hays on April 9 approved Ordinance No. 4097 to adopt a Tax Increment Financing (TIF) project plan and Ordinance No. 4098 to create a 2.0% Community Improvement District (CID) for the Exit 157 24-7 Mixed Use Project, permitting pay-as-you-go reimbursements to Triplett, Inc.
The City of Hays on April 9 unanimously adopted an ordinance to establish a Tax Increment Financing (TIF) district for the Exit 157 24-7 Mixed Use Project and approved a separate ordinance creating a Community Improvement District (CID) that levies a 2.0% sales tax to help fund the development.
Assistant City Manager Jarrod Kuckelman told the commission that Triplett, Inc., the proposed developer, has applied for TIF, a CID and industrial revenue bonds to support construction of a commercial travel plaza and related infrastructure. "The Developer estimates the TIF will generate approximately $4,538,166 of revenue over the maximum 20-year term," Kuckelman said, and staff estimated the proposed 2.0% CID sales tax would generate about $2,000,000 over the CID's maximum 22-year term.
All materials were reviewed by the city's special legal counsel, Gilmore & Bell, P.C., and Kuckelman said the proposals meet Kansas law and the city's Economic Development Policy. Mayor Mason Ruder opened a public hearing at 4:31 p.m.; resident David Koshiol asked whether the developer truly needed incentives or would build without them. No other public comments were recorded.
Commissioner Shaun Musil moved and Vice Mayor Alaina Cunningham seconded to pass Ordinance No. 4097, adopting the TIF project plan and approving the development agreement; the motion passed with all members voting aye. The commission then opened and closed a public hearing on the CID and, by the same vote, passed Ordinance No. 4098 establishing the CID and levying the 2.0% CID sales tax.
Commissioner David Vilaysing asked that customers be made aware of the special tax districts in the development. City Manager Toby Dougherty confirmed that the city does not use a separate metric system for TIF incentives, responding to a question about whether a TIF-specific matrix exists.
The ordinances authorize pay-as-you-go reimbursement structures and permit the developer to seek tax-exempt financing through industrial revenue bonds; specific payout schedules, eligibility for reimbursement and timing will be determined under the approved development agreement and applicable state law.
Ordinance No. 4097 and Ordinance No. 4098 passed by unanimous vote and the development agreement was approved as presented. The commission indicated support for the project and asked staff to ensure transparency about the special tax structure to customers and the public.
