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Commission approves resolution to enable sales‑tax exemption for proposed Chick‑fil‑A
Summary
The Hays City Commission voted 5–0 to adopt a resolution evidencing intent to issue industrial revenue bonds (IRBs) that would allow a sales‑tax exemption for a proposed Chick‑fil‑A at 3404 Vine Street. Commissioners discussed projected sales, jobs and local fiscal tradeoffs.
The Hays City Commission voted 5–0 on March 26 to adopt a resolution of intent that would allow issuance of industrial revenue bonds, enabling a sales‑tax exemption for a proposed Chick‑fil‑A at 3404 Vine Street.
Assistant City Manager Jared Kuckelman said the project would construct a new restaurant with parking and internal site work and that the developer is seeking only the sales‑tax exemption on construction materials. He told commissioners the developer estimates total investment at about $6.2 million and annual retail sales at roughly $5.5 million, which the city’s current rate would generate about $123,750 in sales tax annually if those sales materialize.
Kuckelman noted the resolution of intent is an early procedural step: the actual bonds (and the exemption certificate) would be issued only after the project reaches substantial completion, and any exempted tax would be repaid by the developer if bonds are not issued.
At the dais, Commissioner David Koschel challenged the use of incentives for a national chain. "So the real question isn't can we do this, it's should we?" Koschel said, arguing the city should require a clear "but‑for" case before forgoing tax revenue and warning that repeated incentives shift revenue away from existing local businesses.
Other commissioners expressed optimism about job creation and local economic activity. Commissioners noted traffic and site access concerns and said they expect the developer to work with public works and police department staff on traffic flow and stacking for the drive‑through.
The motion to adopt Resolution No. 2026‑004 (evidencing intent to issue IRBs for the Chick‑fil‑A project) was moved by Speaker 6 and seconded by Speaker 1; the vote passed 5–0.
Next steps: the resolution allows the developer to pursue the exemption certificate later in the IRB process; no bond issuance or tax exemptions are in effect until those later administrative steps are complete.
