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Hays commission adopts resolution signaling intent to issue IRBs for Chick‑fil‑A project
Summary
The City of Hays approved a resolution evidencing intent to issue Industrial Revenue Bonds for a planned Chick‑fil‑A, enabling a state sales‑tax exemption for construction purchases; the developer requested no property tax abatement and the vote was unanimous amid resident questions about incentives.
HAYS, Kan. — The City of Hays Governing Body on March 26 adopted Resolution No. 2026‑004 evidencing the city's intent to issue Industrial Revenue Bonds to support a planned Chick‑fil‑A restaurant, a move that would allow the developer to seek a state sales‑tax exemption on construction purchases.
Assistant City Manager Jarrod Kuckelman told commissioners that Chick‑fil‑A, Inc. submitted an economic incentives application and that the materials have been reviewed by the city’s special bond counsel, Gilmore & Bell, P.C., and were found to meet Kansas law and the City’s Economic Development Policy. Staff recommended adopting the resolution of intent as an initial step toward finalizing any bond issuance.
The resolution does not request property tax abatement. Vice‑Mayor Alaina Cunningham asked how much sales tax revenue the project would generate; Kuckelman said that at the city's current sales tax rate, $5.5 million in sales would yield about $123,750 in sales taxes to the City each year. Mayor Mason Ruder noted the potential for traffic backups at the planned site and said the developer indicated a willingness to coordinate with Public Works and the Police Department to help manage traffic flow.
A Hays resident, David Koshiol, addressed the commission to question the need for economic incentives for the project. The commission voted unanimously to adopt the resolution.
Adopting a resolution of intent is a procedural step that allows a future request for a state sales‑tax exemption certificate; it does not by itself authorize issuance of bonds or a sales‑tax exemption. If the developer later requests the certificate and the city approves a final bond issuance, the state would review the exemption request under Kansas procedures.
Next steps: the developer may request a sales‑tax exemption certificate from the State of Kansas, and the city would return to formal bond authorization and any additional approvals if and when those requests are made.
