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Hays staff recommend ordinance to authorize industrial revenue bonds for Chick-fil-A project to finalize sales-tax exemption
Summary
Assistant City Manager Jarrod Kuckelman said Chick-fil-A, Inc. requested Industrial Revenue Bonds (IRBs) to secure a sales-tax exemption for construction purchases; staff and city special counsel found materials consistent with Kansas law and the ordinance to authorize IRBs will be before the Commission on July 23, 2026.
Assistant City Manager Jarrod Kuckelman told the work session that Chick-fil-A, Inc. submitted an Application for Economic Incentives and requested issuance of Industrial Revenue Bonds (IRBs) to benefit a planned quick-service restaurant project. He said use of IRBs would allow the developer to obtain a sales-tax exemption for purchases related to construction; no property tax abatement was requested.
Kuckelman said the City adopted a Resolution of Intent on March 26, 2026, and that, based on that resolution, the developer obtained and used a sales-tax exemption certificate while construction was underway. He added that construction is "substantially complete" and that passage of the IRB ordinance is required to finalize the sales-tax exemption. All materials were reviewed by the City’s special legal counsel, Gilmore & Bell, P.C., and were found to meet requirements of Kansas law and the City’s Economic Development Policy.
Staff recommended the Commission adopt the ordinance authorizing issuance of the IRBs; the ordinance and related documents are scheduled for the July 23, 2026 Commission meeting for formal action. The work session transcript does not record a commission vote on the ordinance at the July 16 session.
