By BECKY KISER
Hays Post
It was a short five-minute work session for Hays city commissioners last Thursday afternoon.
The sole agenda item was the first step in creating a reinvestment housing incentive district for The Grove development to be built north of Hays Medical Center on Canterbury Drive.
Plans include 12 six-plex structures, eight duplexes, 50 single-family homes, and infrastructure to support and serve the development.
The commission agreed to move on a resolution to their March 28 meeting for making certain housing needs findings and determinations.
"What that does is show the state there is a shortage of quality housing in Hays and that scenario is expected to continue," said Finance Director Kim Rupp.
"What is out of the norm is asking the city to finance the project with revenue bonds," he said.
Grow Hays is asking that the city finance and construct the infrastructure related to the project, by utilizing incentive district revenues.
If the district is created, the fund would collect incremental property tax revenues for a maximum period of 25 years. Grow Hays estimates the incentive district would generate approximately $8.425 million in revenues.
"This state tool, what it does is, you've got a wheat field right now that's generating $200 a year in property tax," Doug Williams, Grow Hays executive director said on Friday.
"When it's built out and has 50 houses on it, it's generating $150,000 a year in property tax. The RHID allows the developer to catch a significant portion of that increment ... until they have recovered their eligible costs for the development."
A 20-minute executive session was called at the end of the meeting for discussion of acquisition of real property. No action was taken afterwards.
Commissioner Mason Ruder was absent from the meeting.