By NICK BUDD
Hays Post
The Hays City Commission held the official public hearing for the proposed Community Improvement District at the Hays Mall during its Thursday regular meeting, with Mayor Henry Schwaller absent due to prior obligations.
Through the CID, DP Management is proposing a 1 percent sales tax increase on sales generated at the mall property, which would be used to fund approximately $3 million in interior and exterior improvements. The CID proposal requires approval by the Hays City Commission to proceed.
Some residents addressed concerns with commissioners about issues such as the air conditioning and the overall concept of adding an additional tax at the mall property.
“I really think it’s a corporation’s business position to do their own fundraising,” said Melanie Valley, Hays. “I’m a little bit surprised that (DP Mangement) have owned the mall since 2007, and they said they’ve upgraded the roof but not the air conditioning. That’s just poor business management, in my opinion.”
Linn Ann Huntington, Hays, also addressed concerns about the air conditioning in the building, noting the south end lacks proper air conditioning, especially during the summer. Huntington, who has lived in Hays for 25 years, said she simply doesn’t shop at the Mall as much as she used to because of the problem.
Josh Vickery of DP Management said although there has been some negativity, some misconceptions about the improvements and the CID have been cleared up over the past month by talking to patrons and businesses at the Mall.
Click here for more on the proposed renovations from mall developers.
Matthew Gough of Barber Emerson law firm, who is representing DP Management and Hays Mall LLC, addressed several of the issues to the audience and commissioners. He noted more than $1 million has been spent in capital improvements under the current ownership and noted they do plan on making upgrades to the air conditioning as part of the proposed renovations.
“Without a CID, the city of Hays could be overlooking the opportunity to implement some of the city’s policies with regards to the Vine Street corridor and the overall tax base,” Gough said. “The fundamental message is that a successful mall is good and healthy for everyone. … It gives all the stakeholders a chance to maximize future success and attract out-of-town shoppers.”
While unable to comment about specifics, DP Management has said national chains have signed letters of intent to locate at the mall, although those tentative agreements are contingent upon a renovated facility.
Commissioner Kent Steward has opposed the proposal since it was brought forth and believes it isn’t the city’s job to help businesses with these kinds of ventures.
“Contrary to so many things that are happening in other communities, the last thing a municipal government should be doing is meddling in the marketplace and, by doing that, short-circuiting the free enterprise system,” he said after reading a note from the owners of the Centennial Plaza.
Commissioner Shaun Musil said he is against the proposal because the ownership should at least be paying for a portion of the improvements.
“(DP Management) is taking a loan out for $3.1 million, and you will be rebated for every dime of that (through the CID),” Musil said. “That’s where I struggle to understand how this should work out. There are smaller businesses in town where our current policy doesn’t allow them to expand. If we’re not doing it for them, then why should we do it for these guys?”
Under current regulations, a CID can only be attained by businesses operating on at least 50,000 square feet, have at least $10 million in sales and at least 25 employees.
Alan Leiker, owner of G&L Tire, an outlot tenant at the mall, said he was “on the fence.”
“I want to see some improvements done at the mall. There are a lot of things on the property that are lacking that should have been taken care of that normal landlords do if you are renting from them,” he said.
Leiker also suggested that a stipulation be put into place so that all of the contract work goes to local businesses to ensure the money stays in Hays.
Other concerns have been brought up regarding the exodus of customers and businesses from the Hays Mall if the CID passes due to the increased sales tax. But, Ellis County Coalition Coalition for Economic Development Executive Director Aaron White said that’s already happening due to the poor condition.
“We’ve seen a slip in sales tax revenue generation,” White said. “I’ve talked with retailers both in and outside of the mall, both large and small, on a regular basis and all of them are expressing concerns over the reduced sales tax.”
“A renovated facility that is ready for new spaces and developers will help bring those shoppers back,” he added.
The proposed CID would implement an additional 1 percent sales tax at all stores on the mall property in order to fund improvements. Renovations include enhancements to the interior, entrances, parking lot and landscaping. Developers also plan on demolishing the old Montana Mike’s building and ATM facility in order to make room for new outlying lots. Additional details that were recently released include a hotel on the facility.
“The CID is really a win, win, win with the city, Hays Mall and the public.” Gough said. “The mall is important to Hays and realizing the full potential of the mall benefits everyone.”
Commissioners are expected to make a decision on the issue at their Nov. 6 regular meeting.
Click HERE for more on CIDs from the Ellis County Coalition for Economic Development.