By BECKY KISER
Hays Post

The investment group, Hays Extended Stay Hotel Partners LP based in Liberty, Missouri, is asking for two Community Improvement Districts (CIDs) from the city of Hays to benefit a planned new development project north of I-70.

The group has purchased a parcel of property in the vicinity of Home Depot with the intent of constructing a Towneplace Suites hotel by Marriott immediately north of IHOP and Hampton Inn.

Two separate CID petitions have been submitted, according to Assistant City Manager Jacob Wood.

The first request seeks to impose a 1% CID sales tax on the hotel property only. A second petition seeks to impose an additional 1% CID sales tax on the hotel property and the JT Travel Plaza property which is under construction. The developer of  the convenience store project is not asking for any incentives and will not benefit from any incentives requested.

Proceeds from both CIDs will go to reimburse Hays Extended Stay Hotel Partners LP for the $9.6 million estimated costs associated with construction of the hotel.

Wood said Hays Extended Stay Hotel Partners LP has already submitted the necessary paperwork to the Ellis County Economic Development Coalition including petitions to create the two CIDs, an application for economic development incentives, a cost benefit analysis and the required application fee. A term sheet will be reviewed by the city commission as required by the city’s economic development policy.

If approved, the total sales tax at the Travel Plaza would be 10.5%, and the total sales tax at the hotel would be 16.5%.

Each CID district would impose a 1% tax for 22 years. According to city of Hays Finance Director Kim Rupp, it’s estimated the CID districts could generate $2.1 million in revenues.

Commissioners will review the request during their Thu., Oct. 20 work session. The entire agenda may be seen here.