🎥 Proposal for extended-stay hotel in Hays, more developments move forward

Ferdinand Niemann and Aaron White talk to city commissioners about plans for an extended-hotel in Hays. — Ferdinand Niemann and Aaron White talk to city commissioners about plans for building an extended-stay hotel in Hays.

By BECKY KISER
Hays Post

After canceling the past two meetings, the Hays City Commission was back in action Thursday night for the first time since Sept. 22. Commissioners faced a lengthy 11-item agenda, yet were able to get through the work session in less than 90 minutes.

Economic development proposals dominated the agenda and all moved forward to the Oct. 27 city meeting agenda for further consideration.

cid-requests-for-townplace-suites — The proposed Townplace Suites hotel would be built just north of I-70 and Vine Street.

Hays Extended Stay Hotel Partners LP is requesting two Community Improvement Districts (CIDs) for construction of a $9.64 million, 80-room Townplace Suites directly north of IHOP and Hampton Inn.

“They’re ready to start, pretty much next month, with construction,” said attorney Ferdinand Niemann of White Goss, the Kansas City firm representing the Liberty, Missouri-based developer. “Ferguson Hotel Group–a preferred builder for Marriott–is going to be the one that is actually going to do the construction. David Christie has the land now. He’s contributing the land as part of the development.”

“It’s nice to hear somebody that’s coming forward to the city with a CID that’s actually ready to start doing what they’re asking for,” Hays Mayor Shaun Musil commented, “so I appreciate that. I think the extended-stay hotel is a good idea for Hays.”

“We know the developer,” Commissioner Henry Schwaller pointed out. “This is the third project they’ve done–all of it successful. I would have no problem supporting it.” Ferguson Hotel Development also built the Hays Fairfield Inn, 377 Mopar Drive. (Corrected, 10:26 a.m., 10/21/16)

City commissioners agreed to move the CIDs request to next week's meeting for further discussion. — City commissioners agreed to move the CIDs request to next week’s meeting for further discussion.

“I like the transparency of the CID application,” said Commissioner Lance Jones, “just the process in general.”

All the commissioners commended Aaron White, Ellis Co. Coalition for Economic Development executive director, for his work on the project. “This is so much better than the last time we did this. I read through this several times trying to find questions to ask but if you read the packet and application, the answers are in there,” Jones added.

The hotel design does not include a large gathering space, something Musil said residents want.

“Because it’s extended-stay, it’s built more for the actual occupants,” Niemann said. “There’s a little convenience store and some common areas. Each room has its own kitchenette and living space–not really a convention hotel.”

A feasibility study provided to the developer determined there’s a need for an extended-stay hotel in Hays.

“They’re projecting about 68% occupancy the first year and then get up to about 76% occupancy within four years,” Niemann added.

Hays Finance Director Kim Rupp reviews the fiscal impact of the requested CIDs.

Hays Finance Director Kim Rupp explained how the requests would affect the city.

The first 1% CID would be for the property. The second 1% CID would encompass the hotel property and the new travel plaza already under construction immediately north of the proposed hotel. Proceeds from both CIDs would go to reimburse Hays Extended Stay Hotel Partners for costs associated with construction. The travel plaza developer, JT Travel Plaza, LLC, will not benefit from either incentive.

Each CID district would impose a 1% tax for 22 years. The developer is asking for reimbursement of $1.73 million of the CID eligible expenses.

It’s estimated the two CID districts could generate $2.1 million in revenues. The Marriott hotel expects to create 23 jobs. Analysis shows $939,019 in real estate taxes would be paid and slightly more than $8 million in city sales tax generated over the 22 years.

Commissioners asked for an estimate of the hotel transient guest tax that would be generated to be provided for the Oct. 27 commission meeting.

“There are two CIDs currently in place in Hays,” Rupp reminded the commissioners. “There is a 2% CID at the Holiday Inn Express, 4650 Roth, which started collections in late 2010 by the same developer submitting the petition for the extended stay hotel. There is also a 1% CID at Big Creek Crossing, 2918 Vine, which began in mid-2015.”

“The city’s economic development policy provides that these are a pay-as-you-go incentive, meaning the developer will pay for the cost of the project upfront and then can be reimbursed for eligible costs by the CID,” Rupp explained.

“Therefore, there is no monetary liability on the part of the city of Hays on a CID.”

This development (referred to in this summary as the “Retail Project”) is expected to consist of an approximately 50,000 square foot building to be used by a national retailer and another 23,000 square feet of retail space. — The retail development would consist of a 50,000 square foot building to be used by a national retailer and another 23,000 square feet of retail space.

Niemann pointed out David Christie is also involved in a separate second project to develop a 73,000 square foot retail space directly north of Home Depot which would require another 1% CID.

heart-of-american-industrial-park-second-addition-aerial — The Heart of America Industrial Park Second Addition development will require extension of 9th Street east to Commerce Parkway.

Commissioners agreed to move forward with that request as well as the continued development of the Heart of America Industrial Park on south Commerce Parkway in east Hays.

A benefit district would be established to fund the extension of 9th Street east to Commerce Parkway.