By BECKY KISER
Hays Post
Public hearings will be held Tue., Nov. 22, during the Hays City Commission meeting to consider creating two Community Improvement Districts (CIDs) for a proposed extended stay hotel just north of I-70 in Hays.
City commissioners voted unanimously Thu. night in favor of moving the proposal forward. Hays Extended Stay Hotel Partners LC wants to build a $9.64 million, 80-room Town Place Suites hotel south of the JT Travel Plaza currently under construction near Home Depot.
Hays Finance Director Kim Rupp explained how the CIDs would impact 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. 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 hotel 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 sales tax revenues over the 22 year period. The Marriott hotel expects to create 23 jobs. Analysis shows $939,019 in real estate taxes would be paid, $6.63 million in city sales tax generated and $2.9 million transient guest tax collected over the 22 years.
Attorney Ferdinand Niemann of White Goss, the Kansas City firm representing the Liberty, Missouri-based developer, told commissioners last week the project is “ready to start, pretty much next month, with construction.”
“People have been asking us if we need another hotel,” said Mayor Shaun Musil. “Hays almost lost the Special Olympics state basketball tourney last year because of hotel space. From the figures you showed us, it looks like we can use it.”
The proposal was approved by the Ellis County Coalition for Economic Development before it came to the commission.
“I like the breakdown at the beginning of the jobs created and a lot of complete information as far as projected sales tax revenues—paints a pretty nice picture, I think,” said Commissioner Eber Phelps. Vice-Mayor James Meier commended the Coalition and Executive Director Aaron White for the “transparency and upfront numbers…I’m looking forward to another hotel in town,” he added.
All materials have been reviewed by the city’s bond counsel, Gina Riekhof, Gilmore & Bell, P.C. and found to meet the requirements of Kansas law and the city’s Economic Development Policy.