By BECKY KISER
Hays Post

Hays city commissioners agreed unanimously during their Thursday night work session to move forward with the next step in Hays Extended Stay Hotel Partners LP’s request for the creation of two Community Improvement Districts (CIDs) north of Interstate 70.

John Ferguson of Ferguson Hotel Development, LLC,  wants to build a $9.64 million 80-room extended stay motel, Town Place Suites, directly north of I-Hop and Hampton Inn near Home Depot.

One petition seeks to impose a 1% CID sales tax on the hotel property only. A second petition seeks an additional 1% CID sales tax on the hotel property and the JT Travel Plaza property. JT Travel Plaza opened for business Thursday morning.

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

Commissioners looked over a draft development agreement that has been reviewed by the city’s bond counsel and city attorney. “It’s really no different than what we did with Holiday Inn Express or ‘the bones’ of the mall,” said City Manager Toby Dougherty.

In addition to the standard language, Finance Director Kim Rupp explained city staff included another requirement.

“Even if the CID sales tax revenues from either of the proposed CIDs exceed expectations, the developer would not be reimbursed from the two CIDs combined for more than $1,733,318 plus the developer’s actual costs of interest on any financing arranged by them at a rate not to exceed 7% per annum,” Rupp read from the draft.

Both parties must accept the suggestions in the development agreement. A public hearing has been set for the next regular commission meeting, Tue., Nov. 22.

Commissioners will meet Tuesday evening rather than Thu., Nov. 24, which is the Thanksgiving holiday.