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Walmart decision forces tabling of convention center plans

After years of planning, plans for a convention center in Hays has hit an unexpected hurdle after a key player changed its stance on a proposed new taxing district.

Site of proposed convention center
Site of proposed convention center

Aaron White, executive director of the Ellis County Coalition for Economic Development, said Thursday that Walmart has officially changed its stance on a new commercial improvement district from neutral to opposed. The CID was proposed to fund the bulk of the $8 million project, which would have been built on land just south of Holiday Inn Express and owned by a newly formed nonprofit organized by the coalition.

“Recently, Walmart reached out to the coalition to discuss the proposed CID district and members. Walmart has indicated that they will be changing their stance on district membership and will no longer remain neutral,” White said. “In light of this development, the convention center task force is recommending that the coalition seek other options or guidance from community leaders.”

The CID would impose a new 0.65 percent sales tax on businesses included in the district. Repayment of the bonds used to fund the project also would have required an percent increase in the city’s hotel-motel tax.

Walmart informed the city of its decision despite offering support for the project itself, White said. While the proposed CID includes many of the businesses in the retail area north of the interstate, Walmart is by far the largest generator of sales tax — generating approximately 70 percent of the sales tax in the proposed CID. Both the CID and the increase in the hotel-motel tax would require approval by the Hays City Commission.

The convention center project also involved Hays’ two post-secondary institutions. Fort Hays State University had agreed to operate the center as part of its hospitality management program, while North Central Kansas Technical College had plans to use the facility’s kitchen as part of a new culinary arts program.

A task force created by the coalition at the request of the Hays City Commission met Thursday to discuss potential next steps.

Jana Jordan of the Hays Convention and Visitors Bureau expressed her disappointment. She long has lobbied for a solution to the lack of adequate convention facilities in Hays.

“I am sorry to learn of the recent set-back for the Hays convention center project. I believe the center would be a wonderful asset for our community. The economic impact of having thousands of visitors in our community for several days attending meetings and conventions makes a great impact on sales tax collected in Hays,” she said. “It is for that reason I believe the ECCED convention task force will continue to oversee this project and, one day, our community will realize a new convention center.”

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