By NICK BUDD
Hays Post
Next week, Hays city commissioners will vote on a new CID policy that will require applicants to provide at least 25 percent of the capital for any projects.
The new legislation was prompted by the passage of a 1-cent sales tax hike at the Hays Mall in November. The developer, DP Management, has said it will not provide any extra funds for the project besides the revenue from the CID.
A similar ordinance is used in Salina, and other municipalities in Kansas have policies that require as much as 40 percent from an owner or developer. During the commission work session Tuesday night, Commissioner Kent Steward said he supports completely eliminating any tax incentives for businesses.
“I don’t do that in the sake of levity. I invite you to research tax abatements, and you will not find a scientific study that supports it,” said Steward, who is not seeking re-election in the upcoming spring elections.
Commissioner Shaun Musil supported the policy and said he would “have a hard time” voting in favor of another CID until the results from the tax increase at the Hays Mall are known. Vice Mayor Eber Phelps warned the policy could end up as a faulty, “one size fits all” approach.
“We might have to reconsider it, because it’ll be a totally different era, business or whatever the case may be,” Phelps said.
Commissioners will vote on changing the policy at next week’s regular meeting.