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New CID developments must have ‘skin in the game’ (VIDEO)

cid changeBy BECKY KISER
Hays Post

The city of Hays will change the CID portion of its Economic Development Policy and now require applicants to financially participate in the project in an amount that is at least 25 percent of the total project cost.

City commissioners Thursday night voted 4-1 to revise the Community Improvement Development policy.

The revision was prompted by the commission’s passage in November of a 1-cent sales tax hike on purchases at the Hays Mall. The developer, DP Management, will not provide any capital for the renovation project besides the revenue from the CID, an estimated $3 million.

“I still believe that any new development that comes to us must have an investment in it,” said Hays Mayor Henry Schwaller, “and the taxpayer–whether it’s the shopper or the taxpayer at large–is not paying 100 percent of the development.

“They’re (the developers) making money. They don’t need to make money twice.”

“Properly so, there is some concern with allowing people to tax their customers to paint their building and to replace the light bulbs. It’s not common practice in business to ask your customers to pay above and beyond what they’re paying in rent and the price of their goods for maintenance of the building 40 years after it’s built,” Schwaller said.

Vice-Mayor Eber Phelps said he thinks there is some misunderstanding among residents about CIDs.

“The CID is not something the city of Hays came up with,” he explained. “It’s enabling legislation by the state of Kansas that is being used as a (economic development) tool to come before the cities which can add any caveats they want.”

Outgoing commissioner Kent Steward maintained his ongoing opposition to the CID program and voted against the change.

“I think there is good motivation for what you’re proposing but I think we should do away with them. It’s like ‘putting lipstick on a pig.’ They don’t accomplish what people delude themselves to think they accomplish,” Steward said.

CIDs in Hays can be used for expenses greater than $250,000 in order to promote economic development or tourism within the city.

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