By BECKY KISER
Hays Post
A proposed amendment to the Hays Neighborhood Revitalization Plan (NRP) would increase considerably the size of the area–from 209 acres in the downtown area to 1,628 acres primarily north and east of downtown. Individual properties in the NRP would increase to 4,126.
The city hopes the area’s expansion would encourage more redevelopment in older neighborhoods.
According to Greg Sund, Hays public works director, the proposal includes properties that reflect the build-out of Hays as of 1965. “It would establish a standard of 50-year old properties in the NRP giving the city a bellwether for amending the area from time to time in the future,” Sund wrote in his memo to city commissioners.
More than 45 properties have benefited from the NRP since its inception in 2002. Property owners receive a rebate on their property taxes which go up due to increased property value. The rebate is not based on the amount invested in a project.
City staff is recommending residential projects be rebated the same as commercial projects which is a 95 percent rebate of increased property value each year for 10 years. The minimum investment for each property type would also be increased, from $5,000 for Residential to $25,000 and from $15,000 for Commercial to $50,000.
At their April 13 meeting, city commissioners voted unanimously to schedule a public hearing during their April 27 meeting to amend the NRP.
Commissioner Henry Schwaller favors keeping commercial tax rebates bigger than residential rebates.
“We have more commercial vacancies than we have commercial tenants,” Schwaller said, “and the threshold for commercial rehab and redevelopment is much higher than residential. But when it happens, then you bring something on the (Ellis county) tax rolls that’s worth a lot more.
“It creates long-lasting jobs because now you have new businesses and offices, retail and restaurants occupying otherwise vacant structures.”
Schwaller described the current Hays housing marketing “a little soft right now” but added “people are always buying houses to flip them. If someone sees a house and they think they can make a profit on it, whether they’re going to live in it or not, they’re going to do it.
“I really believe the focus should be on commercial,” Schwaller said. “Most of the commercial properties in this area have been unchanged since they were built in the late ’50s and early ’60s. I’d like to see us incentivize that change.”
Mayor Shaun Musil agreed.
“We have a lot of houses being torn down, being rebuilt, but we don’t have a lot of the commercial (activity). I would probably lean towards the commercial.”
Commissioner Lance Jones favors equal rebates.
“If you put $100,000 into your house, your house may only go up $50,000 in assessed value,” Jones said. “There are certain things you do on the inside of your house that are not going to raise your assessed value. That’s why I would keep it the same 95 percent rebate for both residential and commercial.”
“But again, it’s only what the market will bear,” countered Schwaller. “If you’re making improvements to the home that don’t affect the assessed value, we’re not incentivizing you. You won’t get the incentive, so 95 percent is of no help.”
“Correct,” Jones nodded in agreement.
“There’s a hard cap on what a residential home is worth per square foot, so it doesn’t matter whether the incentive is 95 percent or 65 percent. If I paint the house green and do all this great stuff that nobody’s going to want, then it’s not going to affect the assessed value,” countered Schwaller. “That’s an argument for a future meeting, but point taken,” Schwaller said to Jones.
Both the Ellis County commission and the Hays USD 489 school board would also have to approve resolutions supporting the amended NRP.
Commissioner Sandy Jacobs was absent from the meeting.