By CRISTINA JANNEY
Hays Post
The Hays USD 489 Board of Education has chosen to take no action on a tax incentive district for a proposed Hays hotel, ostensibly allowing the project to go forward.
The school district and county have until March 12 to pass resolutions in opposition of a tax incremental financing district for the $19.3 million Hilton Garden Inn that is set to be built west of Walmart. However, neither entity has expressed plans to do so.
The school board heard more on the project at its meeting Monday and asked questions, but opposition was voiced.
The district is a public financing mechanism. A TIF figures the difference between the original value of the land and new value of the developed property. The taxing entities still collect the taxes on the original value, but the taxes on the increased value go back to the developer to use on financing and infrastructure improvements, such as water, sewer, roads and parking. The TIF would be in effect for 20 years.
The school district would see a partial increase in the funds it receives on the new development under the TIF district. The developers would still have to pay the general fund school mill level of 20 mills and the Hays district’s capital outlay fund of 8 mills on the improvements.
The project would mean an additional $15,000 per year for schools. However, the majority of that would be for the general fund school mill levy, which goes back to the state to be redistributed.
The district would not receive an increase in property tax for its supplemental levy of 14.92 mills or its .646 mill declining enrollment levy. However, there is only one more year left on the declining enrollment levy, and the first phase of the hotel project might not be completed by the time that levy expires.
At the meeting, board member Greg Schwartz asked Jacob Wood, assistant city manager, if the TIF would include bond financing.
He said if a school bond passed, the hotel improvements would be exempt for 20 years under the TIF district.
Wood said the district could further benefit as infrastructure improvements associated with the project open up new areas to development.
School board member Paul Adams asked Wood about employment at the hotel and if he thought the project might bring any new families to the school district.
Developers estimate the hotel will employ 80 to 90 people, with a portion of those part-time. Wood said it is hard to tell how many people might move to Hays because of the project. He said the hotel will likely bring management in from outside of Hays, but many of the part-time workers will likely be from the area.
Schwartz asked why the city was supporting the hotel, which includes a convention center, at this time.
Wood said the city has sought a convention center for some time, but all the proposals included the city being part owner in the project, which the city did not want to do.
Economic research indicates convention centers bring in $190 in revenue per night per attendee to communities. That revenue generates sales tax for the city and helps support jobs in the community, said Aaron White, Ellis County Coalition for Economic Development executive director, who was present at the meeting.
The developer is scheduled to file a final project plan with the city clerk today for the TIF. It is also scheduled to file its community improvement district petition with city clerk today. The city has a work session on the TIF project plan and CID set for Thursday, March 15.
In other business: the board:
• Set a long-range facilities planning meeting for 6:30 p.m., Monday, March 5, at the Rockwell Administration Center.
• Heard a report on a bid for concrete for the Hays High School parking lot. Staff has recommended a low bid from Brian’s Concrete of Hays for $96,900.
• Approved two grant applications for Early Childhood Connections. ECC is requesting six more slots at its infant to 18 months program at Munjor and three more slots in its childcare program.
• Received a recommendation on building level administration contract renewals. Lincoln Elementary School Principal Elaine Rohleder has announced her retirement.