A short agenda for tomorrow’s meeting of the Hays City Commission.
Items for approval include a lengthy list of cereal malt beverage 2017 license renewal applications and the appointment of Hays resident Brandon Nimz for a three year term to the Sister Cities Advisory Board.
The Public Works Department will present a minor amendment to city code changing the Emergency Snow Routes map to reflect the relocation of Ellis County Emergency Medical Services to 1105 E. 22nd.
A presentation by City Manager Toby Dougherty is also scheduled.
The complete Dec. 8, 2016, agenda may be seen here. The meeting starts at 6:30 p.m. Thursday in Hays City Hall, 1507 Main.
Union Pacific equipment on the rails Tuesday morning for replacing bad railroad ties.
CITY OF HAYS
The Union Pacific Railroad will have two tie crews coming in to replace ties on the railroad.
One crew began work Fri., Dec. 3, at the Ash Street Railroad Crossing and continue east and on Monday December 5th, 2016 will start at 150th Street (near Yocemento) and work east to Ash Street. This job is planned to be completed by December 8th, 2016.
They will have another crew working at the train crossings at Commerce Parkway, Main Street, Elm Street and Ash Street beginning Friday, Dec. 9.
New ties are loaded on UP equipment awaiting placement.
While they are working train traffic will be shut down. This could lead to 5-10 minute delays at the crossings. They will have flaggers at the crossing when it is necessary to temporarily shut down traffic.
Train traffic and signals will operate from the time they end work each day until they start on the next.
Old worn-out ties are placed in piles along the north side of the railroad tracks.A spike sticks up from a splintered and broken railroad tie near the Allen Street crossing in Hays.
It may have been the shortest Hays City Commission work session ever.
At 6:30 p.m. Thursday night, Mayor Shaun Musil gaveled open the meeting. Three minutes later, Musil brought down the gavel again to end the work session.
The first discussion item had already been resolved. Three inoperable vehicles parked on property in the 400 block of E. 7th Street since September had already been removed, negating the city’s plan for abatement of the pickup, SUV and sedan.
An amendment to the Emergency Snow Routes ordinance was presented by Greg Sund, Director of Public Works, who called it a “small change.”
“When Ellis County Emergency Medical Services (EMS) was located at the 1009 Cody, the streets surrounding EMS were designated emergency snow routes. Now that EMS has moved into the new Ellis County Rural Fire/EMS Building at 1105 E. 22nd, it is advisable to amend the emergency snow routes to reflect the change,” Sund explained.
Commissioners agreed to move the amendment request for action at the next regular meeting, Thu., Dec. 8.
The location of Ellis County Emergency Services changed late last year in Hays and now the city will update the Emergency Snow Routes map to reflect that move.
“It’s something we do every couple of years, look at the emergency snow routes to see if they’re where they need to be,” said Assistant Hays City Manager Jacob Woods.
“The ambulances are in a different place so we’re updating the emergency snow routes. The streets around the emergency services facility are now part of the emergency snow routes, which they weren’t before,” Woods said, calling it “a minor change. We took away a couple of streets and added a couple of streets.”
The move wasn’t far for Emergency Medical Services–a little more than a block from 1009 Cody Ave. to the new building at 1105 E. 22nd, where the ambulances are now housed.
Ellis County Rural Fire Department Company 5 had further to go with its trucks, from 1208 Cedar St. to the more central location.
“Anyone who lives along an Emergency Snow Route can’t park their vehicles on the street if there’s a snow storm. Those are the routes that we clear first so emergency vehicles, police vehicles, can get anywhere in the community,” Woods explained.
City commissioners will review the map changes during their work session tomorrow evening.
The new shopping center will be built on the east side of the CID directly north of Home Depot.
By BECKY KISER Hays Post
Despite a late request for an addition to the development agreement, Hays city commissioners Tuesday night approved a Community Improvement District (CID) for a new retail development to be built directly north of Home Depot.
A one percent CID sales tax will be imposed for 22 years for construction of a 73,000 square foot shopping center, anchored by a national retailer.
If certificates of occupancy for the 73,000 square feet of retail space are not issued within 36 months of Tuesday’s approval of the CID, it will be dissolved. “The clock is now ticking on the occupancy requirements,” noted Finance Director Kim Rupp.
Commissioners said they understand why the developer’s bank wants reassurance the city will “reasonably consider amendments to the agreement requested by the developer as a result of economic and/or market conditions.”
Both Mayor Shaun Musil and Vice-Mayor James Meier said they had contacted two local bankers who both said “they would have asked for the same thing.”
Ferdinand Niemann, attorney for developer Hays Investors
“It basically gives the bankers some comfort,” said Ferdinand Niemann, an attorney for Hays Investors, LLC. “Let’s say we’re two weeks behind and we have delivered 72,000 square feet. I think it’s pretty likely the city would say ‘You’re close enough–72,000 out of the 73,000 square feet requirement, or, you need two more weeks.’
“The Section 20 does not bind the city to anything,” he stressed.
Commissioner Lance Jones didn’t like the request for a new clause in the agreement coming at the last minute, but also said “I don’t think there’s anything ‘fishy’ there.”
“It’s nothing to keep us from passing this project” Jones added. “If they build it, the city’s going to come out financially good and make money. If they don’t build it, we’re not really out anything.”
Vice-Mayor Meier stressed the importance of sales tax receipts to the city of Hays.
“We’re the only city in the state of Kansas that 100% funds its General Fund with sales tax revenue,” Meier pointed out.
Sales tax revenues were up for this quarter-to-date, according to Hays Finance Director Kim Rupp.
During Tuesday’s presentation of the October financial statement, Rupp reported an increase in quarter to date (QTD) sales tax collections of 1.43%, the the first increase on the QTD report in seven months.
“If we don’t get our sales tax revenues increasing once again on a consistent basis, at some point we are going to have to see some type of property tax in the mix to fund the General Fund,” Meier warned.
The city’s mill levy has remained at 25 mills the past ten years, according to City Manager Toby Dougherty.
“We’ve been able to do that because of the sales tax,” Meier explained. “This is good for the taxpayer….we’ve been able to have city services paid for by those outside of the community, who rightfully so, should be paying for some of those because they drive on our streets and they play in our parks.”
“Keep an eye on Hays,” Musil said with a smile. “We’re going to have lot (of popular shopping opportunities) real soon.”
Commissioner Henry Schwaller was absent from the meeting.
Hays city commissioners approved the extended-stay hotel project Tuesday.
By BECKY KISER Hays Post
Following a public hearing with no comments from the audience, Hays city commissioners voted unanimously Tuesday night to approve two Community Improvement Districts (CIDs) for a new 80-room extended stay hotel to be built north of I-70.
Development agreements and ordinances have been approved for a 1% CID sales tax on the Marriott hotel property, directly north of I-Hop and Hampton Inn near Home Depot. An additional 1% CID sales tax will be placed on the hotel property and the JT Travel Plaza which just opened last week.
Attorney Ferdinand Niemann of White Goss, the Kansas City firm representing the Liberty, Missouri-based developer, Hays Extended Stay Hotel Partners, said the $9.64 million project is ready to go.
“They’re going to close on this Monday (Nov. 21) since this passed tonight. I wouldn’t be surprised if you see dirt being moved later this month,” Niemann said.
“Another positive thing is, they’ve actually reached out to local contractors to do a lot of the work, taking bids,” added Mayor Shaun Musil. “That’s great. If it goes back into our community, that’s a plus for everyone.”
Musil was also pleased with how the hotel project came together.
“I think this is needed in our community. With our new development policy, this is what we got out of that. I think it’s pretty straight forward.”
Ground may be broken later this month for the new hotel project north of I-70.
Both CIDs will be in effect for 22 years, according to city Finance Director Kim Rupp. “The total sales tax at the travel plaza would be 10.5%, and the total sales tax at the hotel would be 16.5%,” Rupp told commissioners.
“Even if the CID sales tax revenues from either of the CIDs exceed expectations, the developer would not be reimbursed from the two CIDs combined for more than $1.73 million plus the developer’s actual costs of interest on any financing arranged by them at a rate not to exceed 7% per annum,” Rupp added.
Commissioner Henry Schwaller was absent from the meeting.
Hays city commissioners discuss the requested addition to a draft development agreement with Hays Investors LLC during the Nov. 17 work session.
By BECKY KISER Hays Post
The Hays City Commission will meet tonight, Tue., Nov. 23, rather than Thursday because of the Thanksgiving holiday.
Three public hearings are on the agenda.
Commissioners will conduct two hearings for Community Improvement District (CID) requests from Hays Extended Stay Hotel Partners LP which seeks two 1% sales tax CIDs related to construction of a Marriott Town Place Suites west of Home Depot.
The commission will also consider approving ordinances and development agreements for the project.
The third public hearing is for a 1% CID sales tax request from Hays Investors for a proposed 73,000 square feet retail development directly north of Home Depot. Again, if commissioners vote to proceed with the request, they will next consider the Development Agreement and ordinance adoption.
Other agenda items are the issuance, payment, and security of $5.9 million in General Obligation Refunding Bonds. City Finance Director Kim Rupp expects the refunding will lower the debt service on the bonds approximately $58,000 per year for the remaining term.
Despite a record breaking high of 84 degrees in Hays Wednesday, Hays Director of Parks Jeff Boyle was looking toward the weekend’s weather forecast calling for two consecutive nights of lows around 20 degrees.
“Every year when the cold weather starts hitting, we will be shutting down our restrooms and drinking fountains in our area parks to keep everything from freezing up and breaking,” Boyle said. “The restrooms are not heated–it’s pretty costly to heat all those.”
“We have to drain the water out of the system, disconnect all the P-traps and do all kinds of interior plumbing to get the water out of the system to keep the pipes from cracking.”
Parks Department employees started the work Tuesday. Each year the shutoff date varies based on fall temperatures.
“We’ve had a phenomenal fall this year and there’s been no need to close those restrooms down. Two years ago though, we were closed down by mid-October,” Boyle recalled.
“We watch the 10-day weather forecast, knowing it takes us four to five days to get our work done. It just depends on Mother Nature.”
The Hays Area Planning Commission will meet Mon., Nov. 21, to consider approval of a preliminary plat of Creekside Estates, the former Arbor Valley Estates Addition located west of Augusta Lane between West 26th and 27th Streets.
The area is zoned for residential development. Click here for more information about the plat application.
The meeting begins at 6:30 p.m. Monday in Hays City Hall, 1507 Main. The complete agenda follows.
HAYS AREA PLANNING COMMISSION MEETING AGENDA
CITY COMMISSION CHAMBERS
1507 MAIN, HAYS, KS
NOVEMBER 21, 2016
6:30 PM
1. CALL TO ORDER BY CHAIRMAN.
2. CONSENT AGENDA.
A. Minutes of the meeting of August 15, 2016
Action: Consider approving the minutes of the August 15, 2016 meeting.
3. PUBLIC HEARING ITEMS. None
4. NON-PUBLIC HEARING ITEMS.
A. Preliminary plat for Creekside Estates (Former Arbor Valley Estates Addition located
west of Augusta Lane between West 26th and 27th Streets)
Action: Consider approval of the Creekside Estates preliminary plat (Former Arbor
Valley Estates Addition located west of Augusta Lane between West 26th and 27th
Streets)
5. OFF AGENDA ITEMS/COMMUNICATIONS.
A. City Commission action and planning and development updates on Planning
Commission related issues
6. ADJOURMENT.
Hays city commissioners discuss the requested addition to a draft development agreement with Hays Investors LLC.
By BECKY KISER Hays Post
One item was added this week to the proposed development agreement for a new retail development north of Interstate 70. Hays city commissioners saw it for the first time during their work session Thursday night.
A public hearing date for the project has already been set for Tue., Nov. 22.
Dave Christie of Hays Investors LLC has submitted a petition for the creation of a 1% Community Improvement District (CID) sales tax to construct approximately 73,000 square feet of retail space directly north of Home Depot. The development is expected to consist of a 50,000 square foot building to be used by a national retailer and another 23,000 square feet of retail space.
Finance Director Kim Rupp told commissioners the draft development agreement has been reviewed by the city’s bond counsel and the city attorney.
He explained the city added a stipulation in the event certificates of occupancy for 73,000 square feet of retail space are not issued within 36 months of approval of the CID, then the CID will be dissolved. Additionally, as long as the CID is in existence, the developer will not request, and the city will not approve, any additional economic development incentives on the retail project property.
Thursday night’s Section 20 addition from the developer addressed market and economic conditions:
Section 20
“The City hereby acknowledges and agrees that the development of the Project, including the Development schedule, may be adversely impacted by changing economic and market factors. Accordingly, the City hereby agrees to reasonably consider amendments to this Agreement requested by the Developer as a result of economic and/or market conditions.”
City Manager Toby Dougherty said his office received the add-on late Wednesday.
“Right now, they’re still saying we’re going to occupy 73,000 square feet within three years. But, what they’re saying here is, we would like to be able to ask you to modify the agreement,” explained Dougherty. “It has nothing to do with the 22 years the CID would be in place.”
“We think they’ve probably been told by a bank that the covenants require them to make a good faith effort to adjust the size under certain economic conditions,” City Attorney John Bird interjected. “If a potential retailer comes in and says we can’t make it work at 73,000 square feet but we can at 50,000 square feet…They’re not getting something automatically from us, and you’ll have the ability to negotiate.”
Aaron White, Ellis Co. Coalition for Economic Development Director
Aaron White, director of the Ellis County Coalition for Economic Development, told commissioners what was “expressed to us by their attorney.”
“Should their contracts come through and the clients are saying ‘our square footage formula (for the Hays market) dictates the facility would be 65,000 square feet instead of 73,000,’ the bank was concerned that the city could do away with the CID point-blank. Or, the other example given was if the facility is 80% complete at the 36 month deadline and they have contracts in hand to fill all the space that’s being built. Is there an opportunity for a six-month extension? So the language was designed to allow some flexibility based on the client needs or market change.”
Commissioner Lance Jones said he didn’t like it and wanted more time to think about it. “It’s gonna come back on a future commission and put them in a bind. So if we can move this forward without this Section 20 language, I’d appreciate it.”
Commissioner Henry Schwaller agreed. “He is a developer. We didn’t pick the 73,000 square feet–he did. Now, if he’s having cold feet because Retailer X may want 3- or 10,000 feet less, that’s not our fault,” Schwaller said.
“Home Depot brought a lot of sales tax to Hays,” countered Mayor Shaun Musil. “If he (Christie) brings potentially what he’s saying–it’s a big name company and I think it would be a big draw for Hays–for us to slap him around and say no, we’re not interested, I think would be a big mistake.”
White confirmed Christie has a letter of intent from the national retailer but no contract at this time.
Commissioners ultimately agreed to include the Section 20 add-on in the draft development agreement for next week’s agenda.
“It’s still possible for you next week to say ‘No, I won’t approve that as drafted. I would approve it the way we had it originally,'” Bird assured the commission, “and then let them make their decision.”
“The feedback we got from their counsel was that the bank would pull their financing without some sort of statement saying there is an option to request a change,” White added. The city has requested a copy of the bank’s written intentions.
The commission meeting is Tues., Nov. 22, rather than Thursday because of the Thanksgiving holiday.
Hays city commissioners agreed unanimously during their Thursday night work session to move forward with the next step in Hays Extended Stay Hotel Partners LP’s request for the creation of two Community Improvement Districts (CIDs) north of Interstate 70.
John Ferguson of Ferguson Hotel Development, LLC, wants to build a $9.64 million 80-room extended stay motel, Town Place Suites, directly north of I-Hop and Hampton Inn near Home Depot.
One petition seeks to impose a 1% CID sales tax on the hotel property only. A second petition seeks an additional 1% CID sales tax on the hotel property and the JT Travel Plaza property. JT Travel Plaza opened for business Thursday morning.
If approved, the total sales tax at the Travel Plaza would be 10.5%. The total sales tax at the motel would be 16.5%.
Commissioners looked over a draft development agreement that has been reviewed by the city’s bond counsel and city attorney. “It’s really no different than what we did with Holiday Inn Express or ‘the bones’ of the mall,” said City Manager Toby Dougherty.
In addition to the standard language, Finance Director Kim Rupp explained city staff included another requirement.
“Even if the CID sales tax revenues from either of the proposed CIDs exceed expectations, the developer would not be reimbursed from the two CIDs combined for more than $1,733,318 plus the developer’s actual costs of interest on any financing arranged by them at a rate not to exceed 7% per annum,” Rupp read from the draft.
Both parties must accept the suggestions in the development agreement. A public hearing has been set for the next regular commission meeting, Tue., Nov. 22.
Commissioners will meet Tuesday evening rather than Thu., Nov. 24, which is the Thanksgiving holiday.
By BECKY KISER
There’s a lot happening in Hays during the holidays.
By BECKY KISER
