By ALICIA FEYERHERM
Tiger Media Network
The Hays City Commission approved the scheduling of a public hearing for the establishment of a Community Improvement District (CID) as well as approved an Intent to Issue Industrial Revenue Bonds (IRB) in connection with a project to expand Cervs.
Cervs currently operates six convenience stores and Phillips 66 fuel stations, including four locations in Hays. Cervs is now seeking to construct a new store and gas station facility along with site improvements.
The current facility, located at 37th and Vine, would be rebuilt with more amenities and the location of the building and gas pumps would shift.
“My understanding is that the idea behind these changes in the site layout is that it will facilitate a greater ease of vehicular and truck traffic in and out of the location,” Management Analyst Jarod Kuckelman said.
The first incentive being requested is the establishment of a Community Improvement District (CID).
CID can be used by property owners to cover things like vertical construction, parking, land costs, engineering and architecture fees. The maximum CID Is 2% for 22 years.
“Basically, it’s something that the landowner or developer chooses to have imposed on themselves and their business to help reimburse for the items I just mentioned,” Kuckelman said.
Therefore, the requested 1.5% CID would be added to sales tax at the Cervs location, but would not impact businesses outside of the Community Improvement District.
The estimated project cost is $4.7 million with $3.2 million of those costs CID-eligible. The CID is expected to generate $895,000 over 22 years.
The developer is also seeking Industrial Revenue Bonds.
These IRBs would exempt the developer from sales tax on construction materials as well as furniture, fixtures, and equipment related to the remodeling project.
IRBs do not require taxpayer commitment, nor do they impact the City’s debt limit or rating. The developer is solely responsible for payment obligations.
City Commissioner Alaina Cunningham asked if Cervs has used CIDs or IRBs for previous remodeling projects. Kuckelman said he was not aware of any uses of the programs prior to this.
“It is an entrance to our community and I think it’s really going to be exciting to have it new in all that area,” Mayor Sandy Jacobs said. “Not that it isn’t nice right now, but it’ll take it up one more step.”
Commissioner Reece Barrick said the improved safety is also very important for the area for the vehicles entering and exiting.
The Commission approved the Industrial Revenue Bonds 5-0. The Commission also unanimously approved the petition to set a Public Hearing for the Community Improvement District.
The hearing will be on November 14. After the hearing, the Commission will vote to approve an ordinance establishing the CID. If approved, the CID would go into effect on April 1, 2025.
Other action items included:
- Approval of issuance of General Obligation Temporary Notes to temporarily finance a portion of Advanced Metering Infrastructure.
- Approval to authorize a new public building project which will be a new police station.
The next City Commission meeting will be at 4:00 p.m. on October 24 at City Hall.
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