City commission approves bid for Chestnut Suites project

By ALICIA FEYERHERM

Tiger Media Network

During Thursday’s City Commission meeting, Assistant City Manager Jarrod Kuckelman presented about the Chestnut Suites project. 

Earlier this year the City received an application from Chestnut Suites to apply for $300,000 of Commercial Development Block Grant (CDBG) through the Commercial Rehabilitation Grant program. 

The developer plans to turn 1108 N. Main Street in Hays into 24-26 luxury AirBnB rental rooms. The rooms would be designed similar to traditional hotel rooms. 

“While this project is not a direct City project, CDBG guidelines require the City Commission to award the bid to the lowest responsive bidder,” Kuckelman said. 

Bids were solicited on December 12. One bid was received from Robben Construction for $484,500. That bid covers Phase One of construction, which includes some concrete and masonry work, roof and window repairs, and plumbing work. 

“Phase One is going to be the portion of the work that involves the grant funding, so while the overall project cost is much larger than this bid, the bid for Phase One is only for this select portion of the project,” he said  

This is the only time the City Commission has to be involved in the bid process.

Kuckelman reminded the commission that this project has no anticipated City costs. The developer is solely responsible for the construction costs. 

Mayor Sandy Jacobs said that because of the historic nature of the project, nothing can be done to the exterior for five years. The developer noted that the five-year clock starts once the project is complete which will be 12 to 18 months from now. 

“I just want to live long enough to see that rock wall come down up front,” Jacobs said. 

The motion to approve the bid from Robben Construction passed 4-0 with Commissioner Alaina Cunnigham absent from the meeting. 

Other items from the meeting included:

• Jami Breit was sworn in as the new City Clerk
• The Commission approved the City Manager to enter into a $754,916 contract with APAC to replace the Highway 40 sanitary sewer pump station

The next City Commission meeting will be at 4:00 p.m. on January 9 at City Hall.