{"id":96041,"date":"2026-03-27T11:23:29","date_gmt":"2026-03-27T16:23:29","guid":{"rendered":"https:\/\/tigermedianet.com\/?p=96041"},"modified":"2026-03-27T11:23:31","modified_gmt":"2026-03-27T16:23:31","slug":"city-commission-moves-forward-with-sales-tax-exemption-for-chick-fil-a-construction-costs","status":"publish","type":"post","link":"http:\/\/tigermedianet.com\/?p=96041","title":{"rendered":"City Commission moves forward with sales tax exemption for Chick-fil-A construction costs"},"content":{"rendered":"\n

By ALICIA FEYERHERM<\/strong><\/p>\n\n\n\n

Tiger Media Network<\/em><\/p>\n\n\n\n

The Hays City Commission adopted a resolution of intent to issue Industrial Revenue Bonds (IRBs) for Chick-fil-A during Thursday\u2019s meeting.<\/p>\n\n\n\n

The developer plans to construct a Chick-fil-A restaurant at 3404 Vine St. at the site of the former Rodeway Inn. Assistant City Manager Jarrod Kuckelman said the developer has requested an IRB sales tax exemption for qualifying construction materials. The estimated benefit for the developer is $66,875.<\/p>\n\n\n\n

\u201cThey\u2019ve been working on the process of developing in Hays for some time now and over that time, their anticipated construction costs have gone up,\u201d Kuckelman said.<\/p>\n\n\n\n

Kuckelman explained that the commission would issue only a resolution of intent. The bonds themselves would not be issued until the project has reached substantial completion.<\/p>\n\n\n\n

\u201cThe onus is on them (the developer),\u201d Mayor Mason Ruder said. \u201cThey have to perform or it doesn\u2019t work.\u201d<\/p>\n\n\n\n

The developer’s estimated investment is around $6.2 million, including land costs. <\/p>\n\n\n\n

With an estimated $5.5 million in annual sales, the City estimates $123,750 in sales tax revenue after completion.<\/p>\n\n\n\n

\u201c(The) $5.5 million comes from the developer, and they tend to use a low or less optimistic take on those to be as realistic as possible, so it could come in higher than that,\u201d Kuckelman said. <\/p>\n\n\n\n

Citizen David Koshiol commented on the proposal.<\/p>\n\n\n\n

\u201cOver just the last year, we\u2019ve already directed, redirected or forgoing roughly $400,000 annually in tax revenue on a handful of projects, and now we\u2019re considering adding onto that for a company like Chick-fil-A, a national chain with a proven model, strong margins and a track record of expanding into markets like ours without needing subsidies,\u201d Koshiol said.<\/p>\n\n\n\n

Koshiol said these incentives pick winners and losers.<\/p>\n\n\n\n

\u201cThat\u2019s not a free market,\u201d Koshiol said. \u201cIt’s selective advantage.\u201d<\/p>\n\n\n\n

Kuckelman noted the restaurant will create about 70 full-time and part-time jobs.<\/p>\n\n\n\n

\u201cI hope we continue to pull people into the community to fill those jobs and provide some competition,\u201d Ruder said. \u201cCompetition is going to drive up wages and drive people to fill those positions and that\u2019s what we need.\u201d<\/p>\n\n\n\n

Ruder said he has heard concerns about traffic flow in the area. He said there may be a back entrance by the Hobby Lobby parking lot, but that will be worked out between the developer and Hobby Lobby.<\/p>\n\n\n\n

\u201cI\u2019m assuming it\u2019s going to back up a lot of traffic along that area,\u201d Ruder said. \u201cThey (the developer) have asked to be involved in some kind of help with that by partnering with Public Works and PD, making sure things are moving appropriately so no one is getting backed up.\u201d<\/p>\n\n\n\n

Commissioner Sandy Jacobs said the roundabouts help with traffic flow in that area.<\/p>\n\n\n\n

\u201cI don\u2019t think this is anything new for Chick-fil-A and their willingness to work with everybody is stellar,\u201d Jacobs said. <\/p>\n\n\n\n

The resolution was adopted 5-0.<\/p>\n\n\n\n

\u201cI know they\u2019ve been looking at it for years, so for something to finally come up and be part of that renaissance of north Vine that\u2019s super exciting,\u201d Ruder said.<\/p>\n\n\n\n

Other items from the meeting included:<\/p>\n\n\n\n