By ALICIA FEYERHERM
Tiger Media Network
The Hays City Commission approved two incentives for the 24/7 travel plaza during Thursday’s meeting. A full-service travel plaza with fuel, EV charging, dining, a dog park and RV campsites is planned for construction off Interstate 70 Exit 157, and the developer requested Tax Increment Financing (TIF) and Community Improvement District (CID) incentives.
Assistant City Manager Jarrod Kuckelman explained the mechanics of a TIF. The incentive captures incremental gains in property taxes within the TIF district. TIF revenues are captured for 20 years to go towards eligible infrastructure costs such as land, site preparation, utilities, streets and sidewalks.
The revenues are pay-as-you-go, so the developer would pay the costs up front and then receive reimbursement as the development is built out.
“So if there is no project, or is no construction, that means there is no incentive,” Kuckelman said.
Kuckelman said the project is estimated to bring a net benefit of $28 million to the city through 25 years and create 14 new jobs. The TIF revenues are estimated at $4.5 million.
Next, Kuckleman explained CIDs. This incentive would be an additional sales tax applied only to that area.
“Basically, it’s something that the land owner or the developer will choose to have imposed on their business to help reimburse for those eligible costs,” Kuckelman said. “The city will keep its own sales tax revenues.”
The developer is seeking a 2 percent CID for 22 years. CID revenues can be used for a variety of expenses, including vertical construction, land costs and engineering and architecture fees. It is estimated the CID would generate $2 million during the 22 years. The total project costs are estimated at $11.8 million, with $6,675,825 million being CID-eligible expenses.
Commissioner David Vilaysing said in some communities, retailers receiving CID incentives are required to post at the register or on the door that there is an additional sales tax. He would like the commission to look into that or find other ways to increase transparency with citizens so they are not surprised when they walk away from the register.
A public hearing is required for both incentives.
Citizen David Koshiol spoke during the hearing.
“The question is straightforward: Would this project happen without these incentives?’ ” Koshiol said. “Because if it would, we are not creating growth, we’re just giving up future revenue and making the deal better for the developer.”
The commission adopted both ordinances with a 4-0 vote.
“I’m excited for you guys to continue to invest in our community,” Commissioner Shaun Musil said.
During the meeting, the commission also accepted the 2025 audit results presented by Adams Brown.
The next Hays City Commission meeting will be at 4 p.m. April 23 at City Hall.
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