{"id":92163,"date":"2025-11-14T09:36:06","date_gmt":"2025-11-14T15:36:06","guid":{"rendered":"https:\/\/tigermedianet.com\/?p=92163"},"modified":"2025-11-14T09:36:24","modified_gmt":"2025-11-14T15:36:24","slug":"city-commission-moves-forward-lincoln-school-rhid-and-two-industrial-revenue-bonds","status":"publish","type":"post","link":"https:\/\/tigermedianet.com\/?p=92163","title":{"rendered":"City Commission moves forward Lincoln School RHID and two industrial revenue bonds"},"content":{"rendered":"\n

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

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

On Thursday, the Hays City Commission approved a resolution to start the process for the Lincoln School Reinvestment Housing Incentive District (RHID), as well as two resolutions evidencing intent to issue industrial revenue bonds (IRBs).<\/p>\n\n\n\n

The commission started with the Lincoln School RHID. Developer Mike Graham purchased the Lincoln Elementary School property after it was closed in May as part of the USD 489 Bond projects. Graham plans to convert the school building into one and two-bedroom apartments and then construct seven 4-plex buildings on the open space. Graham is seeking an RHID to help offset costs.<\/p>\n\n\n\n

Assistant City Manager Jarrod Kuckelman reminded the commission of the basics of RHIDs. <\/p>\n\n\n\n

RHIDs are established by cities or counties and require a housing needs analysis. The RHID then captures 100% of the incremental real property taxes (less the state and school district mills) and returns those gains to the developer for up to 25 years. The property tax increment can be used to reimburse costs such as site preparation, streets, water mains, storm sewers and gas\/electrical services. At the expiration of the RHID, the full valuation is restored to all taxing jurisdictions. <\/p>\n\n\n\n

\u201cThis RHID will be a bit more unique than some of the previous ones that Hays has done in that it does include an existing building along with some new construction,\u201d Kuckelman said. <\/p>\n\n\n\n

Kuckelman noted that the City agreed to a similar RHID for an existing building, the Frontier Apartments, located across the street from St. Joseph Catholic Church. <\/p>\n\n\n\n

The projected RHID revenue is $1.325 million, which would only cover about 30% of the total RHID-eligible costs.  The developer is also applying for IRB sales tax exemption to be discussed at a later date.<\/p>\n\n\n\n

The adoption of the resolution is only the first step towards establishing the RHID, with final action not scheduled until March 2026. The resolution passed 5-0. <\/p>\n\n\n\n

Kuckelman then reviewed the issuance of industrial revenue bonds for the proposed 24\/7 truck stop. <\/p>\n\n\n\n

The developer plans to construct a 9,000 square-foot travel plaza and convenience store near Exit 157. The space would include gas and diesel fuel pumps, EV charging stations, a fast-food restaurant, dog park, and RV camp sites. <\/p>\n\n\n\n

\u201cIRBs are kind of a unique bond issuance, which are meant to provide at least one of two incentives: either a property tax abatement and\/or sales tax exemption on materials,\u201d Kuckelman said.<\/p>\n\n\n\n

In this case, the developer is only seeking a sales tax exemption on materials. IRBs do not impact the City\u2019s debt limit or rating and do not require taxpayer commitment. The developer is solely responsible for payment obligations. The estimated benefit is valued at $125,687. The developer will also be seeking CID and TIF incentives at a later date. <\/p>\n\n\n\n

The total investment for the developer is $11.1 million.<\/p>\n\n\n\n

Citizens are allowed to comment on specific agenda items after they have been introduced. Citizen David Koshiol pushed back on this incentive.<\/p>\n\n\n\n

\u201cI think that $125,000 in sales tax might go a long way to a city who runs on sales tax,\u201d Koshiol said. <\/p>\n\n\n\n

Koshiol noted that if 24\/7 was not to use the land, other truck stops or gas stations would take the opportunity. <\/p>\n\n\n\n

\u201cIt just seems like we\u2019re tossing out money to anyone who wants to come and invest here,\u201d Koshiol said. <\/p>\n\n\n\n

Koshiol ran for City Commission this year, but missed being elected by 63 votes. After attending last week\u2019s work session, Koshiol also posted a video on Facebook criticising the commission\u2019s use of IRBs and RHIDs. <\/p>\n\n\n\n

Mayor Sandy Jacobs addressed this in a statement at the end of Thursday\u2019s meeting.<\/p>\n\n\n\n

\u201cThere was a clear attack on social media shared with me by others, because I stay out of the fray on social media, so someone would have to bring it to my attention,\u201d Jacobs said. \u201cFrom a personal perspective, I have served this community in various ways for 50 years. I ran for public office to continue serving, to work within my belief of doing the right thing every day.\u201d<\/p>\n\n\n\n

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

A public hearing was then opened regarding the issuance of the Agiliti Industrial Revenue Bonds and An Exemption from Ad Valorem Taxation.<\/p>\n\n\n\n

Agiliti is a manufacturing and medical technology company located in Hays that is looking to expand its operations. Agiliti currently employs 91 employees and is anticipating adding another 140 jobs. <\/p>\n\n\n\n

This project is eligible for a 10-year property tax abatement in addition to the sales tax exemption.. <\/p>\n\n\n\n

The developer\u2019s total investment is estimated at $6.55 million. <\/p>\n\n\n\n

The estimated sales tax benefit is $101,036. The City\u2019s property tax abatement is estimated at $92,143 per year. The company has also worked with the state to secure other incentives<\/p>\n\n\n\n

Since the property tax abatement component is in place, a public hearing is required. If the resolution is approved, the commission would approve the ordinance issuing the bonds in December. <\/p>\n\n\n\n

Vice President of Agilit Larry Askew said there are a lot of options the company could have chosen and he appreciates the commission for considering options that will allow Agiliti to stay in the area.  <\/p>\n\n\n\n

\u201cAll of the incentives we have sought and are acquiring through the state are all performance-based,\u201d Askew said. \u201cSo this is certainly not an attempt at any sort of a grab or to do anything other than grow organically and in a very healthy way in the community.\u201d<\/p>\n\n\n\n

Eddie Herman, president and CEO of Hays Medical Center, spoke in favor of the proposal. <\/p>\n\n\n\n

\u201cFor me, for Hays Medical Center, we see this as a really great thing for our community,\u201d Herman said. <\/p>\n\n\n\n

Koshiol spoke up again, disagreeing with the issuance of the bonds.

\u201cI believe that Agiliti would stay here regardless of the incentive,\u201d Koshiol said. <\/p>\n\n\n\n

Askew said it was not a guarantee the company would have stayed in the area, as the building is not currently theirs. Part of the expansion includes the purchase of their existing facility. <\/p>\n\n\n\n

Askew further discussed how Agiliti is and will continue to support the community. He mentioned that he is working with Fort Hays State University to develop a pipeline of workers, ensuring that people who want to stay in the area have access to good-paying jobs. <\/p>\n\n\n\n

\u201cWe\u2019re not just an empty building full of minions run by some place in Minneapolis,\u201d Askew said. \u201cWe are a thriving business and I\u2019m very proud of it.\u201d<\/p>\n\n\n\n

The hearing was closed and a motion was made on the resolution. <\/p>\n\n\n\n

Vice Mayor Mason Ruder thanked Agiliti for its commitment to Hays. <\/p>\n\n\n\n

\u201cA company as large as your guys\u2019, you could go anywhere you wanted to,\u201d Ruder said. <\/p>\n\n\n\n

Koshiol made a final comment.<\/p>\n\n\n\n

\u201cI wouldn\u2019t have as much of an issue with us giving out the IRBs and the other incentives if we weren\u2019t just handing them out to everyone,\u201d Koshiol said. <\/p>\n\n\n\n

Koshiol noted this is not an issue with Agiliti. <\/p>\n\n\n\n

\u201cYou guys are worth an investment like this,\u201d Koshiol said. \u201cPerhaps all the other businesses and developments that we\u2019re giving these incentives to, maybe we should have held out for a business like this.\u201d<\/p>\n\n\n\n

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

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