Grow Hays’ latest RHID presented to USD 489 Board of Education

On this episode of the Post Podcast Grow Hays, Executive Director Doug Williams shares information about an RHID planned for downtown Hays.

Transcript:

EDITORS NOTE: Transcripts are provided by an automated service and are not verified for accuracy.

 

James Bell 

Grow Hays, Executive Director Doug Williams recently presented before the Hays Board of Education about and RHID planned for downtown Hays, he stops by to share some of the details on that and more on this episode of the Post Podcast.

 

Grow Hays executive director Doug Williams 

Michael Graham rentals, proposing or is going to put in a apartment complex that fourth and fourth right behind the old Washington School location 33 or 36 units and he had applied to the city for a row housing incentive district incentive. And on July 28, the City Commission approved that and then it goes to a veto period for 30 days for the school district or the county can veto that act and stop that from happening. And so we're on the homestretch of that veto period and should be finalized like next week, and then he'll be free to start construction down there to get some much needed housing going in. Hayes. Very good.

 

James Bell 

I like to hear that. Do you expect any of these? Well, first, maybe we want to talk about this? Why do you have to go to the school board and the county for that? Why can't he just take care. But well, the way

 

Grow Hays executive director Doug Williams 

incentives work and the myths, I think a lot of people don't understand exactly how it works, a lot of a lot of people have the impression that it takes away the part of their tax dollars go to pay for these quote unquote, incentives. And that's really not the case, what it what it does, it allows the developer to recover some of his development costs, through the property taxes, he pays going into the future. So each year, the owner of these properties will pay property tax just like everybody else, but a portion of that will be routed back to them to pay for some of the street improvements, the underground, you know, sewer, water, electric, some of those kinds of things, that they can recover some of their costs on that through a portion of those tax dollars. The reason the city, the county and the school district participate in this process is because they're all affected by it. If if this incentive was not granted, they would get a portion of those property taxes that he would pay on an ongoing basis. So they have to say, Okay, we believe that the benefit of the additional housing is better for the community, then the property taxes we might receive on this project, not to mention the fact that without those type of incentives, the project probably wouldn't be done. So there's the trade off and kind of the bet that most governments make is that we are betting that we're going to this is going to happen, and in the long run, we're going to get our property taxes from it. And it's going to add much needed housing. And we're willing to give up a little bit along the way to make that happen.

 

James Bell 

Yeah. Do you expect any of those boards to take issue? I know you I'd say you've been in front of the school board already? Do you? Do you see any? Anybody saying no, I

 

Grow Hays executive director Doug Williams 

think I think they understand the need, I think they understand that the impact of them is really doesn't exist, it's not going to hurt their current budget. In the long run, they're going to get additional tax dollars from this asset that is developed in the community. So I don't anticipate any issue from from either of those organizations.

 

James Bell 

Yet, really, I don't know. You know, as you talk about these, it sounds like it's a win win win. Everybody takes out of this deal. It's just delaying a little bit of tax revenue. I don't know why. Because it is sometimes contentious, when you set up an Rh ID or a program like this, people have that misconception that somehow they're paying extra taxes for it. Right?

 

Grow Hays executive director Doug Williams 

They do. And I think it is a win win. But you know, there are rules and regulations that have to be met their statutory UL requirements to get one of these, one of them being a housing study, in the case of an Rh ID, you have to have a housing study that shows you have a need for housing. Because not only is the you know, the local taxing entities are not receiving some dollars, but some of the state dollars are not generated. Some of your property tax that goes to the state is not generated in some cases. And so they have some requirements where you have to show a need, the Secretary of Department of Commerce has to sign off on these things. And then they you know, the local taxing organizations have to look it has to meet some criteria for them to so it's not like they're given willy nilly to just anybody that applies. They do have to meet some requirements. And in the long run, it is good. But there obviously are are those who don't feel any incentives or an order that nobody should ever get any incentives because maybe well, I didn't get any. But the case may be there's you didn't ask for any now they're available to anybody that wants to apply for him. Anybody that's willing to go out and do and invest, I believe the projected number that was put on the application for this apartment complex was three and a half to $4 million. Anybody that wants to go out and do that is more than welcome to apply for these incentives. And, and I'm sure that they would be looked upon favorably by the governing bodies.

 

James Bell 

Yeah, it's really all about just developing what we need. Because we've talked time and time again, there is a massive need for housing here in Ellis County, and, and far beyond. But definitely here, notice County,

 

Grow Hays executive director Doug Williams 

we certainly have a large need in Ellis County. Sometimes these are the things you know, development costs are extremely high. And in order to make it work financially, for somebody willing to put up that amount of money, and they've got to get some incentives anywhere they can.

 

James Bell 

You know, on the flip side of this something else we've talked about, it's been in the news pretty recently, the microfactory project, I hear you have some, some updates there as well,

 

Grow Hays executive director Doug Williams 

we are moving along, although you don't see it on the surface. But plans have been finalized. Architects are working with all the various entities that they have to work with mechanical engineers, structural engineers, civil engineers, all of the things that are going on to get that going. We're anticipating a groundbreaking sometime in October. And so we're excited about that with completion sometime by end of year 2023. And so we're eager to get going on the construction we're talking with, we've talked to half a dozen potential tenants in the building that may have an interest. And that's great, because we definitely want to use it as the incubator, it's supposed to be for manufacturers. And so we're making headway, it just never happens as fast as you would like. And we also are going to be in front of the City Commission asking for some industrial revenue bonds to help with that project that allows the developer which in this case, is gro Hayes to avoid the sales tax on the materials that are purchased to construct the facility, and then potentially a property tax abatement for a period of time to try and help us get on our feet with that project, get some tenants in place, and get it operating at a financial break even point, which is what our goal is also, the project, as you may recall, it's about a three and a half to $4 million project, the base grant from the state of Kansas was 2.6 million. So we're 900,000 to a million dollars short, we did get a nice donation of the land from Heart of America, but we still got a deficit that we're going to have to either raise some funds, or we're going to have to borrow that money. And obviously, it's important that we have some means to pay that back over the life of the building. And so we can get it going. So you'll anybody who watches the activities of the City Commission and and that kind of thing will see that application coming forward pretty quickly.

 

James Bell 

For a building like that is there a lot of extra considerations you have to take to get that facility up and running, I'm just imagining all of the industrial efforts that are going to be going on in there probably require a little bit different layout and structure than a traditional commercial building

 

Grow Hays executive director Doug Williams 

about a zillion when you're talking about a structure like that, that's going to be focused on manufacturers, all kinds of other considerations come into play things like getting product in and out of the building, you know, raw materials in and then finished goods out? Where are you going to store them on site? How thick does a concrete floor need to be? Because how heavy is the equipment that's going to be in there? How tall do the ceilings need to be? What type of electrical capacity do you need? Are there any specific heating and cooling and air handling situations that go on, it just goes on and on. And it's been I've been around the residential construction, pretty much all my adult life, but not a whole lot of commercial, but particularly industrial construction. And it has been an eye opener for me just a lot of things that I never would have thought that you had to consider and people that you would have to involve. And that's one of the reasons why it's expensive. You have to do things a lot differently. You have a lot more engineering expertise that you have to bring into the into the mix. And so it's complicated.

 

James Bell 

You know, you mentioned you were talking to some organizations that might be interested in moving in there. I wonder, you know, is that is out quickly, is it going to be ready once the the facility is up and running? Are you going to be able to move those guys in immediately or is it going to be a little bit of a waiting period as you set up for those individuals?

 

Grow Hays executive director Doug Williams 

Not really sure but our goal is To have these people pounding on the door wanting to get in and operating, when by the time it's finished, that's one of the luxuries we have, you know, we've got basically a year to year and a half here to find tenants find tenants that have similar type operations, one of the ongoing challenges will be one manufacturer is a kind of a dirty process generates a lot of hazardous smoke or whatever in their process next door to and I'll use an extreme example here, I don't anticipate this, but somebody who's doing microchips, you know, you you can't cohabitate with somebody having a dirty process with somebody doing a very clean process. So we think that, that our challenge is not going to be to find tenants, because I think we're going to have lots of people interested, it's going to be matching up those tenants in a compatible way that don't cause each other problems.

 

James Bell 

Yeah, I'm curious, you know, can you kind of alleviate those concerns with construction, or is that something that's just gonna have to be like, oh, you know, what, you have to pass on some organizations, maybe,

 

Grow Hays executive director Doug Williams 

depending on the organization and the kind of the opportunity that they pose, we may be able to deal with some of it through construction, you know, separation walls, or something like that. I think you and I have talked before, my original thought was, there would be these individual spaces with walls all the way and this would be your space, and this would be your space. But in talking with the experts in manufacturing, there are no walls planned to be inside that building, it will be open, you will have your space, you will do your thing here. But the guy next to you, you know, I don't know if it's a Wk RP in Cincinnati piece of yellow tape on the floor that you don't cross this space. And but there will be designated space for each operation. And they will, they will operate that space. And so things like air handling and the type of processes they're going through become critical to make sure those are compatible.

 

James Bell 

Okay. You know, we've got just a couple minutes left, you've got some events coming up at gro Hayes I think we want to talk about right,

 

Grow Hays executive director Doug Williams 

we do we have our think like an entrepreneur class, which starts on September 14, that's an eight week course it will be taught by Chris Munch. And always a good course, always a lot of fun, and always very worthwhile to anybody. You've been a past participant and and anybody who has an interest in owning and operate their own business, I would highly recommend it, I think we've got an early bird special for 100 bucks prior to September 1, to sign up. And after that, it's like 150 bucks, we feed you eight meals, you know, we feed you every time. So for the price of entry is just really cheaper than what you could eat for for that. And all the content is basically free if you look at it that way. And it's really good. And then we have our quarterly luncheon coming up on September 7, at Breece base where we're going to be calling Belzer, the assistant city manager and myself, we're going to be talking about the housing study that was conducted by the city of Hayes and came out in June. So a couple things going on in the near future.

 

James Bell 

Very cool, very exciting stuff. And if you want to find out more about those events, we'll get signed up for that class and information available on your website,

 

Grow Hays executive director Doug Williams 

website, Facebook page, call us, whatever you want to do, because we're we got a lot of ways to get that information. And we'd love to see a lot of people in the class and obviously a lot of people in the in the quarterly lunch and I think we've got 40 signed up already for that we got a capacity of about 45 So if you if you have an interest in coming call us to reserve a spot

 

James Bell 

very good. You will also have the Zoom meeting link available right

 

Grow Hays executive director Doug Williams 

put the zoom out there on our website and on Facebook. So if if somebody can't make it down, you can certainly join us on Zoom and and ask questions on Zoom. So join us that way if you can't be there in person