By KALEY CONNER

kconner@dailynews.net

Possible revisions to the city's newly adopted Community Improvement District policy sparked some debate at Thursday's Hays City Commission meeting.

The changes were proposed by Commissioner Henry Schwaller IV, who said he would like to place more limits on how tax money generated in these districts can be used.

"We had a permit approved for a CID and during that process we discovered that there were things we hadn't contemplated," he said. "So I asked that the existing policy be revised."

The commission approved the city's first CID in February, enabling a 2 percent sales tax to offset development costs of a new Holiday Inn Express and restaurant on Roth Avenue. The tax will only apply to customers using the new businesses and would sunset after 20 years. It cannot generate more than $3 million.

Schwaller, who voted against establishing the district, suggested prohibiting CID taxes from being used to fund inventory or supplies, interior furnishings and advertising or promotional expenses.

A state law passed last year allows municipalities to establish these districts. Mike Michaelis, executive director of the Ellis County Coalition for Economic Development, expressed concern that limiting statutory provisions could make it more difficult to recruit businesses.

"You're putting restrictions on a legislation that was meant to let communities have a tool to grow, but you've made it so restrictive that it's not going to be useful," Michaelis said. "And then you get to the point where you're starting to say, 'OK, well, we're going to restrict things and make it like Boulder, Colo., and we're so elite we don't want any growth.' "

"I am absolutely offended by such an ignorant, broad-based statement," Schwaller said. "... This is ridiculous. We had an applicant that wanted to buy soaps, toilet paper, trash cans and run advertisements and the commission said no. That's all we're responding to. And I don't like your criticism."

Following some debate, commissioner Barbara Wasinger said the intent is to adapt the state legislation to fit community needs.

"Everything needs to be adapted to a local community in that sense," Wasinger said. "And that's why we were given that latitude to do that."

"In my case, I'm just looking for tools that will help us grow," Michaelis said.

Rather than creating a list of permitted uses, City Attorney John Bird suggested a provision that would prohibit CID tax dollars from funding operational costs.

Rather, the money would be available to help with capital improvements.

"The distinction you want to draw is you don't think the city should sponsor or allow to be built a project that they get reimbursed for intangible things, consumables ... that sort of thing," Bird said.

An ordinance with that change will be introduced at the commission's April 1 work session.

In other business:

* Construction of a lift station to provide sanitary sewer services for the sports complex and to meet future city needs will be on next week's agenda. Total project costs are estimated at about $350,400 with costs to be split between the sports complex sales tax, Fort Hays State University and the city's water/sewer fund.

* A resolution finalizing the city's land acquisition for the sports complex site and land adjacent to Fort Hays Municipal Golf Course will be acted on next week.

The city is purchasing 120 acres in the amount of $300,500 for the sports complex, with 10 acres for the golf course selling at about $20,100.

*  Next Thursday, the commission will consider spending $35,000 to pave the city compost site.

* Abatement of a vehicle at 3505 Vine will be acted on next week.