Hays USD 489 Board of Education members learned information this week how a proposed convention center might affect the district’s property tax collections.
Assistant City Manager Jacob Wood addressed the school board at Monday’s meeting about the proposed Hilton Garden Inn and convention center.
The Hilton would be a 75,000 square-foot, 100 room hotel with convention space, a lounge and restaraunt located just west of Walmart SuperCenter on property recently annexed into city limits.
The city will conduct a public hearing Feb. 8 on a request for a 20-year Tax Increment Financing district from developers Hays Hotel LLC and Mitra Developers LLC.
“The new property value after the hotel is built, you would not collect taxes on the supplemental levy and on your declining enrollment levy,” Wood said.
But the district would continue to collect taxes on the property for its 20 mill general budget levy and 8 mill capital improvement levy at the new value of the property, he said.
Because the district — as well as the county — collects taxes on the property, either entity could veto the TIF if they pass a resolution within 30 days after the hearing stating the TIF could have an adverse affect.
“If you were to do that, it would put a hold on this project altogether,” Wood said.
“We don’t think this will happen if the Tax Increment Financing isn’t approved. At this point, the developer has said this is something they need to have in order to move forward,” Wood said.
City staff has recommended the city commission approve the TIF request, as well as a 22-year, 2-percent Community Improvement District sales tax and a 20-year, 5 percent transient guest tax rebate. Neither of those collections directly would affect the school district.
Wood said the development will benefit the community.
“The extension of 43rd Street would open up additional area for development out there. We would get additional sales tax revenue for the city and the county. There’s going to be convention space, which we don’t have much of that in the community right now,” he said.
Board member Paul Adams asked Wood if he had any financial models for the board to examine.
Wood said he did not have those figures broken down, but the property is expected to bring in $3.7 million in property taxes over the 20 years.
“But if it’s not built, there won’t be any at all,” he said.