On May 8, 2025, the Hays City Commission took the next step in the statutory process to provide economic incentives through the creation of a Reinvestment Housing Incentive District (RHID) for the residential housing project and related infrastructure for Phase 4 of the Tallgrass 2nd Addition project.

Following a Public Hearing on the matter, the Commission unanimously approved Ordinance No. 4070 establishing an RHID, adopting a Development Plan and approving a Development Agreement between the City and Heart of America Corporation’s Tallgrass 2nd Addition Project, Phase 4, which aims to create 101 single-family homes and infrastructure to support and serve the development.

Assistant City Manager Kuckelman reported that Heart of America proposes that the City finance and construct the RHID eligible costs related to the project, and that the City utilize RHID revenues to offset the City’s costs, including debt service requirements on any bonds issued for the project.

“The Developer [Heart of America] will provide a deposit equal to 30% of the projected infrastructure costs. The deposit could be utilized by the City to pay for infrastructure costs or to pay debt service on general obligation temporary notes and bonds that are issued to pay for the project costs. Any RHID revenue generated in excess of City costs and debt service requirements would be used to reimburse Developer for RHID-eligible expenses on a pay-as-you-go basis. RHID collection will cease upon the earlier of 25 years or full payment or reimbursement of all RHID-eligible project costs,” said Kuckelman.

He provided the Commission with an update on the statutory schedule for the RHID and stated that the process is on track for the Tallgrass 2nd Addition Project, Phase 4 RHID to become effective June 19, 2025.