Finding a new Home

By ERIC W. NORRIS

Hays Daily News

According to Public Works Assistant Director John Braun, the contract the city has with Home Depot says the opening date for the store is scheduled for early August.

Ground was broken at the site in late November by crews contracted by Engineered Structures Inc. out of Boise, Idaho. After the foundation was set, the building began as a steel frame erected on top of the foundation and precast concrete was attached to frame.

The incentive package agreed upon between the city and the developer D.J. Christie of Overland Park to bring Home Depot to Hays was two-fold and totaled $3.6 million.

The first component of the package was a transportation development district bond issued temporarily by the city in the amount of $1.4 million.

The TDD bonds are to be used for the development of road infrastructure leading to the 30-plus-acre development site. This includes the construction of two streets leading to the development, Sherman Avenue and General Hays Road.

The second of its kind issued in Kansas, the TDD bonds, according to City Manager Randy Gustafson, are unconditionally guaranteed by Home Depot.

The bonds will be paid back through an extra 0.75-percent self-imposed sales tax on goods sold in the boundary of the development.

The companion to the TDD bond in the incentive package is the general obligation economic development bonds issued for $2.2 million.

The money is to be used for basic infrastructure improvements, such as the construction of parking lots and water and sewer lines.

As with the TDD bonds, the GO bonds are temporarily issued by the city but ultimately guaranteed by Home Depot.

Revenue for paying back the GO bonds will be generated by the city allowing one-half cent of the city sales and property taxes in the district to be used for repayment.

This tax credit will not include the additional sales tax imposed to repay the TDD bonds.

Based on estimated sales of $40 million to $53 million, Home Depot could possibly generate $300,000 to $400,000 annually in sales tax.

ESI is the general contractor hired by D.J. Christie for the project and several local contractors have been hired, including APAC of Hays, which is responsible for much of the site work.

Braun reported in November that ESI has constructed about 41 buildings for Home Depot.

“ESI is working for Home Depot, constructing the building, the parking lot and the infrastructure surrounding the development,” Braun said. “The city is overseeing the project, making sure that all is up to code.”

Braun said that once the infrastructure is complete, including the streets and underlying storm and sewer drainage system, the city will assume the responsibility as a public right of way.

“Part of the infrastructure work will include a large storm water diversion system,” Braun said.

This is essentially a 4-foot high by 9-foot wide concrete box connected to the drainage system that will divert storm water away from the normal city system.

“This new system will control drainage from this part of town,” Braun said. “Instead of sending the water through Hays and into the downtown area, it will be diverted to Chetolah Creek.”

After the building's rough construction is finished, crews will focus their attention on getting water to the building and tapping into the city's sanitary sewer system.

“The most visible work happening next will be off site,” Braun said. “They will start the dirt work and grading for the construction of Sherman Avenue and extending 43rd Street.”

The development will showcase Home Depot as the major draw and will eventually include one other “big box” store and possibly four other retail stores.

“It is the developer's project and it is up to them concerning whatever other stores will be included in the development,” Braun said.