New economic development policy aims to make life easier

By ERIC W. NORRIS

Hays Daily News

This summer the Hays City Commission passed a new economic development policy that would more clearly define relations between the city and new businesses coming to town.

The policy was initially presented to the commission in June 2003, and, after a series of rewrites and revisions, was passed with a 5-0 vote on Aug. 26.

The intent of the policy is to award financial incentives to new or expanding businesses or industries in an effort to strengthen the local economy.

Requirements that must be meet by both industrial and retail businesses before consideration for incentives are clearly defined in the policy, such as including a company profile and a cost benefit analysis.

Using financial incentives is not a new practice in the city but it has never been standardized as it is now under the new policy.

Among the final changes to the policy was a suggestion by Commissioner Henry Schwaller IV to sharpen the target objectives of the industrial economic development section by keeping the focus on industries that create a high caliber of employment.

Industries that hire employees of high skill, allowing for high wage jobs with increased benefits and superior working conditions, he said, should be the goal.

The policy includes a job bounty designed to encourage new or existing businesses to hire on new employees.

The job bounty will pay new or existing business if they create at least 10 new permanent positions in their companies that pay over $10 per hour.

The businesses will receive a $1,000 incentive for each position created.

If businesses pay at least $15 per hour, the incentive increase to $1,500 for every new job created.

The incentives would be paid out to the businesses in 20-percent increments over a five-year period.

Employers wishing to participate would have to apply for the program and meet and maintain hiring guidelines throughout the year.

“It is important to understand that the incentive is only to be paid if the business keeps those 10 positions throughout the five-year period,” Gustafson said of the bounty.

To apply for any incentives, a nonrefundable $1,000 application fee is required from the businesses.

The creation of the policy arose from the incentive packages created to woo Home Depot into locating a store in the city, as commissioners saw the need for consistency when dealing with businesses in the future.

Lowe's Home Improvement, following behind Home Depot, was the first to apply for incentives offered by the policy. The application fee was paid but Lowe's eventually pulled out of the running.

Reporter Eric Norris can be reached at (785) 628-1081, ext. 143, or by e-mail at

enorris@dailynews.net.