City Commission - Regular Meeting

Uh, first item in the order of business is consideration of the approval of minutes from March 26, 2026. Uh, questions, changes, or comments on those? I have no changes. I have none. Nothing. Okay, they will stand as presented. Uh, next item, we have citizen comments for non-aggenda items. Anybody who'd like to speak to the commission on non-aggenda can come up now. And please state your name for the record.

Thank you. uh Ken Kennedy, 4500 Dami Lane, Hayes, Kansas, and thanks for allowing me to take a few minutes and inter interact with you about an issue that I just recently become more aware of and I thought it was important to share. And of course, it has to do with taxes. Imagine that. But uh I do want to start by saying u I I printed my notes in large print because you still haven't got that light over here. Remember about a year ago I said we need a light for us older people that can't see us. Well, I know. I think that is the darkest corner of the room. Yeah. And then also I wanted to mention that when I see on the budget, I mean on your workstation the word budget mentioned, I think that's a personal invitation for me to come. Absolutely. Is that right?

Oh, every every time you see the word meeting, you show up. That's what we want. But in all seriousness, I came to the workstation, but I don't know what your protocol is with the workstation. I don't think you really have public input at workstations. Not necessarily. It's kind of up to whoever's running the meeting. All right. So, I didn't I didn't most of the time we won't turn you away if you want to talk to us.

I didn't make comments the last time, but I I want to start with reminding you of of the part of taxes, the three components of a good tax system. And I've done this each time I've come up. And one of them's adequacy, one's equity, and the other's efficiency. Now, all it takes all three of those to have an equitable and fair tax system. But I I encourage you always to focus on efficiency. Uh you'll never have enough. There isn't enough taxes in the world to do everything that needs to be done. We all know that. But efficiency is critically important. And I want to compliment you because last session, a week ago, I heard the word efficiency mentioned two times. So I think I'm making inroads. Oh, absolutely.

Uh and I appreciate that. But there's something more important that just came to mind that I think can benefit some of our citizens, some of our Ellis County citizens and some of our Hayes citizens. And I think it's critically important. You all may know it. I should have known it, but I didn't until just recently when I started reading some well, in fact, when I started preparing my income tax and then I was reviewing it and it came the paper came to mind again and so I did a little research on it. So, first I want to qualify my comments by saying I'm not an accountant and I'm not here making tax recommendations to anybody. I'm here to share some information that may be beneficial to some, but it's important if it is beneficial to them, to seek correct advice on this particular act. And secondly, I hope that what I do tonight maybe gets the information out to the public a little more, maybe through Hayes Post or through what I share tonight with or this afternoon with each of you. But it's it's called the Kansas Seniors and Disabled Veterans Property Tax Relief and it was an act that was enacted in 2022 as I understand it, revised in 2025 to include more people. But there's several criteria and if you meet those criteria, you're eligible for a refund of your personal property taxes that you paid based on the difference of the value appraised value of your house today and the taxes on that appraised value versus what it was when you be be first became eligible. That could be as far back as 2022. So, someone that's lived in their home since 2022 may be eligible for the difference between the taxes today, the 25 taxes versus the 22 taxes, a refund. The beauty of that refund is it comes from the state of Kansas. And Toby and I had a chance to talk about this a little bit this morning. Uh the beauty of that refund, it comes from the state of Kansas, not out of your revenue, not out

of the county's revenue, but yet it is tremendously possibly beneficial to senior citizens. It's applicable to senior citizens and disabled veterans only. You have to have an income below roughly $58,041. Now, when I say $58,41, that's that's not a lot of income. Understand? But it's off your Kansas return, not off your Internal Revenue Service return, not off your federal. It's of your Kansas return. And for seniors, these I I believe I'm correct on this, and I called the state this morning. They're not as clear on this law as you might expect. I called the county and and Bobby was very helpful to me, but I think they're kind of walking through it a little bit, too. U but $58,41 that excludes social security and if you have any capers, uh retirement funds. So, social security and capers are excluded. Now, a lot of our seniors in our community live primarily off of social security. Now, they would have some other income, but maybe some may not a lot of other income. So, if they don't, you exclude those and they easily might qualify under the $58,000 threshold to be eligible. Certainly, our retirees, state employees, government employees, they're retired now, past 65 would likely, many of them might be able to get this refund. And I share an anecdote story. I had a friend of mine call me. I was talking to him just yesterday and he said that his accountant prepared this form for him and he thought he was going to save 800 bucks in a form of a refund back from the state of Kansas for his personal property tax. Now, that may not seem like a lot, but certainly is a lot to some people, a huge amount to some people. And so, as I've tried to share with you before, I've always been very concerned about those of us, those of us in our community that maybe cannot afford, none of us really want to pay taxes, but there's a lot of people here

that taxes really do hurt. I mean, it has to take the place in some cases of living expenses, and that's sad. So, when we think about those, now understand, I won't qualify for this. Wish I did, but I won't. Uh, but uh but many, many will. And so I wanted to share that with you and again it's called the Kansas Seniors Disabled Veterans Property Tax Relief and the form is KS40 SVR and I there's and it's part of the Homestead Act. The Homestead Tax Relief Act has been around since 2022, maybe before that. I think back to the 70s maybe some of it. But this is kind of a new say. There's three there's three different acts, three different parts of that act that you can qualify under. This one's rather new and not clear to a lot of people. So that's the purpose of me coming tonight is that I think we could help some of our citizens, not damage the revenue of our community in any way by sharing this information. And I want to share that if they're interested, if anyone's interested in it, I really encourage them to do a couple three things. They could do their own research, which I tried to do. And let me tell you, it's not an easy task. Right now, calling the state is not an easy task because they're flooded with phone calls from people trying to get their income tax prepared. But the form goes in and must be in on April 15th. So, it the form for this relay for refund is the same time as your tax return is due. So, they could call the state and do their own. More importantly, if they work with an accountant, they could call their accountant and their accountant may or may not be familiar with it, but they could research it pretty quickly and become familiar with it and help them out. And third, some of our taxpayers that I should say some are senior citizens that maybe only receive social security. I not all of them have for some reason I don't I don't know the law with this, but for some reason they

don't necessarily have to file an income tax return. uh when you get to a certain age, your income is solely social security. You don't have to file a tax return as I understand it. Now, I'm not sure about that, but that's the way I understand it. But the point is, if they exist in our community, they can work with the county clerk, Bobby Darling's office, will help them in filling out this form and help them submit it. So, even though they may, excuse me, even though they may not file a tax return, they are still qualified for this tax refund that might be eligible. The beauty of this is it kind of refunds him for the increased assessed valuations that's happened which have been significant from 2022 to 25. They've been significant as I you know I've been here before mentioning how much they've went up and that's been the impact of tax increase more than the mill levy. The city's mill levies stayed the same but the increased valuations have really increased the taxes. So, I just came for the purpose of sharing that knowing it doesn't help everyone, but it certainly may help senior citizens or disabled veterans that are on somewhat more limited income for sure. So, it's important that we know and you know, I want to conclude by saying I don't want to develop the reputation of being anti-ax. I am not anti-ax. I I realize the importance of of taxes to every community and every county and the state of Kansas and we all have services that must be fulfilled and you have a tremendous task of figuring out what those services are and how much taxes and all that and I appreciate the job that you have to do and I don't want to be perceived as anti-ax but I am very conservative and I am always about efficiency. I mean, if I see waste, as Toby knows, if I see what I perceive to be waste, you know, I I at least bring somebody's attention. But understand what I see isn't being inefficient, someone else probably they see it as necessary. So, there's always that balance that exists. But I want to close

by again reinforcing the fact that if there are any senior citizens, I hope the Haze Post would pick up a story about this. would be very helpful because the timing is close and uh and the and the form that they would fill out would be KS40SBR is the form they'd have to fill out available from the state, available from their accountant, available from the county clerk. But in closing, I want to say that, you know, I've always thought the only taxes that anyone really likes are those that others pay. And so I'll close with that again. reinforcing that my purpose tonight is just hopefully share some information that would help some of our senior citizens that are maybe on limited income.

Thank you. Do you know um when that when the period is that opens that they can start submitting those? Say again when when the the open period is for them to actually start submitting those. Is that do they have to do that at the beginning of the year? You know, I think you can fill out the form and submit it at any time. Okay. Okay. And and you would do that either directly to the state as I understand it directly to the state or to the county clerk's office. The form can be filled at any time. Primarily you see it as I understand it with the Homestead Act which has been around for a long time. This particular part of it is rather new and been modified in 2025. But um I think that this one can be done very easily at the same time you do your income taxes.

Okay. So, your accountant your accountant will help you with it. And then it's just another form they can submit along with your income tax return if they choose to do so. But a couple of people I talked to, their accountant hadn't. Here's what they said. Our accountant did not have the new software, was not aware of this, and when they became aware of it, they were able to submit the form on my behalf, and they got a fairly significant refund back or going to get. So to answer your question, anytime throughout the year as I understand it, but particularly at April 15th deadline. That's the deadline. Okay. No, that makes sense.

And there's one thing I did want to me. Excuse me. On the bottom. Oh, this is a small print. Now I really need that light. Says on the bottom of the state form. This is specifically what it says. And this form came from a senator. Too many eligible canons miss this refund because they don't know it exists. And so it's it's that new and that unused I would say that a lot just don't know it exists. So now hopefully maybe what I've shared will help more to be aware of it. Yeah. And if you can't afford an accountant, it's nice to know that there's options that they can go to the county clerk and she can help them fill it out as well.

Can our client clerk Barbara Dling's office will help them. I talked to her this morning. They will really help walk them through it. So, yeah. And I think I mean knowing about this obviously I wouldn't have known about it. Um not something that I qualify for so I wouldn't know. Um but it's nice to have somebody who knows what's happening with it and then we can share it as much as we can through our channels so our taxpayers know that there are these things out there that can help them. So thanks Ken. I appreciate that. Well, thank you. Hope it helps some people. Of course. Thank you so much. You're not an old enough. You don't make enough money. Yes. Yes.

Um Okay. All right. Are there any other citizen comments for uh things that are not on the agenda? All right. Move on to consent agenda. Um it's mayoral appointment recommendations. So, April's the big uh month. So, we've got our first section of recommendations uh to be brought forth before approval. So, we had three from the Hayes Area Planning Commission Board of Zoning Appeals. Um it is the final term for the three that are on right now and they wish to complete that. Um they've been great. Um lots of good information that they provide at the meetings. um and they've been very good at identifying ways to um remove burdensome regulations and identify things that we need to address. Uh HCVB advisory committee uh replaces or is for the um obviously the advisory committee and has dedicated spots that hotels have to be a part of um the youth leadership advisory board which is an annual thing. So that's seven high schoolers from freshman to senior. Um they start uh May 1st with the new term. So usually what we've done in the past uh David and Elena since you guys are newer to this um what we've done is we let the kids sit down all the recommendations they come in they sit down and they say you know what based on what they've submitted here's our recommendations for the next group as well. um they've been very great uh very good with that. So they've presented seven uh seven kids for the next board. Um really looking forward to seeing what's coming out of that. Um and then the Haze Public Library board, we had

two applications for two spots. Um one was a reup she has completed or she will be completing one term and then the other one is former uh educator Sue Antibo who has not served and she is wanting to serve now. I move that we approve the consent agenda. Second. Okay. Motion and a second. Any questions or comments? Uh, anything on that? I would like to just say thank you to all the youth who applied. I think that's the most applications we had come in. It was great to see all the interest.

Yeah, it was a lot. It was a lot of kids and a lot of it. I know the I asked the the president of the the current youth supporters graduating this year. He was like, "Yeah, it's very difficult decision. They spent a long time going through all of them and recommending some." So, I appreciate the work they put into that. Future leaders. Absolutely. David, anything? No, I just wanted to say I appreciate all the first time applicants, right? There's a lot of fresh blood coming in here. It's good to get some new ideas and perspectives. I appreciate that. Absolutely. Okay. Well, then I'll call for a vote on that. All in favor, please say I. I. I. I.

Opposed. Passes 40. Next up, the 2025 audit. Adams Brown and Kim.

Good afternoon. Kim Rup, director of finance. Um, it's required by law that we have an audit once a year, third party audit. And so we have Jamie Benesk, CPA and principal with Adams Brown, CPA, is here with us to report on her findings for 2025. Uh had a great audit. Uh very smooth audit. We're very happy with it. No significant deficiencies, no misstatements. And I do want to indulge a little and and thank my staff uh because they dot the eyes, cross the tees, count every penny. Um, that's how we get a report like we have before us today. Makes my job easier. Makes me look really, really good. Um, so I want to thank account clerk Doming Box, accounts receivable clerk Michelle Yanda, accounts payable clerk Brenda Deant, Deputy City Clerk Dayton Enri, and city clerk Jamie Bright. They put in a lot of lot of effort every month to make sure everything balances. And so I will need a motion uh after Jaime's presentation. We'll have that up on the on there. Thank you, Kim.

Thank you, Kim. Uh, like I said, my name is Jamie Benek with Adams Brown. And also, like you said, the audit went really great this year. Um, all of Kim's work training the new staff and instilling confidence in them and setting them up for success. It really, it really shows and setting them up for success only helps the city be set up for success as well. So, um, the audit report should be pretty quick and we'll just get right into it. Um, page one is the independent auditor's report and we have an unmodified opinion on the regulatory basis of accounting. So, um, essentially what this means is in our opinion, your financial statements are materially correct. So on page five, this is the actual financial statement that we are issuing that opinion on. So, it has all your funds listed there with the unencumbered cash starting on the left side of the page. And as you work your way to the right, you'll see the receipts added, the expenditures, and then ending unencumbered cash for December 31st, 2025 for the city as a whole was 52,280,000. So, um, pretty pretty normal. But there are two funds that have a negative unencumbered cash balance as of the end of the year. And that's just because of the way those funds operate. the the one is your airport improvement fund. You spend the money first and get the money um a month or a quarter later depending on the grant and then the capital projects fund as well. You have additional funding coming in to reimburse that, get it back to zero. So um nothing unusual there. Next page on uh page six starts the notes to the financial statements. Um very similar to last year. days don't change a whole lot, but if you do read through them and have questions, I can answer those questions at any time. Um, we have a number of Kansas statutes that we're required to look at and none of

those statutes came back with violations and so um, the footnotes are also very clean. The next page is page 16 that I'll just draw your attention to. This is the summary of the debt for the city as a whole as of December 31st, 2025. So you'll see the total debt there was just under 50 million and then um the payoff schedule is also listed there if you're curious. And then um page 17 is a comparison of the total expenditures for each fund to the budgeted expenditures for each fund. So um as I mentioned there were no violations and that includes no budget no fund was over budget. So the next page is actually page 54 all the way towards the back. Along with the financial statement audit, the city also has to have a single audit. Um that is a separate audit that is in uh over your federal expenditures and this year that threshold increased to a million dollars. So in the past it was 750,000. If the city as a whole spent over 750 you had to have a single audit. This year that threshold was a million. Um you did just barely go over that for 2025. On page 59 you'll see the total federal expenditures was 1,292,000. So because of that um we got to perform another uh audit on your airport improvement program and there were no material weaknesses, no significant deficiencies and no compliance findings for that either. So on page 61 is a summary of everything and it's it's all very clean. Financial statement is unmodified opinion, no material weaknesses or significant deficiencies or non-compliance. And federal awards is also an unmodified opinion, no material

weaknesses, no significant deficiencies and no non-compliance reported. The only other item that I have is uh the letter along with this. We refer to this as your governance letter. any other um communication that we had with management during the course of the audit would be included in here for your information including any other recommendations that we have. Usually those are internal control related to strengthen internal controls not necessarily material or significant dissencies and we don't have any at this time. So again, as as I mentioned, um there was turnover during the year, but I think the training has been great. The internal controls are still in place and um the audit went really well. Um I do want to thank Kim and all the finance department for helping us get the audit done and Jamie out at the airport for all the of her grant documentation and um getting the fin the the single audit done as well. So appreciate everybody's help. Wonderful.

Commissioners, comments, questions.

Oh, yeah. I'm sorry. I guess we need a motion first. I'm sorry. I'll move that we approve the 2025 audit. I second that. Okay. Motion in a second. Uh, now we can have discussion. U, I just thank you for the audit. And the only thing I would ask is is there any chance I know in the past we would get this like a couple weeks out before the meeting just so we could you know look through it because you know looking through it five minutes for the meeting it's kind of hard to absorb it. I apologize that's my doing. I should have had it had it to you two weeks ago and I I didn't get it in your business.

Okay. Thank you. I appreciate that. And Kim and I also want to do I know you've had some staff turnover and I think that says a lot to you having no issues and stuff. So, thank you for what you've done and like you said the training you've definitely done some right. So, appreciate what you do. That's all I was going to add as well is just thank you to all the finance staff. Obviously, you've done a great job with employees in that audit seem to go seamless as it has in the past. So, thank you to everyone.

David Yeah, Kim, uh, thank you and your staff and, uh, the department heads, uh, for making sure that they're doing what they need to do, keeping the records correct, and making sure that you're training appropriately to allow those internal controls to continue. I pro probably failed to give them appreciation as well, and particularly Jamie out at the airport because it's a lot of reporting with FAA requirements and and keeping that all straight. It takes a bit. So everybody getting everything to us in a timely manner as well help helps. Wonderful. Thank you so much. Okay. Appreciate it. Good clean audit. That's what I like to hear.

Okay. Thank you, Jamie. Appreciate you. Okay. I will call for a vote on the audit. All in favor, please say I. I. I. Opposed. Passes 40. Thank you, Kim. Thank you, Jane. All right. Now we'll move on to the public hearing to consider the adoption of the exit 157 247 mixeduse project project redevelopment district tax increment financing tiff redevelopment project plan. Jared.

Good afternoon. Jared Kucklman, assistant city manager. So today we're discussing the final steps in the process for two economic incentives tiff and c that are being requested for the exit 157 247 truck stop project. So, because there are two incentives here, there are a few different actions for you to take once we get to that. So, we've talked about this project before, but just as a reminder, developer does have plans to construct an approximately 9,000 square foot full service travel plaza and convenience store, the southeast corner of 230th Avenue and 55th Street, which is near I70, exit 157. As part of the travel plaza, there would be gas and diesel fuel stations, EV charging stations, a fast food restaurant, dog park, and RV overnight campsites. Developer is seeking tax increment financing or TIFF, and a 2% community improvement district or CI to help support the project. These images here show the location of the project, which as you can see is just of off of I70. This image shows the proposed site layout. See the travel plaza with the convenience store and the restaurant is there facing the west and then the dog park is there on the very west edge of the property and then truck parking is there on the east side. This image is of the 247 location that was recently developed and constructed in Russell by the same developer. So maybe not exactly the same, but definitely something similar here would be constructed. Logistally captures the incremental gains in property taxes within a tiff district. While state statute allows sales taxes to also be captured, the city's economic development policy does not allow this. So these dollars would not be captured as part of this project.

Revenues are captured for 20 years to go towards certain eligible costs and these tend to be infrastructure related. So they're not the vertical construction or any structures. Under the city's policy, the tiff revenues are collected on a pay as you go basis, which means that the developer pays for the costs upfront and then receives the reimbursement as the things get built out. So that means as the project is built and developed, that creates the incentive. And so if there is no project or is no construction, that means there's no incentive to be received. The costbenefit analysis is required to be included in the project plan for TIFF. So, we'll just go over some of those numbers here. CBA estimates that approximately $28 million in net benefit to the city would be created by this project with over $27 million of that coming from sales tax revenues. Over the 20-year term of the TIFF, the city's portion of property taxes would contribute about $1.1 million, excuse me. And then it's also estimated that there could be 14 direct new jobs created at this location. So the other incentive being asked for here is a CID. CIDs have been around in Kansas since 2009 to help cities promote business activity and economic development. CIDs are designed to be a special sales tax on retail sales up to a 2% max for no longer than 22 years within a designated district. CDs can be used for a variety of things including vertical construction, infrastructure, parking, the land costs, etc. So, these are not sales taxes that already exist. They are an additional sales tax on the retail sales that are added to the designated district or property. So, basically, it's something that the land owner or the developer will choose to have imposed on their business to help reimburse for those eligible costs. Well, the city will still keep our own sales tax revenues. The developer for

this project is requesting the full 2% that is allowed by state statute. Just a bit more on the specific numbers for the CI. So there is a total project cost estimated at 11.8 million. Of this amount about $6.6 million would be eligible for CD reimbursement. However, the C is expected to generate about $2 million over the 22year term for that. And so that amount is created by the CD and so only that amount could go to reimbursement. So this is the calendar showing where we're at in the process. So as you can see there is a public hearing for both of these items. Um and so then you would be able to vote on the ordinances once those public hearings are complete. And these are the last stages in the process for both the TIFF and CD. So for financial consideration, like I mentioned, this is a total project investment cost estimated at about 11.8 million. Developer has also estimated that the annual retail sales of the truck stop would be $5 million and then $20 million in fuel sales. TIFF is estimated to generate about $4.5 million over the 20-year lifespan. about 4.7 million of that estimated to be eligible for reimbursement. So then as I also mentioned then the CD is estimated to generate about $2 million. So both the TIFF and C would be pay as you go. So those revenues could only be distributed to the developer as the project is developed and created create those revenues. So again, there are two items that will require separate actions both for the TIFF and the CD. So these will be the options for both. There are two public hearings for both. And then as I also mentioned last week, um but as a

reminder at this stage for TIFF, uh approval does require a twothird majority. So then these will be the actions requested on each item. Start first with the tiff.

On the on the tiff, we will open the public hearing at 4:31. I will open it up to any public who wishes to speak on the tiff for the public hearing. David Koshel, Hay City resident. Just want to keep this simple. This is a $12 million project being supported by a TIFF which redirects future property tax and a CI which adds extra sales tax for over 20 years. That means future revenue is being committed to this project and customers are paying more to help cover it. So the question is straightforward. Would this project happen without these incentives? Because if it would, then we're not creating growth. We're just giving up future revenue and making the deal better for the developer. And we're doing that while talking about tighter budgets and possible service cuts. If it truly needs the help, that's one thing. But if it doesn't, we shouldn't be offering it. Thank you. David,

would anyone else like to speak for the public hearing on the TIFF? Okay, see no more there. We will close the public hearing on the tiff at 4:32, which I need a motion for that. I'll move that we pass ordinance number 40. Oh, no. We need a motion to close. Sorry. I'll move that we close the public hearing. Second. Okay. Motion and a second to close the public hearing. All in favor say I. I. I. I. Okay. Passes 40 on closing the public hearing. Now we can move on to the next. I'll move that we pass ordinance number 4097 adopting the TIF project plan and approving the development agreement.

Second. Okay. Motion in a second. Questions or comments on the TIFF portion of this section?

Elena David. No. Yeah. I got a couple of questions here. I kind of talked with Jared earlier and uh for some of our incentives we actually have a little bit of a matrix where if they spend x number of dollars and they create so many jobs and they get a percentage of benefit but we don't have a matrix like that for the tiff or the I don't know Toby do you have any thoughts on that why we don't have a matrix for those two benefits

um you don't have a matrix so the matrix you're referring to is the um property tax abatement um for the um industrial development um and and that's tied back to you know creation of jobs things like that um you do have a metric in CID and it's based off of total investment and then I believe there's a 30% equity stake um by the developer in the in the project there's a total amount of investment in the project and an equity stake by the developer um but that is your only metric and I don't believe there's any metric in a tiff um overall and that's essentially just past practice of the um of the city commission. Um there is a but for um incentive um box in our in our application for economic incentives. So um it is stated by the incentive requesttor that but for the incentives being requested this project wouldn't be proceeding in the manner it did. Does that answer your question? Yes, it does. And I I've seen that in the application above four clause and I know several citizens had showed some concern for that and the developer is asserting that they would not be getting this benefit or if they didn't get this benefit, there's other cities that are offering the same benefit. So, they be able to take their business elsewhere. Um, when we give these estimates that over the life of this benefit, they're and get the 4.5 and the 2 respectively for the C, but they're actually eligible for more. If our estimates were off, does that mean they would actually get the additional benefit or does it stop when they hit our estimate?

It's um so it it stops when it hits either the time clock or the dollar estimate clock. Um so C is a good example. two years up to 2% or I'm sorry up to 2% for up to 22 years. Um so once a number is certified um if if sales are exceeded um and the certified number is hit a year or 16 it goes away at that point. Otherwise if only a million dollars is collected over 22 years then that's all that's collected and the C goes away or whatever the requested amount is.

Okay. So just for clarification, if let's say the economy just boomed like crazy and our estimate of two billion was actually really low and they actually brought in the full eligible amount of the you know 4 million 4.766 that was in their estimate. Did they get that full 4 million back? I believe so. The way the development agreement is written. Yes.

Yes. And I and I'll also say um those numbers do come from when the developer works with Gilmore and Bell on the city's bond council to um develop that based on what they think their business will do and based on what Gilmore Bell feels like um is realistic in the market and so on and so forth. So that's how those numbers come forward. It's not I want to not that you're implying that but it doesn't come out of a hat or anything like that. So,

right, I understand estimates are estimates and uh with us making this decision, I'm comfortable with the estimates we got being kind of a cap, but I'm not comfortable if the economy just booms, they get basically 100% reimbursement on everything because they would literally be just $400,000 shy of completely being saving what they spent on the budget if the economy booms, right? Well, at that point the the CI 30% equity cap would come into play, too. So, um overall there does have to be a 30% equity stake in order to to to comply with the C terms. So, there would be sort of an artificial cap that would kick in.

That's partly why we do pay as you go though too is because they have to invest the money themselves up front. Um and so then if you know we're go whatever that happens with the economy then that um incentivizes them to perform so that they even have the prospect of getting that money back because the economy does the opposite then they've invested that money and it's difficult for them to make that money back.

All right, that's all the questions I got on the tip.

Um I guess going off that I mean I do market research and stuff like this for my day job. So, I kind of have an idea of what the market does with thing with things like this. So, I mean, if you can get your store to generate around $7 million in retail sales alone, this is going to be a great economy. Um, I I think the estimates seem seem appropriate. Um, Gilmore Braille is they're pretty darn good at what they do um for providing those numbers. Um, so I mean I mean and that's I think I asked this last week and just for again for clarification it's on retail sales alone. It does not include fuel. Fuel is separate.

It's not taxable. Okay. For sales tax. Okay. So it has to be just internal in store purchases. That's correct. Yeah. Okay. Um I think someone else. Okay. Um, I'll call for a vote on this one. If there's no other discussion on the TIFF, all in favor of passing ordinance number 4097, please say I. I. I.

Opposed? Passes 40 on the TIFF. Next, we will have the public hearing for the CID for exit 157 247. I will open that public hearing at 4:40 p.m. Anybody wish to speak on the CD portion? Okay. Seeing none, I will uh call for a motion to close the public hearing. I'll move that we close the public hearing. Second. Motion and a second to close the public hearing. All in favor, please say I. I. I. I. Was that an I, David?

Yes, that was an I. Okay, perfect. Okay, opposed. Passes 40 to close the public hearing on that. And now we'll move on to the next section for C. I'll move that we pass ordinance number 4098 establishing the C and levying the two 2% C sales tax. Second. Okay.

Motion in a second. Questions or comments on this specific portion? I'll just say like I've said before, I'm excited for you guys to continue to invest in our community. You guys have uh you know ran a quality business here for many years and for you guys to expand and uh you know maybe soon after this you'll expand a little bit more into our community and uh I'm excited for it. Like I said before, I think just a little bit more development on that part of town. I think I think we may see even more after this and I'm excited for that. I think it's uh yes, there's a lot of incentives on it, but um you know, these are available to anybody within the state and u I don't think they're going above and beyond in my opinion.

David N. I would just agree that I'm very excited to finally see us be able to bring a business um specifically a truck stop to that area and I think that we're within our community. So, thank you again. Thank you,

David. One thing I want to talk about is transparency. Um, while I am okay with them taxing their customers to make up their their income, it's I got no problem with that because they either raise their prices and still pass on the buck to the end user or use the tax. Either way, as a business owner make up their their profits. But my concern is the transparency. It's you didn't know it was there. You would look at the shelf, see a dollar amount, and go check out and walk away like, "Oh, I paid extra here than what I would have paid somewhere else." I've seen some cities and communities where they're actually requiring businesses that have these kind of taxes post them on their doors or up at the register so that people know that there's going to be an extra 2% tax on top of those purchases. So, um I know it's not something that's going to be resolved today, but I would definitely like us to look into something like that in the future so we can be transparent for our citizens.

Um David, this is Toby. I will take a look at the uh department of revenue and see what the laws are around that. When you get into CIDs and other taxes, you know, special taxing jurisdiction, you you're subject a lot of times to revenues, rules, and regulations. But we'll reach out and see what the laws are and then let you guys know what what possibilities are available to you guys. Thank you.

Thank you, David. No, I'm I'm excited for this project. Um, obviously we've been talking about it for a long time. Um, so it's nice to see it kind of reach this finish line. Um, it's one of those things I think we've talked about before, you know, at every junction jumping in jumping the interstate and seeing, you know, some retail movement on that side. It could be the next big thing that spurs uh more growth and development in that area. Um, and I'm glad it's uh one of your guys' properties. Uh, I know traveling I like to stop at yours because I know it's going to be clean and fair. Uh, it's wonderful. Uh, and you and you guys give back to the community as well. You don't throw up a business and then ignore them. I mean, you actively give back to the community and uh, philanthropic ways. So, we appreciate your investment, not only business-wise, but into the community itself. Um, and and they said their new signs are legit. It's actually coming. You haven't seen their new signs?

No, I haven't. I'll I'll see you when I get on the first 2027. Okay. All right. Oh gosh. Okay. I'll call for a vote on the CD. All in favor, please say I I I opposed. Passes 40 on the C. Thank you. Thank you. Congratulations, guys. Thank you guys. You got six months. All right. All right. We'll move on to commission inquiries and comments. Uh David, you want to go first?

Uh along the lines of the economic development, uh I did notice that in a policy it says that it's to be reviewed every three years. Last time it was posted as effective date was 2021. So, I don't know if we reviewed that anytime recently, but maybe we should take a look at that as a commission and bring it up to date. Other than that, I got I think it was in a formal review, but we could we could stick it on a work session for discussion. Yeah, because I know we I know we definitely talked about that was one of the first things we talked about when I got on too. I don't think we changed it. Yeah, it's been discussed. I don't think it's been modified since the the 21 version.

Yeah, I don't Okay, awesome. Thank you, David. Um Elena. Um I don't have a lot tonight. Um I guess grateful that we got a small amount of rain even though I know we all wish it was more. And um yeah, just hope everyone has a good weekend. That's all.

Thank you. Thank you, John. Yeah, I just had a little rain and I think we might have some more coming. So let's uh let's pray for more. We definitely need it. And uh and we got I believe a baseball tournament in town this weekend. So hopefully we'll welcome those guys to town and hopefully the wind won't blow 80 miles hour so they can actually enjoy the games. But other than that, it should be a nice weekend. And he is American. Absolutely. Um I don't I don't think I really have anything. I I'm just excited to see the positive growth that we're having in the community. And Kim, department heads, staff, everybody. appreciate you guys for um being mindful and good stewards of our taxpayer dollars. So, thank you so much. Okay, executive session.

I would request the city commission not enter into executive session. I like that. Thank you. Then we will adjourn at 4:47. Thanks, David. Thanks, Elena.