MARC JACOBS
Hutch Post
The Reno County Commission took several major steps Wednesday to advance the proposed Salt Lick Golf and Hunting Resort east of Hutchinson, approving industrial revenue bonds (IRBs), creating a community improvement district (CID), and adopting project plans needed to move the development closer to receiving state STAR bond financing.
IRBs Approved Despite Concerns Over Tax Abatement
The commission voted 4-1 to approve industrial revenue bonds for Salt Lick LLC, with Commissioner Ron Vincent casting the lone dissenting vote.
County bond counsel Kevin Cowan of Gilmore & Bell explained the IRBs provide the project with a 10-year property tax abatement on the increase in assessed value created by the development. The only exception is the school district's capital outlay mill levy, which cannot legally be exempted. The property is located within the Buhler USD 313 school district.
Vincent questioned whether the county should grant a full property tax abatement.
"I thought we had discretion on the percentage," Vincent said, noting he believed the commission could choose a smaller tax break.
County Administrator Randy Partington confirmed the commission has that authority but said the project had been presented from the outset with a proposed 100% abatement.
Vincent argued Reno County should carefully weigh the financial impact.
"A break would be fine, but we're not a rich county," he said, comparing the project to homeowners who pay increased taxes after making improvements to their property.
Partington responded that homeowners making qualifying improvements can receive tax rebates through the county's Neighborhood Revitalization Program. Commissioner Richard Winger added that he had personally used the program when investing in improvements to his home.
Commission Creates Community Improvement District
Commissioners also unanimously approved establishing a Community Improvement District for the project.
Partington said the CID applies only to the Salt Lick property and will add an additional 2% sales tax on purchases made within the development.
Vincent asked how long the additional tax would remain in effect.
Cowan said the CID is expected to remain in place for up to 22 years.
Revenue generated by the additional sales tax will be used to reimburse the developer for eligible project costs.
STAR Bond plans move forward
The commission also unanimously adopted the project's STAR bond plans, another significant milestone for the development.
STAR bonds, or Sales Tax and Revenue bonds, are designed to finance tourism-related attractions. The bonds are repaid using the increase in state and local sales tax revenue generated within the STAR bond district after development.
Approval of the project plans advances Salt Lick LLC's request for approximately $26.2 million in STAR bond financing, with final approval resting with the State of Kansas.
Developers are targeting the opening of the first golf course during the 2027 golf season, while construction of the clubhouse is expected to continue into 2028.
If completed as planned, the project is expected to become one of the largest tourism and recreation developments in Reno County.