January 9, 2001

 

The Board of Commissioners of the City of Lawrence met in regular session at 6:35 p.m., in the City Commission Chambers in City Hall with Mayor Henry presiding and members Dunfield, Hodges, Kennedy and Rundle present. 

Mayor Hodges and the City Commission recognized the "Friends of the Parks" for the Year 2000; the Solid Waste Division of the Public Works Department for the Parks and Recreation Teamwork Award; and, Faye Watson for her work with the Japanese Friendship Garden.  

As part of the consent agenda, it was moved by Rundle, seconded by Hodges, to approve the City Commission meeting minutes of January 2, 2001.  Motion carried unanimously.

As part of the consent agenda, it was moved by Rundle, seconded by Hodges, to approve claims in the amount of $813,686.35.  Motion carried unanimously.

As part of the consent agenda, it was moved by Rundle, seconded by Hodges, to approve the Drinking Establishment Licenses for Don's Steak House, 2176 East 23^rd; The Bourgeois Pig, 6 East 9^th Street; Rudy's Pizzeria, 704 Massachusetts (Contingent Upon State License); Astro's Inc., 601 Kasold, Suite C-107; Paisanos Ristorante, 2112 W. 25^th Street; Jet Lag, 610 Florida; Louise's West, 1307 West 7^th; the Retail Liquor License for Diane's Liquor, 1806 Massachusetts; and, the Cereal Malt Beverage License (On-Premise) for Dud's & Suds, 918 Mississippi (Contingent Upon Departmental Approval). Motion carried unanimously.

As part of the consent agenda, it was moved by Rundle, seconded by Hodges, to concur with the recommendation of the Mayor and appoint Nancy Hope to the Sister Cities Advisory Board; the reappointment of Gunter DeVries, Bob Ebey, and Bill Wachspress to the HAND Advisory Committee; the reappointment of Amy Lemert and Stacy Ezekwe to the Grant Review Board; and, the reappointment of Elizabeth Clark, Dan Sabatini, and William Carswell, along with the appointment of Marlene Merrill to the Lawrence Arts Commission.  Motion carried unanimously.

The City Commission reviewed the bids for irrigation and landscaping of the Indoor Aquatic Center.  The bids were:

            As part of the consent agenda, it was moved by Rundle, seconded by Hodges, to award the bid to Wolferts Landscape, in the amount of $61,000.00.  Motion carried unanimously.

            The City Commission reviewed the bids for Wastewater Treatment Digester Cleaner for the Utilities Department.  The bids were:

            As part of the consent agenda, it was moved by Rundle, seconded by Hodges, to award the contract to Nutri-ject Inc. for $.0387 cents per gallon of biosolids not to exceed $120,000.00.  Motion carried unanimously.

            As part of the consent agenda, it was moved by Rundle, seconded by Hodges, to approve the renewal of an existing contract with Nutri-ject Inc., for the removal of biosolids from the Wastewater Treatment Plant in the amount of $9.73 a cubic yard, not to exceed $128,000.00.  Motion carried unanimously.

            As part of the consent agenda, it was moved by Rundle, seconded by Hodges, to approve the purchase from the sole source of Nalcolyte 8186 polymer, a Water Treatment Chemical, from Nalco Chemical Company for $35,700.00.  Motion carried unanimously.

            As part of the consent agenda, it was moved by Rundle, seconded by Hodges, to place on first reading Ordinance No. 7314, rezoning [Z-01-01-00] approximately 8.719 acres from RO-2 (Residence-Office District) to PRD-2 (Planned Residential Development), located southwest of Clinton Parkway and Kasold Drive, west of the medical buildings.  Motion carried unanimously.                                                                                                                                        (1)

As part of the consent agenda, it was moved by Rundle, seconded by Hodges, to place on first reading Ordinance No. 7315, rezoning [Z-09-40-00] approximately 11.75 acres from R-1 (County Single-Family Residence District) to RS-2 (City Single-Family Residence District), located west of Monterey Way and north of Stetson Drive.  Motion carried unanimously.                                                                                                                                               (2)

As part of the consent agenda, it was moved by Rundle, seconded by Hodges, to place on first reading Ordinance No. 7316, rezoning [Z-09-42-00] approximately 6,116 sq. ft. from M-1 (Research Industrial District) to RO-2 (Residence-Office District), located at 944 E. 19^th Street.  Motion carried unanimously.                                                                                       (3)

Ordinance No. 7312, annexing approximately 0.0061 acre tract, which was inadvertently omitted from an earlier annexation (Ordinance No. 7276), was read a second time.                          As part of the consent agenda, it was moved by Rundle, seconded by Hodges, to adopt the ordinance.  Aye:  Dunfield, Henry, Hodges, Kennedy, and Rundle.   Nay: None.  Motion carried unanimously.                                                                                                                 (4)            Rundle informed the City Commission that he was going to abstain from the discussion and vote on the site plan for Community Mercantile located at 901 Iowa because of a potential conflict of interest.

Kyle Mieras, Planner, presented the staff report for the site plan for Community Mercantile Co-Op located at 901 Iowa.  Staff was recommending approval of the site plan with the removal of the entrance to Iowa Street which the City Traffic Engineer and KDOT recommended.  The driveway’s proximity to 9^th Street intersection did not meet KDOT’s spacing requirements for access management.  The site has two (2) other driveways on 9^th Street and there was an entrance into the Hillcrest Center to the south of this property line.  Staff recommended a Cross Access Agreement across the site to the property to the south.  The Board of Zoning Appeals approved several variances for the site.

Sharon Elkins, the property owner, said the area known as the Hillcrest Shopping Center was actually owned by two (2) separate property owners.  The property owners had an informal agreement to cross each other’s property and a formal Cross Access Agreement was not necessary.  Too may hurdles were being put in place to allow a community owned store to locate on her property.  She opposed closing the entrance to her property on Iowa. 

David Barkley, representing the applicant, requested elimination of the condition for closing the access to Iowa.  The reasons were: no significant number of accidents at location; it would not improve the traffic flow of the site; other grocery stores had more accesses than this site; and, smaller businesses on Iowa Street had two (2) accesses.  Access was important for the Community Mercantile to both serve the community and for it to be successful.

Eric Williams, representing the applicant, requested the elimination of the Cross Assess Agreement across their property.  The owner to the south of this property did not have any requirement to negotiate with Community Mercantile for a Cross Access Easement.  This was an unfair burden on the Community Mercantile.

Hodges said the Cross Access Agreement did not apply to the property owner on the south.

Linda Finger, Planning Director, said “yes” the Cross Access Agreement was only on this property.

Barkley said with that condition there would be benefit to the property owner to the south without any benefit to the Co-Op.  The easement would be difficult to enforce by the Community Mercantile.  There was no sense for the Mercantile to give up something for nothing in return.

Michael Almon, 1311 Prairie, said the access to Iowa was a difficult decision for the City Commission.  He supported the access because of the importance for the Community Mercantile to be successful.  The access appeared not to cause any particular problems.  Almon suggested if the access was to be closed, it should be paid for by KDOT.  He thought it was unfair for the Community Mercantile to loose access and have to pay for it.

Henry supported keeping the entrance to Iowa because the site had been for a grocery store and saw no change in the use.  He observed this entrance had not caused problems in the past.

Hodges supported access to Iowa and the Cross Access Agreement.  He said it was important to get the Cross Access Agreement at this time.

Kennedy suggested modifying the access on Iowa to be right-in and right-out onto Iowa.

Dunfield asked if it was possible to formalize a right turn in and out at this location.

Finger said that was a safety issue.  Based upon past experiences, a right-in and right-out would not work without a median on Iowa.  If the City Commission approved the entrance on Iowa, she requested the City Commission prohibit the use of temporary sales from the intersection of Iowa to the entrance.

The City Commission concurred.

   Moved by Hodges, seconded by Kennedy, to approve the site plan (SP-12-81-00) for Community Mercantile Co-Op to be located in the former Alvin's IGA building at 901 Iowa Street, subject to the following conditions:

1.                  Provide a revised Site Plan depicting the following:      

a.                  No temporary sales allowed on the site from the Intersection of Iowa and 9^th Street to the entrance on Iowa;

b.                  Provide a minimum of 4 accessible parking spaces;

c.                  Identify parking groups (11 and 12), required spaces (86) and provided parking spaces (82) under General Notes;

d.                  Label greenspace in front of building as being landscaped;

2.                  Provide cross access easement for property located to the south and label on Site Plan; and,

3.                  Provision of a Site Plan Performance Agreement.

Aye:  Henry, Dunfield, Hodges and Kennedy.  Nay:  None.  Abstain: Rundle.  Motion carried.   (5)

As part of the consent agenda, it was moved by Rundle, seconded by Hodges, to authorize the Mayor to sign a Release of Mortgage for Helen Shepard, 878 Elm Street.  Motion carried unanimously.                                                                                                                           (6)

John Craft, owner of the property at 1515 East 11^th Street, requested approval of an Agreement to Plat.  This property was in the City, zoned for residential uses, but had not been platted.  Craft said before a building permit could be issued for rehabilitation of the house, the property must either be platted or an Agreement to Plat must be obtained.  He had begun the process for platting on the property.  He was seeking a building permit to allow for repair of the building which would be used as his residence.

Hodges said the agreement allowed for the plat to be completed within one hundred twenty (120) days and asked if the work would be completed within that time.

Craft said he hoped to have the work completed and be in the house by that time.

Rundle asked if a plat had been presented.

Finger said she did not know if the plat was presented to staff.

Rundle suggested deferring this item for one (1) week to have staff preliminarily review the site and plat.

Moved by Henry, seconded by Kennedy, to defer for one (1) week the request for an Agreement to Plat for property located at 1515 East 11^th.  Motion carried unanimously.            (7)

Mayor Henry called a public hearing on the proposed vacation of right-of-way at 28^th Street in the Lawrence Industrial Park.

George Williams, Public Works Director, presented the staff report which recommended approval of the vacation with retention of the easements.

Beverly Culvert, a property of 2727 Oregon, asked if a cul-de-sac was planned for 28^th Street and how would access be granted across the existing bike path. 

Williams said if access was required to lots nineteen (19) and ten (10), the property owner would be required to build 28^th Street and provide appropriate access for people using the bike/walkway.

Mike Wildgen, City Manager, said in the development of the sites, Planning Staff would need to review the Site Plan and would require appropriate access for the bike and pedestrian way.

Moved by Kennedy, seconded by Rundle, to close the public hearing.  Motion carried unanimously.                                                  

Moved by Kennedy, seconded by Hodges, to approve the Order of Vacation on the proposed vacation of right-of-way at 28^th Street in the Lawrence Industrial Park and authorize the Mayor to sign the vacation order.  Motion carried unanimously.                                             (8)

Mayor Henry called a public hearing on the unsafe and dangerous structure at 1600 West 4^th Street.

Jim Sherman, Building Inspector, presented the staff report which recommended the City Commission direct staff to prepare a Resolution to repair or demolish the structure at 1600 West 4^th Street.  There were severe structural problems which were intensified by the recent snow and ice storms.  Based upon the structures condition, it was impossible to secure the building without significant structural repairs.  

Moved by Hodges, seconded by Dunfield, to close the public hearing.  Motion carried unanimously.                                                  

            Moved by Hodges, seconded by Henry, to direct staff to prepare the appropriate Resolution for the repair or demolition of the dangerous and unsafe structure at 1600 West 4^th.  Motion carried unanimously.                                                                                                                       (9)

Mike Wildgen, City Manager, said staff would review the situation and if an emergency were needed, staff would take the appropriate action.  

Mayor Henry called a public hearing on the request for issuance of Industrial Revenue Bonds and Tax Abatement from DST Realty, Inc.

Debi Moore, Lawrence Chamber of Commerce, presented the history of working with DST Realty for purchase of the former Sallie Mae site.  DST Realty began their review of Lawrence for expansion over a year and a half ago.  Lawrence was not considered a finalist site until the Sallie Mae Facility became available.  At that time, DST Realty, Sallie Mae and the Chamber began discussions on the use of the Sallie Mae site by DST Realty.  Moore said the request was for the issuance of Industrial Revenue Bonds not to exceed $9,000,000.00 and In-Leu Agreements to maintain the property taxes on the existing building at the Year 2001 rate for five (5) years; a fifty percent (50%) abatement on any new improvements and/or new personal property; and, one hundred percent (100%) abatement on personal property acquired at from the present owner which was presently exempt from taxation.

Tom McGee, DST Realty, expressed appreciation for the opportunity to work with both the City and Chamber of Commerce Staff.  He said this situation was a win-win situation.  It was positive for DST Realty, the City of Lawrence, Sallie Mae and Sallie Mae former employees.

Pam Tracy, Human Resources Manager, DST Realty, said DST already employed one hundred and six (106) former Sallie Mae employees who have been receiving training in Kansas City.  Another sixty (60) employees would start sometime within the next several weeks and would begin training at the current site.  DST was offering similar wages and benefits to the Sallie Mae former employees.  These employees would be responsible for Mutual Fund Transaction Processing.  DST was not a collection type of business and the jobs would be more challenging for the former Sallie Mae employees.  DST  offered its employees one hundred percent (100%) tuition reimbursement and in this particular case was offering the Sallie Mae employees seniority and tenure they acquired as Sallie Mae employees.

Trudy Haskins, DST Realty, a former person from Sallie Mae Human Resources, said fifty percent (50%) of the former Sallie Mae employees hired by DST  received raises.  Many of these employees would have left the Lawrence labor market if it was not for this project.  In addition, employees who were laid off several years ago by Sallie Mae, have contacted DST for possible employment.

Rundle asked if DST would be paying sales tax on the expansion portion of the project. 

Kim Wells, Gilmore and Bell, said that the project would be eligible for the sales tax exemption.

Rundle asked what the impact on the bottom line of DST would be for every one hundred dollars ($100.00) of tax abatement.

McGee said he did not know that answer.

Rundle asked if it bothered DST that this project would have a negative impact on the School District. 

McGee said he thought the job opportunities brought to the community would outweigh the negative impact on the School District.

Rundle asked how DST Realty found out about the tax abatement process.

McGee said early on in the process before Lawrence was seriously being considered, that issue was raised by DST Realty.  Those were considerations for all communities in which they were interested.

Rundle asked if DST Realty would locate at that site if the tax abatement were not approved.

McGee said “no”.

Steven Maynard Moody, University of Kansas, said the cost-benefit model showed relatively small benefit to the community because the building was an existing building.  On the question of impact on schools, the model estimated cost of $5,000.00 per child.  If that were reduced to $3,000.00, the impact would be significantly reduced.  Moody said that cost figure was extremely difficult to ascertain and, therefore it was important to look at various levels of cost to see the impact.  Moody suggested the potential loss of jobs was also important, but was not reflected in the model. 

Melinda Henderson said she did not think the abatement followed the City’s policy.  She quoted the section of the policy saying that only new, real and personal property that was not on the tax rolls would be abated except for properties that were vacant for a considerable period of time.  This property has not been vacant for any significant period of time.  In addition, the Sallie Mae real property has been on the tax rolls.  The personal property has not been on the tax rolls, but was not new.  She did not think it was appropriate to abate the personal property.  Henderson said the Lawrence community had a lot to offer DST Realty including the site and the former workers at Sallie Mae.

David Holyrod, 1229 Louisiana, said over 2,000 property owners in Lawrence were delinquent on personal property taxes.  The largest delinquent property owner was Oread Laboratories.  He thought any company locating in Lawrence should pay its fair share of taxes.  He suggested DST should reconsider their request and pay their full amount.

John Mansfield said the company was acting as if they had already received the abatement.  They hired former Sallie Mae employees and were using that site prior to approval of the City Commission.  He opposed that concept.

Shirley Martin Smith supported the tax abatement.  Sallie Mae was a special employer within the community and provided a significant amount of quality jobs.  She said it was to the City’s benefit to have DST Realty locate at that facility.  She spoke in support of the abatement and thanked the staff of Sallie Mae for the way in which they handled the proposed sale.

Rundle asked the total abatement for the property.

Luke Middleton, University of Kansas, said the total abatement over a ten (10) year period at present value was about $210,000.00. 

Rundle suggested DST negotiate a lower price for the property which would be an up-front savings to the company.  He thought the proposed abatement would be in conflict with the City’s existing policy.

   Moved by Rundle, seconded by Hodges, to close the public hearing.  Motion carried unanimously.                                                 

Dunfield said he was troubled with the fact the abatement request appeared to be in conflict with the City’s policy.

Henry supported the tax abatement request.  The existing property would remain on the tax rolls and only future increases in taxes would be abated.  He felt comfortable with the proposal.

Hodges supported the project because of the job retention and DST was a good employer.

Rundle said this request did not follow the policy and the benefit-cost ratio did not meet the City’s initial threshold.  He did not support tax abatements in general and in this particular instance could not support the request.  Rundle said Lawrence did not need tax abatements to be competitive and sited Overland Park, Kansas and Columbia, Missouri as communities that did not use abatements which were successful.

    Dunfield suggested the policy needed to be reviewed in the very near future.  It was obvious the new real property and personal property should be abated.  He had concern about abating   the existing real and personal property.  Dunfield suggested modifying the Resolution of Intent to reflect In-Leu Agreements for the property owner to pay the full tax rate for all real property and improvements to the existing building and fifty percent (50%) on the personal property acquired from Sallie Mae.  He recommended a fifty percent (50%) abatement on new improvements and equipment.

Moved by Dunfield, seconded by Rundle, to adopt Resolution No. 6265, a Resolution of Intent to issue Industrial Revenue Bonds not to exceed $9,000,000.00 with the amendments to eliminate Section 6(b) (1) and section 6(3) showing a fifty percent (50%) abatement on personal property acquired from the present owner.  Aye:  Dunfield and Rundle.  Nay: Henry, Hodges and Kennedy.  Motion failed.

Moved by Kennedy, seconded by Hodges, to adopt Resolution No. 6265, a Resolution of Intent to issue Industrial Revenue Bonds not to exceed $9,000,000.00 including In-Leu Agreements to allow for the payment of an amount on the existing real property, building and improvements equal to the taxes paid in the Year 2001 for five (5) years; One hundred percent (100%) abatement on the personal property acquired from the present owner of the real estate on the project site including all machinery and equipment for five (5) years; and, a fifty percent (50%) abatement for ten (10) years on all new real property improvements and machinery and equipment purchased as part of the project.  Aye:  Henry, Hodges and Kennedy.  Nay:  Dunfield and Rundle.  Motion carried.                                                                                                                (10)

Minutes concerning DST Amended (Footnote 10) – See January 16, 2001 City Commission Meeting Minutes)

            Henry said he would be appointing a committee to review the tax abatement policy during his term as Mayor.

            David Corliss, Assistant City Manager, presented the staff report on the proposed annexation of property north and south of West 6^th Street, from Wakarusa to K-10.  The City Commission directed staff to explore the possibility of annexation along the Sixth Street Corridor as a means for financing twenty percent (20%) of the cost.  Corliss explained the various financing mechanisms for the project.  He reviewed a map of the property ownerships for the area.  If the City Commission felt that annexation of this Corridor was appropriate, City staff would prepare a service plan as required by K.S.A. 12-521.  The next step would be the City Commission presenting a petition to the County Commission requesting a public hearing before the County Commission on the advisability of the annexation.  The Comprehensive Service Extension Plan would be presented at this time.  After petitioning the County Commission, the County Commission would set a public hearing not less than sixty (60) nor more than seventy (70) days from presentation of the petition.  A certified mailing would be sent to all property owners.  After the County Commission conducted the public hearing, specific findings must be made in writing.  This decision must be made within seven (7) days of adjourning the hearing.  A majority vote of the County Commission granting authority for the City to annex the property was required.  If that order was affirmative, the City Commission would adopt an Ordinance annexing the property.

            Corliss reviewed sections of Horizon 2020 recommending a proactive annexation policy.  Corliss said the area being discussed was in the identified growth areas of the City.

            Rundle asked the components of a service plan.

            Corliss said the service plan included analyzing the use of the property, demographics of the area, tax consequences, cost of providing governmental services and timing of those services.

            Rundle asked it the City was sending a signal to the property owners that this area should be developed.

            Corliss said this action does not force development, but indicated the City expected this area to be urbanized.  Timing of infrastructure improvements was still important in meeting developmental needs.

            Hodges asked the timeline for completion of the improvements.

            Mike Wildgen, City Manager, said it appeared that a 2004 completion date for all the improvements would be realistic.

            Corliss said some of the services would be provided immediately such as police and fire and sanitation services.

            Rundle asked if the Planning Commission would review this annexation.

            Corliss said State Law did not require the Planning Commission to be involved with this process.  However, staff recommended that this issue go to the Planning Commission for their review. 

            Rundle asked what rights the property owners have in this process.

            Corliss said the decision would be made by the County Commission and input to their elected officials was their method of being heard on this matter.

            Pam Chaffee, a property owner in the area, expressed an appreciation for information provided by staff and said she and her neighbors would continue to be actively involved in this process.

            Moved by Kennedy, seconded by Dunfield, to direct staff to prepare a Comprehensive Service Plan for the proposed annexation of property north and south of West 6^th Street, from Wakarusa to K-10 Ordinance.  Motion carried unanimously.                                            (11)

            Moved by Rundle, seconded by Hodges, to extend the meeting for thirty (30) minutes.  Motion carried unanimously.

            George Williams, Public Works Director, said staff did not have a proposal for the contract for 31^st Street Study with Transystems.  Staff from the City and County were working with Transystems to develop the contract and cost.

            Linda Finger, Planning Director, presented the recommendation for hiring a consultant for Transportation 2020 update.  A request for proposals was sent out last year and five (5) responses were submitted to the request.  One (1) firm withdrew from the process and four (4) firms were interviewed.  Staff was recommending LSA Associates as the consultant to update the plan.  Finger requested the City Commission authorize the City Manager to enter into negotiations with LSA for a contract to update Transportation 2020.

            Moved by Kennedy, seconded by Rundle, to authorize the City Manager to enter into an agreement with LSA for a contract to update Transportation 2020.  Motion carried unanimously.                                                                                                                                   (12)

            Kennedy asked staff to review the possibility of a standardizing newspaper distribution devises for the Downtown area.

Rundle suggested the review of using a consultant for Federal Grant Tracking Services.    

   (13)

            Moved by Kennedy, seconded by Rundle, to adjourn at 10:05 p.m.   Motion carried unanimously.                                                                     

 

APPROVED:

                                                                        _____________________________

James R. Henry, Mayor

ATTEST:

 

___________________________________                                                                       

Raymond J. Hummert, City Clerk

COMMISSION MEETING JANUARY 9, 2001

1.                  Ordinance No. 7314 -- 1^st Reading, Rezone 8.719 acres, RO-2 to PRD-2, SW of Clinton Pkwy and Kasold, W of medical bldgs.

2.                  Ordinance No. 7315 -- 1^st Reading, Rezone 11.75 acres, R-1 to RS-2, W of Monterey Way and N of Stetson.           

3.                  Ordinance No. 7316 -- 1^st Reading, Rezone 6,116 sq. ft., M-1 to RO-2, 944 E 19^th.

4.                  Ordinance No. 7312 -- 2^nd Reading, Annex 0.0061 acre, inadvertently omitted from an earlier annexation (Ordinance No. 7276).

5.                  Site Plan – (SP-12-81-00), Community Mercantile Co-Op, former Alvin's IGA Bldg, 901 Iowa St.

6.                  Mortgage Release - Helen Shepard, 878 Elm Street.

7.                  Agreement to Plat, Defer 1 wk, 1515 E 11th

8.                  Vacation - 28^th St., Lawrence Industrial Park.

9.                  Unsafe and dangerous structure - 1600 W. 4^th St.

10.              Resolution No. 6265 - DST Realty, IRB/Tax Abatement, not to exceed $9,000,000. (Minutes Amended – See January 16, 2001 City Commission Meeting Minutes)

11.              Annex - N & S. of W 6^th, from Wakarusa to K-10.

12.              31^st Street Study - TranSystem.

13.              Long-range transportation plan – select consultant.