Memorandum

City of Lawrence

City Manager’s Office

DATE:	1/12/2012
TO:	David L. Corliss, City Manager
FROM:	Casey Toomay, Budget Manager
CC:	Cynthia Wagner, Assistant City Manager Diane Stoddard, Assistant City Manager Jonathan Douglass, Assistant to the City Manager / City Clerk
RE:	Theatre Lawrence Agreement

Please place the following item on the consent agenda for consideration of the City Commission at their meeting on January 17, 2012. 

Consider authorizing the City Manager to sign a letter agreement with Theatre Lawrence Inc., setting forth the terms for the City’s pledge of $100,000 for construction of a theater and education facility. 

Background

On September 6, 2011, the City Commission authorized a pledge of $100,000 to the Theatre Lawrence capital campaign.  The Commission authorized five annual installments of $20,000. 

Funding will come from the proceeds from the City’s transient guest tax in the City’s Guest Tax Fund and payment is subject to the Kansas cash basis law. 

As outlined in the attached agreement, the first payment will be made once a building permit has been obtained, which is anticipated to occur in 2012.  The second payment will be made once an occupancy permit is obtained.  The remaining payments will be made in annual installments of $20,000.

A preliminary plat has been submitted.  Once the plat and final development plan have been approved by the Planning Commission, a building permit may be issued.  Currently, a construction period of ten to twelve months is anticipated. 

Action Requested

Consider authorizing the City Manager to sign a letter agreement with Theatre Lawrence Inc., setting forth the terms for the City’s pledge of $100,000 for construction of a theater and education facility.