Memorandum

City of Lawrence

City Manager’s Office

TO:	David L. Corliss, City Manager
FROM:	Diane Stoddard, Assistant City Manager
CC:	Cynthia Wagner, Assistant City Manager
Date:	March 8, 2012
RE:	Consider funding agreement and action related to financial analysis for the proposed Marriot Town Place Project at 9^th & New Hampshire

Please place on the March 13, 2012 agenda, the following item:

Authorize the City Manager to execute a funding agreement with 900 New Hampshire, LLC to fund various costs related to financial analysis and bond counsel work for the proposed 9^th & New Hampshire hotel project and authorize the City Manager to enter into an agreement with Springsted Incorporated to complete the financial analysis on the proposed project.

Background:

The City of Lawrence has received an incentive request relating to the proposed hotel and mixed use project at 900 New Hampshire. In order to meet the statutory requirements for a proposed tax increment financing (TIF) district as well as other criteria in the City policies relating to TIF, transportation development district financing, and industrial revenue bonds at this location, financial analysis and legal assistance is required. The developer is required to fund these costs. The City has previously utilized Springsted Incorporated for the financial analysis services. They have significant experience analyzing these projects for cities and they performed the analysis related to the Oread Hotel project. Springsted estimates that the analysis related to this proposed project would cost approximately $17,500.

Staff has prepared a funding agreement with the developer of the proposed project requiring them to deposit $25,000 with the City of Lawrence from which Springsted and legal costs for bond counsel can be paid. The developer will be responsible for these costs with the City coordinating the services.

Requested Action: