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:	April 6, 2012
RE:	Neighborhood Revitalization Area Agreement for 720 E. 9^th Street

Please place the following item on the City Commission agenda:

Authorize the City Manager to enter into an agreement with 720, LLC regarding the neighborhood revitalization project at 720 E. 9^th Street

Background:

In the spring of 2007, the City of Lawrence created a Neighborhood Revitalization Area (NRA) for several parcels in the area of 8^th & Pennsylvania.  A redevelopment project was envisioned involving a number of properties in this area.  Most of the improvements originally envisioned with this NRA never proceeded.  The redevelopment agreement for the entire redevelopment, with Cinco Hombres, LLC, is now defunct. 

However, one of the properties, 720 E. 9^th Street, was improved in accordance with the agreement and as envisioned with the NRA was established.  The original development plan and district called for improvements to this particular site, including grading, demolition and various parking improvements.  The total of this part of the project was estimated at $324,671.66.    The property owners of this property made the improvements and applied for a rebate in conjunction with the NRA program (see attached application.)  This NRA program area allowed for a 95% rebate on the incremental property taxes for a 20 year period, or up to the cap of the actual cost of the improvements.  Additionally, Douglas County retains 0.5% of the rebate amount as an administrative fee to process the rebate.  In 2008, the improvements were completed at an amount of $361,905.  Thus, the maximum cumulative rebate would be the cap amount $324,671.66.

Discussion:

Due to the original Cinco Hombres agreement now being defunct, staff has prepared a new agreement with the owners of the 720 E. 9^th Street property to cover the improvements at the property (see attached agreement.)  The agreement specifies the cap of the rebate and outlines the improvements completed.  Douglas County staff have calculated the rebate for 2011 to be $12,514.52.  This rebate amount has been transferred to the City of Lawrence per the 2007 NRA plan.  This amount will be released to 720, LLC. upon execution of the NRA agreement and will enable subsequent rebates in accordance with the agreement.

Requested Action:

Authorize the City Manager to execute an agreement with 720, LLC regarding the neighborhood revitalization project at 720 E. 9^th Street.