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:

 

June 14, 2012

RE:

Initial Steps to Consider Proposed Tax Increment Financing (TIF) District for the 9th and New Hampshire Project

 

Please place the following items on the June 19, 2012 City Commission agenda:

 

Consider the following items related to a request to establish a tax increment financing (TIF) district for proposed mixed-use projects on the southeast and northeast corners of 9th and New Hampshire:

          Consider adopting Resolution No. 6968 making a finding that the proposed redevelopment district lies within an Enterprise Zone, and consider adopting Resolution No. 6967 calling for a public hearing on the proposed redevelopment district for the project for July 24, 2012.

 

Background:

At the March 6, 2012 City Commission Meeting, the Commission approved a funding agreement to initiate the tax increment financing and transportation development district process for the proposed project at 900 New Hampshire. Additionally, the City Commission approved a contract with Springsted to complete the statutorily required feasibility study.  In late April, the City Commission received an updated request from the developer to consider a larger TIF district, to include the 900 New Hampshire parcel and also the parcel located at the northeast corner of the 9th and New Hampshire intersection.  Additionally, the developer is requesting a transportation development district be established to provide additional revenue for transportation-related improvements associated with the development proposal, and the use of industrial revenue bond financing. 

 

The developer has been working to process the 900 New Hampshire portion of the project through the Historic Resources Commission.  This process is the subject of another agenda item, anticipated to be discussed as part of the June 26 City Commission agenda. 

istoriHi

 

Discussion:

The current request from the developer envisions a multi-use development on both the southeast and northeast corners of the 9th and New Hampshire intersection.  The general project description for the proposal is: 

 

North Project Area

Planned mixed-use apartment and banking center with between 90 to 120 apartment units, and bank and apartment amenity space located on the first floor, underground parking, water line improvements along New Hampshire Street, and related public and private infrastructure.

 

South Project Area

Planned mixed-use 81 unit hotel with retail space and hotel lobby on the first floor, underground parking and related public and private infrastructure.

 

This area will also include a proposed project related to the Lawrence Arts Center, an Arts Commons space. This Arts Commons is intended to serve as a public arts space, managed and curated by the Arts Center, featuring a park-like setting and perhaps a built structure. This space would be located on the Salvation Army tract located directly south of the Arts Center.  The space could be a venue for public art exhibitions, theatrical productions, music, film and art-making activities.  The green space would also provide space for children attending the arts-based preschool and other educational programs the opportunity to work and play outside. The building, paid for and constructed by the Arts Center through a future capital campaign could help define the public green space and add classroom, preschool, studio and exhibition space.  The project includes funding for site acquisition and preparation.

 

The process to establish a TIF district and the other incentive items requested is lengthy.  There are many steps required in the process and many public meetings to discuss actions prior to a redevelopment district being formally established.  A draft project calendar outlines the timeline for establishment of the proposed tax increment finance (TIF) and transportation development districts (TDD) and demonstrates the process steps required. 

 

The action requested by the developer at this point in the process is to set the date for a public hearing on the proposed redevelopment district for the project on July 24, 2012.  This action also requires that the City Commission consider a resolution making a finding that the proposed redevelopment district lies within a previously-established Enterprise Zone, which it does.  These two items are very preliminary items that start the process.  Much more detailed information related to the request will be presented.  Three of the four reports that Springsted has completed related to the request are available on the City’s website. It is anticipated that the remaining report and full summary of the incentive request items will be available with the June 26, 2012 agenda materials. 

 

Action Requested:

Adopt Resolution No. 6968 making a finding that the proposed redevelopment district lies within an Enterprise Zone and adopt Resolution No. 6967 calling for a public hearing on the proposed redevelopment district for the 9th and  New Hampshire Project for July 24, 2012.