Memorandum

City of Lawrence

City Manager’s Office    

 

TO:

Mayor and City Commission

 

FROM:

City Manager David L. Corliss

 

Date:

June 14, 2012

 

RE:

Recreation Center Update

 

 

At your meeting on June 19, 2012 you will receive a brief update from Jana Dawson, Parks and Recreation Advisory Board member, concerning the public meeting conducted on June 6, 2012 on the recreation center.  Additionally, John Wilkins, with Gould Evans Architects, will provide a briefing on possible elements of a City operated Recreation Center.   He has provided the attached draft Recreation Center program.  This program needs additional refinement, including the continued involvement of staff and discussion with Parks Board members, the public, etc.    There are several updates provided below along with action item steps for the City Commission to consider as we move forward in our analysis of this project:

 

Property

As previously discussed, Duane and Steve Schwada have offered the donation of approximately 50 acres, plus supporting rights-of-way, on the tract at the northwest corner of West 6th and K-10.   The City Commission has annexed approximately 208 acres which includes substantial public rights-of-way and the remaining property owned by the Schwadas (annexation effective last week, June 4, 2012).   The Planning Commission has provided positive recommendations on rezoning, comprehensive plan amendment, and text amendment for this entire tract.  A protest petition has been filed concerning the rezoning.  Staff has conducted meetings with the property owners (most recently May 31, 2012) to discuss their concerns for the land use approvals and the proposed uses.  A preliminary plat has been submitted for the property. 

 

Recommended Action Item:    Direct staff to pursue a donation agreement with the Schwadas, which would include the timing of the gift.

 

Recreation Center

Thomas Fritzel has proposed to construct a recreation center on the property.   This would be integrated into a Sports Village which would include University of Kansas Athletics stadiums for track and field and also for soccer.  Pursuant to the provisions of the donation of the property, the City would own the underlying property.   The proposal from Fritzel is for the City to lease-purchase an approximate 165,000 square foot facility from Fritzel at the amount of $100,000 per month for 20 years (total amount of $24 million).  At the end of the 20 years, the City would completely own the facility.  This represents $1.2 million per year.   If the City debt financed this amount today, Ed Mullins, our Finance Director estimates that we would receive approximately $16.5 million in debt proceeds.   The recreation center project would include the outline of elements as linked above, approximately 800 paved parking spaces, landscaping and berms for appropriate transition to neighboring property.  A key issue in proceeding with this proposal is the development of detailed plans and specifications for the recreation center project.  Staff recommends that the City retain the Gould Evans architect firm for the project design, specification, and construction inspection.   This is the same firm that staff recommended for earlier recreation center work and the City has retained the firm for consulting work to-date on this concept.  Gould Evans is also working on the KU facilities planned for the adjacent property.    The City would not commit to proceeding with the lease-purchase until City Commission approval of the final design and specification of the facility and a cost estimate from the architect on its estimated cost.  Staff is also working on an operations budget for this facility, building on earlier estimates for the proposed 80,000 square foot facility.

 

Recommended Action Items: 

-Direct staff to work on a development agreement with Thomas Fritzel for the Recreation Center project elements, including a lease-purchase agreement.   Additionally, an agreement concerning the University of Kansas tenancy on the property will also be necessary.

 

-Direct staff to negotiate an agreement with Gould Evans architects for the design, specification, and construction inspection of the Recreation Center.  This will include supporting engineering services for civil site planning, MEP, structural etc.   The City will own and control the design and specification documents.

 

-Direct staff to continue to work on the design elements of the facility, including Parks and Recreation board members and members of the public.

 

Infrastructure

Staff has been working on the development of estimates for the necessary infrastructure to support this project and the property.  The necessary infrastructure includes:   improvements to Highway 40 (6th Street), including traffic signalization at a main north-south road aligning with the church entrance to the south;  a north-south road from 6th Street providing  main access to the property to be owned by the City;  a curb cut on improved 6th Street providing right-in/right-out access which will provide a secondary access to the site; improvements to the existing frontage road connecting to the interior road network; stormwater improvements, and water and sanitary sewer improvements to the site.  Staff has had successful meetings with representatives of KDOT on the Highway 40 improvements.  Staff believes additional engineering analysis is necessary to arrive at working estimates for the proposed infrastructure.  The property owners have conceptually agreed to the placement of an appropriate Transportation Development District (TDD) sales tax of 1% on the entire tract (City and Schwada ownership) the proceeds of which can be used to finance the above infrastructure.   Further development of infrastructure cost estimates and revenue estimates from a TDD are necessary.

 

Recommended Action Items:    Direct staff to negotiate necessary engineering services agreements for the infrastructure work for this project.   Staff will continue to further refine both infrastructure and TDD revenue estimates.   Staff has preliminarily engaged the services of Conventions Sports & Leisure International to provide economic impact data for this project, this information will be part of our TDD analysis as well.

 

Neighbor Meetings

Staff plans to continue with meetings with adjacent and other neighbors to the project.  With further definition on the various project elements, draft site plans and infrastructure plans can be reviewed and discussed with area property owners.  Along with a number of elements for the project, the final site plan for entire property (recreation center and KU facilities) will require City Commission approval.

 

Recommended Action Item:   Direct staff to continue with neighbor meetings on all project elements.

 

Summary

This project is a tremendous opportunity for the Lawrence community.   We have the opportunity to locate a sports village with a regional recreation center and University of Kansas athletics facilities at one of the gateways to our community.   All efforts are being made to ensure a high-quality project with attention to the City fiscal consequences.  The $1.2 million per year for the facility is the amount of money that was previously discussed for an 80,000 square foot project at the Overland Drive site.   The source is the City share of County sales tax which was devoted, in part, to parks and recreation facilities and operations.   We are mindful of potential infrastructure costs as well seeking additional partners:  KDOT and TDD sales tax.  We also want to examine the potential benefits to the community:  substantial recreation and athletics upgrades for Lawrence residents of all ages – and economic benefits from attracting regional and national tournaments and events at both the recreation center and KU facilities, plus the economic growth which can come from development on adjacent property.

 

Staff recommends that the Commission receive the briefings and public comment and authorize staff to proceed with the additional directions as outlined above.