Memorandum
City of Lawrence
City Manager’s Office
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TO: |
David L. Corliss, City Manager;
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FROM: |
Diane Stoddard, Assistant City Manager
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CC: |
Cynthia Wagner, Assistant City Manager Britt Crum-Cano, Economic Development Coordinator
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Date:
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June 20, 2012 |
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RE: |
Proposal from Tony Krsnich to Establish a Neighborhood Revitalization Area at 810/812 Pennsylvania (the Cider Building) |
Please place the following item on the June 26 City Commission agenda:
Hold a public hearing on the establishment of a Neighborhood Revitalization Area (NRA) at 810/812 Pennsylvania (the Cider Building). After the public hearing, consider first reading of an ordinance establishing the revitalization area, approve the NRA plan, and authorize staff to finalize and the Mayor to execute a city-county-school district cooperation agreement concerning the administration of the NRA plan.
The City is in receipt of a request from Tony Krsnich to establish a neighborhood revitalization area at 810/812 Pennsylvania, a building known as the Cider Building. This request was received by the City Commission at its June 12, 2012 meeting. Mr. Krsnich has requested that his item be expedited to allow for the creation of the district as soon as possible as to enable construction crews currently at the Poehler building site to continue to remain mobilized in the area. Remobilization will require additional unanticipated expense for the project.
Background:
Kansas Law enables cities to establish neighborhood revitalization areas in order to encourage redevelopment under the Neighborhood Revitalization Act (NRA). The establishment of a revitalization area enables a property owner to receive a rebate on a portion of the incremental increase of property taxes associated with an improvement project within the area.
Tony Krsnich plans to restore the Cider building. Plans include developing an arts gallery on the lower level that can host events, and the upper level will be converted into offices for entrepreneurs. Mr. Krsnich is requesting a 10 year 95% rebate on the incremental tax revenues. He is requesting that the City, Douglas County and USD 497 all participate in the revitalization program.
Benefit Cost Analysis
Britt Crum-Cano, the City’s Economic Development Coordinator, has completed an analysis of the proposal, in accordance with the City’s NRA policy. The policy requires completion of a benefit-cost ratio calculation. Her analysis indicates that the project would meet the required benefit-cost ratio threshold for all of the taxing jurisdictions.
Draft Neighborhood Revitalization Plan
Staff has prepared a draft Neighborhood Revitalization Plan, which is required by State statute, which mirrors the Mr. Krsnich’s request. This plan should be reviewed by the City Commission, the Public Incentive Review Committee, and the taxing jurisdictions. The plan includes the rebate schedule referenced earlier in this memo. The plan also includes provisions for Douglas County to retain $100 annually as an administrative fee for the duration of the rebate program.
Next Steps/Calendar
A draft calendar has been prepared to consider items related to this request.
The Public Incentive Review Committee considered the request at its June 19 meeting. The PIRC made a unanimous recommendation to proceed with the request. The County Commission considered participation at its meeting on June 20. The County Commission authorized its participation, contingent upon the City’s participation and approval of the district. The School Board is scheduled to consider its participation at its June 25 meeting.
NRA Policy
The City of Lawrence adopted an updated NRA policy in the fall of 2011. Ms. Crum-Cano’s memo summarizes the policy issues as it relates to this particular NRA request. It appears that the request would meet the parameters of the policy and based upon the analysis and projections provided by Mr. Krsnich, the project could qualify for the 95% rebate level he is requesting.
Requested Action
The City Commission should open a public hearing. Following the public hearing, the City Commission should consider first reading of an ordinance establishing the Cider Building NRA district and authorize staff to finalize and the Mayor to execute an agreement between the City, County and School District to administer the NRA.