Memorandum

City of Lawrence

City Manager’s Office

 

TO:

David L. Corliss, City Manager

 

FROM:

Diane Stoddard, Assistant City Manager

 

 

Date:

 

CC:

 

August 20, 2012

 

Cynthia Wagner, Assistant City Manager

RE:

Resolution 6988 establishing public hearing date for south project redevelopment plan on 9th and New Hampshire Tax Increment Financing (TIF) District and Resolution 6990 calling a public hearing on the proposed Transportation Development District (TDD)

 

Please add the following item on the agenda for the August 28, 2012 City Commission Meeting:

 

Consider adopting Resolution No. 6988, establishing a public hearing date of October 2, 2012 for the South Project Plan for the Redevelopment Plan on the 9th and New Hampshire Tax Increment Finance (TIF) District and consider adopting Resolution No. 6990, establishing a public hearing date of October 2, 2012 on the proposed Transportation Development District (TDD) for the 9th and New Hampshire Redevelopment District

 

Background:

 

The City Commission established earlier this month the 9th and New Hampshire Redevelopment District (TIF District).  The next step in the process is consideration of the redevelopment plan.  As the Commission may recall, there are two project areas identified in the TIF district.  The south project area will be ahead of the north project area.  Therefore, the South Project Plan is ready to proceed.  The project plan for the north area will come forward in the future and will go through the same process of adoption as the south project plan. 

 

In addition to the TIF request, the developer has requested that a new 1% Transportation Development District sales tax be added to sales within the district.  This district is estimated to generate approximately $1.18 million over the maximum 22 year period.  The developers have submitted a petition requesting the TDD and setting the maximum collection at $3 million, though this amount is not expected to be generated.  Of the amount collected, the first $850,000 is proposed to be dedicated to the City toward repayment of the bonds issued by the City on the existing parking garage in the 900 block of New Hampshire. 

 

South Project Plan Summary:

 

The project plan sets forth the planned mixed use hotel project on the southeast corner of 9th and New Hampshire.  Both the property tax increment and sales tax increment will be captured on the new development, with the base taxes continuing to be distributed to the taxing jurisdictions. The developer will front all of the funds to proceed with the project.  The developer will then be reimbursed, over time, for costs associated with the underground parking garage, public improvements and infrastructure related to the construction of the mixed-use hotel building on the southeast corner of 9th and New Hampshire, to the extent that revenue is captured by the TIF to reimburse these costs. 

 

The plan also sets forth the possible Arts Commons project, which envisions the possible purchase of the Salvation Army tract for future Arts Center use.  The funds for this portion of the project would be fronted by the City and reimbursed with 5% of the annual captured TIF revenue from the district, plus any increment remaining after the developer’s costs are reimbursed, up to a total of $900,000. 

 

There are a number of steps related to the approval of the redevelopment plan.  The plan has been delivered to the School District and County and filed with the City Clerk.  Additionally, the plan has been reviewed by the Planning Commission on August 20, and found to be in conformance with the City’s comprehensive plan, Horizon 2020. 

 

The next steps are for the City Commission to consider a resolution setting a public hearing date for October 2, 2012 to consider the south project plan.  Additionally, the City Commission will hold a public hearing that same evening on the creation of a Transportation Development District.  Attached is the petition on the TDD district that has been received from the developers. 

 

Attached is the calendar showing future steps regarding the project. 

 

Action Requested: Consider adopting Resolution No. 6988 establishing a public hearing date on the south project redevelopment plan for October 2, 2012 and consider adopting Resolution No. 6990, establishing a public hearing date of October 2, 2012 on the proposed Transportation Development District (TDD).