Memorandum

City of Lawrence

Public Works

TO:	David L. Corliss, City Manager
FROM:	Chuck Soules, Director of Public Works
CC:	Diane Stoddard, Cynthia Wagner, Toni Wheeler, Scott McCullough
DATE:	September 24 2012
RE:	Farmland – City/Westar Agreement

In September 2010 the City of Lawrence acquired the former Farmland Industries nitrogen facility, an approximately 450-acre tract of ground on the east side of Lawrence.  More specifically, the site is located north of K-10 Highway and west of East Hills Business Park (2700 E. 23^rd Street – formerly 1608 N. 1400 Road).  The City intends to develop the property as a first class business park with municipal level services in place to allow for the timely sale/lease to businesses bringing jobs and tax base enhancement to the community.

Current Status:  The City contracted with Bartlett & West to master plan the site in February (2012).  The preliminary plat/rezoning was presented to the Planning Commission on September 24^th and will be presented to the City Commission in October. 

The City is also working with Bartlett & West for the design of the streets, water, and sewer.  These improvements are scheduled to begin in the spring/summer of 2013

Plans are near completion for the intersection of K-10 Highway/O’Connell Road including signalization.  This project will bid in the next few weeks.

For the City Commission consideration is the agreement between Westar and the City of Lawrence to move the substation north.  The entrance into the Farmland Business Park is a north/south road that lines up with O’Connell Road on the south side of K-10 Highway.  Westar has a substation near the front of the business park on the proposed alignment (photos attached).  The substation needs upgrading.  The City and Westar have agreed to the following major items:

o Westar will rebuild/relocate the substation

o Westar will move existing poles and lines for new infrastructure

o City will provide Westar a “substation tract” in fee

o City will provide necessary easements for transmission and distribution lines

There are many details outlined in the agreement.  In a nutshell, Westar holds current/existing easements.  Typically if the City makes a utility relocate from an easement that the utility holds, it would be at the City’s cost.  This project (relocation of the substation) and reconstruction of major transmission lines will cost several million dollars.  Westar has agreed to move the substation at no out of pocket cost to the City.

This project will take a couple years to complete.  The entrance road will have a temporary section to avoid the current substation.  Once Westar has completed their project, the City will make the permanent road improvements.

Action Request:  Authorize the City Manager to execute an agreement with Westar to relocate the substation on the Farmland property.