Memorandum

City of Lawrence

City Manager’s Office

TO:	David L. Corliss, City Manager
FROM:	Diane Stoddard, Assistant City Manager
DATE:	October 17, 2012
CC:	Cynthia Wagner, Assistant City Manager Britt Crum-Cano, Economic Development Coordinator
RE:	EMR Moving Expense Reimbursement

Please add the following on the agenda for the October 23, 2012 City Commission Meeting:

• Consider authorizing a reimbursement of up to $12,400 in moving expenses for EMR, Incorporated. 

Background:

In early September, the City was contacted by EMR, Inc., an environmental firm with its headquarters in Lawrence near the intersection of 31^st and Haskell.  EMR, Inc. was concerned about the upcoming construction near their location relating to the completion of K-10/South Lawrence Trafficway. EMR indicated that it was looking to move from this location, and was considering sites both inside and outside of Lawrence. City officials expressed our desire to keep the company in Lawrence and to assist them as we could in making the decision to stay here. 

The City arranged for a meeting between EMR and KDOT officials regarding construction timing and phasing as it related to their location.  Though the meeting provided EMR with additional information about the project, EMR indicated it still remained concerned about the construction impacts and indicated its intention to move its facility to another location. 

EMR, Inc. employs a total of 250 engineers and scientists worldwide.  Its headquarters supports around 24 administrative personnel and scientists.  A year ago, the company moved approximately 10 of its personnel to Overland Park.

EMR recently notified the City that it was in fact planning on staying in Lawrence and just signed a three-year lease for a facility located at 2110 Delaware.  The company plans on moving in December. 

Request:

EMR has requested assistance with its moving costs.  EMR estimates that its hard costs related to the move will be approximately $12,400.  These costs include costs of the movers, moving the business signage, reprinting stationary and business cards, and paying rent on two locations in December. 

City staff recommends assistance be provided in this manner to assist the company with keeping its operations in Lawrence. Staff would recommend a brief letter of agreement between the City and the company requiring the company to keep its headquarters in Lawrence for three years and would also suggest reimbursement of expenses up to the $12,400 upon the City receiving a receipt of actual expenses incurred.  Due to the relatively small amount of the request, staff did not complete a benefit-cost analysis on the request and does not suggest its review by the Public Incentive Review Committee. 

Action Requested:

Authorize reimbursement of up to $12,400 in actual moving expenses in order to retain EMR in Lawrence for a three-year period.