Memorandum

City of Lawrence

City Manager’s Office

 

TO:

David L. Corliss, City Manager

 

FROM:

Diane Stoddard, Assistant City Manager

Britt Crum-Cano, Economic Development Coordinator

 

 

Date:

 

CC:

 

February 19, 2013

 

Cynthia Wagner, Assistant City Manager

RE:

Rock Chalk Park Project- Estimated Property Tax Abatement and Sales Tax Exemption Value

 

Leading up to this evening’s City Commission item related to the Rock Chalk Park project, there have been some questions regarding the request to exempt the KU facilities from property taxes for a 10-year period, and provide a sales tax exemption for the materials used in the construction of the KU facilities, in conjunction with the City’s issuance of Industrial Revenue Bond (IRB) financing.  A previous memo outlined more details regarding the requested IRB financing.   

 

The Public Incentive Review Committee will be meeting on February 26, 2013 to consider a recommendation to the City Commission regarding the requested property tax abatement.  It is important to note that the structure of the construction of the KU facilities is the reason for this request, because if the facilities were constructed by the University, the facilities would be automatically exempt from property tax and sales taxes related to the construction materials. 

Staff has prepared a memo and materials relating to the property tax abatement request.  In summary, the memo indicates the following related to the value of the property tax abatement and the sales tax exemption on materials used in construction of the KU facilities:

 

 

 

It is important to again note that this information only relates to the KU portion of the project.  The proposed City portion would automatically receive a property tax exemption and a sales tax exemption on the construction materials, if the City proceeds.