City of Lawrence

Public Incentives Review Committee

May 14, 2013 minutes

 

MEMBERS PRESENT:

Dennis Highberger, Brad Burnside, Rob Chestnut, Mike Amyx, Mike Dever, Cindy Yulich, Shannon Kimball

 

MEMBERS ABSENT:

Mike Gaughan

 

STAFF PRESENT:

David L. Corliss, Diane Stoddard, Britt Crum-Cano

 

PUBLIC PRESENT:

Lisa Nielsen and Gene Uden, Neuvant House; Nancy Kelly, Amarr; Leslie Soden; Chris Piper, Grandstand Sportswear & Glassware, Chad Lawhorn

 

Mayor Dever called the meeting to order.

 

Yulich made motion to approve the March 5, 2013 meeting minutes, Highberger seconded.  Passed 6-0.

 

Crum-Cano briefed the group on the Neuvant House industrial revenue bond (IRB) request in order to access a sales tax exemption for the new construction on the project.  She reported that a property tax abatement is not being requested.  She reported that the project met the criteria outlined in the City’s IRB policy. 

 

Lisa Nielsen with Neuvant House provided a summary of the Neuvant West project, which is a 14,000 square foot facility that will tie in with a pedestrian walkway to the Neuvant East existing facility.  She reported that the goal was for the facility to be very home-like, but there is a strong medical support presence in the facility 24 hours per day.  She reported that they do have a waiting list. 

 

Highberger asked about energy efficiency in the facility.  She did indicate that the appliances were energy star rated and that the facility would be heated with radiant heat, which is more efficient.  Amyx asked about the new facility in comparison to the existing facility.  Nielsen indicated that they are person-centered care.  Amyx said he appreciated there being an opportunity for residents to receive services within the facility.  She mentioned that they really appreciate being in Lawrence. 

 

Yulich made a motion to approve the Neuvant House request as presented and to positively recommend it to the City Commission.  The motion was seconded by Kimball.  The motion was unanimously approved. 

 

Crum-Cano presented the 2012 annual economic development report.  She focused on streamlining the report this year.  There were only three outstanding tax abatements. 

There are also other incentives, such as industrial revenue bonds, tax increment financing districts, community improvement districts and neighborhood revitalization areas.  She reported that the capital investment is strong and that 152 jobs had been created by the companies receiving property tax abatements.  She reported that four neighborhood revitalization areas (NRAs) had been created.  She reported on the tax increment financing districts that had been created (TIF).  The Oread TIF has brought in over $1 million in increment to date.  There are three transportation development districts (TDDs).  Employee training incentives were provided to Argenta and Plastikon.  The City also supports the Chamber of Commerce economic development activities and the Bioscience Technology and Business Center (BTBC). 

 

There was a question about the EMR incentive.  Mr. Corliss indicated that this request had to do with assisting them with moving expenses to move within Lawrence and stay in Lawrence.  The company had looked at possibilities outside of Lawrence.  He also noted this was approved by the City Commission. 

 

Mr. Corliss stated that the City has followed a practice on NRAs to look at site-specific projects, rather than larger neighborhoods.  He reported as an example, Stan Hernly may be interested in purchasing the property at 11th & Rhode Island and staff discussed this tool as a possibility to fill a gap in that acquisition.  He also clarified that the NRA provided rebates on incremental property taxes back to the owner. 

 

Highberger commented that when the NRA is used as a site-specific tool, that it is basically like a TIF and was concerned about possibility of abuse.  He wanted consideration about using the NRA tool in a larger neighborhood area. 

 

Corliss stated that he appreciated the partnership with the school district and the county.  The county bears a large administrative burden with NRAs and TIF districts.

 

Kimball commented that the report had been greatly improved from several years ago. 

 

Amyx stated that there was a lot more detail in the report.  He asked Crum-Cano about the form that the firms had to complete.  Crum-Cano indicated that she had made a custom form that goes to the firm for them to complete.  Ms. Kelly from Amarr indicated that the reporting process is much more smooth than previously.  Chris Piper indicated that the only issue for them was the reporting period, which reflected 2011 employment and they now have over 80 employees.  Crum-Cano said that she would make a note on the report each year about that. 

 

Mayor Dever asked Chris Piper about whether there could be any improvements.  He said that Crum-Cano had been very helpful and the form was very to the point.  He said that he appreciated the city’s assistance and the opportunity Grandstand has been given.  Ms. Kelly also said that she appreciated having Crum-Cano’s help with the report.

 

Highberger made a motion to accept the annual economic development report.  The motion was seconded by Amyx.  Motion approved unanimously.

 

Burnside asked about Plastikon’s reporting numbers.  Stoddard stated that these numbers can be forwarded to PIRC at its next meeting. 

 

The meeting was adjourned at 3:17 pm.