Memorandum

City of Lawrence

City Manager’s Office

TO:	David L. Corliss, City Manager
FROM:	Diane Stoddard, Assistant City Manager
DATE:	October 18, 2013
CC:	Cynthia Wagner, Assistant City Manager
RE:	Consent to Assignment of 901 New Hampshire Agreement between Ninth and New Hampshire, LLC and Commerce Bank

Please place the following item on the consent agenda for Tuesday, October 23, 2013:

Authorize the Mayor to execute a consent to assignment agreement between Ninth and New Hampshire, LLC and Commerce Bank relating to the financing of the 901 New Hampshire apartment building project (existing apartment building on the southwest corner of 9^th & New Hampshire)

Background:

In 2000, the City of Lawrence entered into a development agreement regarding property located at the southwest corner of 9^th and New Hampshire with 9-10 LC (Martin Moore). The property did not develop immediately as originally envisioned. In 2012, the City Commission authorized an agreement which included the consent to assign the rights under the 2000 development from 9-10 LC to Ninth and New Hampshire, LLC, along with some incentives related to the construction of the new apartment building on that corner.

Request:

The apartment building has since been constructed at the southwest corner of 9^th & New Hampshire. The developer is now wishing to refinance the project. Under the terms of the original 2000 agreement, the developer is required to seek the consent of the City if the agreement is assigned to another party. In this case, the developer is assigning the agreement to Commerce Bank as part of the financing arrangement (collateral) on the apartment building. There is no financial impact on the City as a result of this consent.

Requested Action:

Authorize the Mayor to execute the consent to assignment agreement between Commerce Bank and Ninth and New Hampshire LLC regarding the development agreement for the 901 New Hampshire apartment building (existing apartment building on the southwest corner of 9^th & New Hampshire).