Memorandum

City of Lawrence

City Manager’s Office

TO:	David L. Corliss, City Manager
FROM:	Diane Stoddard, Assistant City Manager

Date: CC:	October 30, 2013 Cynthia Wagner, Assistant City Manager
RE:	Receive City of Baldwin City notification regarding Industrial Revenue Bond issuance for Freestate Broadband

Please add this item to the November 5, 2013 City Commission consent agenda:

Receive the City of Baldwin City notification regarding its intent to issue Industrial Revenue Bonds for Freestate Broadband to finance a project within Baldwin City, a portion of which traverses the City of Lawrence

Background:

The City of Lawrence is in receipt of correspondence from the City of Baldwin City regarding its intent to issue Industrial Revenue Bonds (IRBs) for Freestate Broadband in order to finance a project within Baldwin City, a portion of which traverses the City of Lawrence.

The City of Baldwin City is required to notify the City of Lawrence and Douglas County of this issuance due to a portion of the project being financed will go through Lawrence and rural Douglas County. The City of Lawrence is not required to approve the issuance, but rather indicate that it has received the notification and does not object to the bond issuance. If the City does object to the bond issuance, the City would need to transmit that to the City of Baldwin City within seven business days of the November 5, 2013 meeting.

The City of Lawrence would incur no risk regarding Baldwin City’s transaction and thus staff recommends that the City Commission simply receive the notification and take no further action.

In a related matter, staff is currently working with Freestate Broadband regarding an agreement authorizing the company to place its equipment through the City of Lawrence. This agreement will be considered by the City Commission in the near future.

Requested Action: