Memorandum

City of Lawrence

City Manager’s Office

 

TO:

David L. Corliss, City Manager

CC:

Diane Stoddard, Assistant City Manger

Casey Toomay, Assistant City Manger

FROM:

Britt Crum-Cano, Economic Development Coordinator

DATE:

August 5, 2014

RE:

HERE Kansas request for 1101/1115 Indiana Street

 

Please see List of Attachments at the end of this memo.

 

The City, County, and School District have received and considered the request from HERE Enterprises/Kansas LLC, for public assistance related to the property at 1101/1115 Indiana Street.  Specifically, the company requested:

 

·         Industrial Revenue Bonds (IRB) in order to receive a sales tax exemption on project construction materials.

 

·         The participation of the City, County, and School District in a 12-year, 95% NRA rebate of the incremental real property tax revenues generated by the property.

 

This request was received by the City Commission at its June 17, 2014 meeting and was referred to the Public Incentives Review Committee for review and recommendation.

 

PIRC Recommendation

At the 6-24-2014 PIRC meeting, the committee indicated general support for the project, but was undecided on the rebate percentage and duration for an NRA.

 

Draft minutes of the June 24, 2014 PIRC meeting are attached at the end of this memo.

 

City Commission Actions

At the 7-8-2014 City Commission meeting, the Commission considered the request and authorized establishment of a 10-year, 85% NRA on a vote of 3-2 and also authorized issuance of Industrial Revenue Bond (IRB) financing for the project.

 

School Board Actions

On July 28th, USD 497 School Board considered participation in the NRA and approved participation in a 10 year 85% NRA on a vote of 6-1. 

 

County Commission Actions

On July 30th, the Douglas County Commission considered participation in the NRA and approved participation in a 10 year 85% NRA on a vote of 3-0. 

 

Requested City Commission Actions

Consider City participation in a 10-year, 85% NRA for 1101/1115 Indiana Street via second reading of Ordinance No. 9021.

 

If NRA participation is approved, authorize the City Manager to execute a:

 

o   Cooperative agreement between the City, County and School District on NRA administration.

 

o   Performance agreement between the City and Applicant.

 

 

 

List of Attachments: 1101/1115 Indiana Street NRA

 

1.    Technical Report and Analysis

    1. HERE Enterprises Request Letter and Application
    2. City NRA Policy (Resolution 6954)
    3. City IRB Policy (Ordinance 8253)
    4. Model Results and Limitations

2.    Staff Additional Analysis

3.    Applicant’s Letter dated June 26, 2014

4.    Staff Supplemental Information for Applicant’s June 26, 2014 letter

5.    Applicant’s Estimated Retail Sales Tax Revenues

6.    Draft Neighborhood Revitalization Plan

7.    Draft Calendar

8.    Draft PIRC Meeting Minutes (June 24, 2014)

9.    Ordinance 9021 establishing the revitalization area and approving the NRA plan

10. City, County, and School District Cooperative Agreement

11. Draft Performance Agreement