Memorandum

City of Lawrence

City Manager’s Office

TO:	David L. Corliss, City Manager
CC:	Diane Stoddard, Assistant City Manager Casey Toomay, Assistant City Manager
FROM:	Britt Crum-Cano, Economic Development Coordinator
DATE:	April 30, 2015
RE:	First Reading of Ordinance 9111: Industrial Revenue Bonds for Dwayne Peaslee Technical Training Center

Introduction

On March 31, 2015, the City Commission adopted Resolution No. 7110, indicating the intention of the City of Lawrence to issue up to $3.2 million (to cover Phase I and II at $1,600,000 each) in industrial revenue bond financing for the Dwayne Peaslee Technical Training Center project for the purpose of accessing a sales tax exemption on construction materials.  The sales tax exemption certificate for the project has already been authorized by the Kansas Department of Revenue and provided to the developer.  It is now time to finalize the bond transaction by authorizing the bond ordinance. 

Project Overview

The Dwayne Peaslee Technical Training Center is a collaborative initiative of the Economic Development Corporation of Lawrence and Douglas County, the City of Lawrence, Douglas County, The Chamber, local industry, and private donors to fill the technical skills training gap that currently exists in the Lawrence and Douglas County community.

The Center is part of a new technical training campus, located at 2920 Haskell Avenue in Lawrence, which includes two buildings:  the Dwayne Peaslee Technical Training Center (under renovation) and the USD 497 College and Career Center (under construction). These two buildings house more than 100,000 square feet of space.

The Peaslee Center will focus on training adults.  However, the synergy between the Peaslee Center and the College and Career Center will support career pathways for both students and adults. Courses are anticipated to start in Fall 2015, with training offered in Construction, Advanced Manufacturing, HVAC (limited to electrical aspects), Technical Math, Computer Literacy, and supportive areas such as employability skills, resolving conflicts, and problem solving.

Processing Background

Application—On March 24, 2015, Staff received an Application from The Chamber of Lawrence, Kansas requesting Industrial Revenue Bond (IRB) financing in order to access a sales tax exemption on project construction materials and labor expenses related to remodeling the Dwayne Peaslee Technical Training Center. 

City Commission Receipt of Request—IRB financing was part of a requested assistance package received by the City Commission at their 3-24-15 meeting for support of the training center. At the Meeting, the City Commission referred the request to the Public Incentives Review Committee (PIRC) for review and recommendation.

PIRC Actions—During their meeting on March 26, 2015, PIRC voted 5-0 to recommend approving the request for up to $3.2 million in Industrial Revenue Bonds. Minutes of the March 26, 2015 PIRC meeting are attached.

Resolution of Intent—At the March 31, 2015 City Commission meeting, the Commission adopted Resolution 7110, authorizing the issuance of up to $3.2 million in industrial revenue bonds for the Dwayne Peaslee Technical Training Center for the purpose of obtaining a sales tax exemption on project construction materials and labor remodeling expenses.

Requested Action:

Adopt on first reading, Ordinance No. 9111, authorizing up to $1,600,000 in industrial revenue bond (IRB) financing for Phase I of the Dwayne Peaslee Technical Training Center project located at 2920 Haskell Avenue, for the purpose of accessing a sales tax exemption on construction materials.