Memorandum                    

City of Lawrence

City Manager’s Office

TO:	City Commission
FROM:	Diane Stoddard, Interim City Manager
DATE:	August 17, 2015
CC:	Casey Toomay, Assistant City Manager
RE:	East Hills Business Park Special Assessment Forgiveness Request

The City of Lawrence is in receipt of a request from PROSOCO, a local company owned by Bruce Boyer and David Boyer.  The request has been submitted via Colliers International and Douglas County. PROSOCO is a third generation business headquartered in the East Hills Business Park that produces and sells products for building protection and restoration for historic structures in the United States and around the world.  They have just announced the development of a new business partnership that will manufacture insulated wall-panel products for the high-performance segment of the construction industry. The business is Build Smart, and their product will be manufactured here in Lawrence, requiring additional space. 

Boyer Properties LC has a contract to purchase the Kinedyne property, and are tentatively scheduled to close on that acquisition by the end of the year (see attached map). They plan to retrofit the property to accommodate the production of the Build Smart panels.   In order to complete the retrofit, it will be necessary to construct a driveway that circles the existing building.  The Kinedyne building is constructed almost to the west property line and the site will currently not accommodate this driveway.  The driveway can be accommodated however if the site could be expanded slightly to the west onto the easternmost portion of the adjacent lot owned by the County.   

PROSOCO and its real estate representative from Colliers have been discussing the transaction with Douglas County, the owner of the lot.  Since the East Hills Business Park was developed, the County has had an ongoing agreement with the City regarding the deferral of special assessments against the lots it owns and holds in anticipation of future development, until such lots are sold.  Lots that are then sold have special assessments due. 

In this situation, Douglas County is requesting that the City consider forgiving the outstanding special assessments on this lot.  The County Administrator has indicated that the item will be placed on a future County Commission agenda for consideration to donate the lot to PROSOCO to provide an opportunity to launch the Build Smart project.  As indicated in the Colliers correspondence, PROSOCO has specifically indicated that it will not pursue other economic development incentives for this project.

The special assessments outstanding on the lot are $44,937.81, as noted on the attached map. 

Requested Action:

Forgive special assessments in the amount of $44,937.81 on Lot F in the East Hills Business Park for the PROSOCO expansion project, contingent upon Douglas County Commission action to donate the lot to PROSOCO for the project.