Memorandum

City of Lawrence

TO:	Mayor and City Commissioners
FROM:	David L. Corliss,  Interim City Manager
CC:	Debbie Van Saun, Assistant City Manager
Date:	June 1, 2006
RE:	Assistance for Downtown Marketing

City staff has reviewed the request for financial assistance for downtown marketing efforts during the waterline improvement project down Massachusetts Street, and offers the following comments:

The City has not traditionally made payments to businesses or residences who suffer inconvenience because of public infrastructure improvements.  This practice, which is traditionally followed by most communities, is based in the difficulty in calculating the business loss associated with infrastructure improvements, the temporary nature of such projects, the additional public costs associated with such payments, and the fact that most infrastructure projects do not close businesses for an extended period of time but add inconvenience, additional time to access a business, etc.  While our goal is to reduce inconvenience on all projects, unfortunately, some projects do add travel time to businesses (e.g. the Kasold project and concerns at the Clinton Parkway shopping center, the recently completed improvements at 6^th and Wakarusa, etc.) and create other unwanted inconveniences.

The City is making a substantial investment in the downtown waterline project, including incentives to complete the project in a timely manner.  I believe it is possible to distinguish the downtown waterline project from other City infrastructure projects, and that it is appropriate to provide some marketing assistance, signage improvements, etc. during the length of the project.  Marketing assistance for downtown should not be viewed as a precedent mandating assistance for other projects.  The City currently provides annual budget assistance for Downtown Lawrence.  Distinguishing characteristics of the downtown waterline project include the removal of parking immediately adjacent to businesses, the close proximity of the construction project to the businesses, and the partial closure of the street.  In the downtown area C-3 zoning district, the City – not the business - has the responsibility of providing parking as distinguished from other areas of the community where most public projects do not remove parking for businesses.

The Downtown Lawrence, Inc. request for marketing assistance is for $48,100.  If the Commission seeks to provide assistance, staff recommends that a separate agreement be executed with DL (scope further defined, invoices and reporting requirements, etc.).  Further some of the items in the DL budget appear to be a lesser priority, including event sponsorship and advertising to the public concerning the benefits of the waterline project.  An option the Commission may wish to pursue is to approve one-half of the requested amount and monitor the activity in the downtown area to determine whether additional funding later in the waterline project is appropriate.

Recommendation:    Authorize staff to execute an agreement with Downtown Lawrence, Inc. in the amount of $24,050 for marketing assistance during the waterline improvement project.