Memorandum

City of Lawrence

Department of Legal Services

TO:	David L. Corliss, Interim City Manager
FROM:	R. Scott Wagner, Legal Assistant
CC:	Margene Swarts, Neighborhood Resources
Date:	June 23, 2006
RE:	Transfer of City owned lots – Homewood Gardens Addition

Tenants to Homeowner’s Inc. (TTH), has submitted for the July Planning Commission agenda, a proposed re-plat of a portion of Homewood Gardens Addition near 19^th & LaSalle. The project will create ten new lots for affordable single-family residential housing in East Lawrence. The City of Lawrence owns portions of 3 lots of the proposed project (Lots 5 & 6 of Block 10, and the north 40’ of Lot 1 in Block 9 - see attached map – City lots highlighted in yellow). City Legal, Planning, Parks and Recreation and Neighborhood Resources staff began meeting in April with representatives of TTH regarding the possible transfer of these lots to TTH for this project.

These City-owned lots were located in a designated flood plain and originally acquired with CDBG funds allocated from HUD as a result of the floods of 1993 and 1994. The City purchased the properties, razed the damaged houses, and kept the lots to preclude future flood plain development. Since then, adjacent storm drainage improvements have elevated this area out of the flood plain. At this time, City staff recommends donation of these lots to TTH in order to promote this affordable housing project.

However, this area was recommended for total City acquisition by the recently adopted Burroughs Creek Area Plan as a tier 2 priority (see map 3-1 from the plan). The area was identified as a trail access point on the east due to the presence of LaSalle Street and the city owned lots. Adoption of the plan was not authorization to acquire this area (see minutes from 2-14-06 City Commission meeting).

Legal staff began the process of property acquisition of the former Burlington, Northern, Santa Fe rail corridor last fall with the survey work prepared by BG Consultants (survey exhibit). As part of this land transfer, TTH will dedicate the necessary property interests for the abandoned rail corridor along the non-City owned lots (which constitutes 13,242 sq. ft. of former rail rights-of-way). The City will also reserve property interests to the center-line of the former rail corridor adjacent to the City lots and the platted LaSalle Street (which will be vacated by the replat). Access to the future rails-to-trails project will be provided at Ward Street where an existing 10 ft pedestrian and bicycle easement currently exists. As part of the property transfer agreement, TTH, which owns the lot to this access point (Douglas County Plate No. U10749), will grant an additional 20 feet of pedestrian and access easement to the rail corridor. Several area neighborhood associations have already expressed their support for the TTH project. Woods on 19th ELNA

Staff is requesting authorization to prepare a contract for the transfer of the above said City lots to TTH, with dedication by TTH of the former rail corridor interests to the City, pending approval of all land use issues related to the proposed re-plat, by the Governing Body.