Memorandum

City of Lawrence

TO:	Mayor and City Commissioners
FROM:	City Manager David L. Corliss
CC:
Date:	November 5, 2007
RE:	Deciphera – East Hills Business Park incentives

Commissioners, I am placing as the first regular agenda item for the November 13, 2007 City Commission agenda discussion of the approved incentives for the Deciphera – East Hills business park project.  The City Commission unanimously approved the various agreements at its meeting of October 23, 2007; however, there was neither adequate briefing materials for the tax rebate incentive nor adequate public discussion of this incentive at the meeting.

I have requested the attendance of Lavern Squire, Chamber CEO and President, for the meeting to discuss the tax rebate incentive and other aspects of the incentives.  Additionally, City staff will prepare background information on this project and examples of workings of the tax rebate requirements which are shared by the four participating entities: the City, Douglas County, Douglas County Development, Inc., and the Lawrence-Douglas County Biosciences Authority. 

Mayor Hack has indicated that she will not participate in the discussion because she retains a financial interest in Deciphera.

I also recommend that the Commission discuss placing the issue of public incentives (that do not require our existing tax abatement process) on a future Commission agenda for additional Commission discussion and direction.  These incentives could include:  public expenditures for private development uses (e.g. the spec building incentives approved in January of this year and continued with the Deciphera incentives); tax increment financing, transportation development district financing, and neighborhood revitalization incentives.