LAWRENCE ASSOCIATION OF NEIGHBORHOODS

November 13, 2007

Lawrence City Commission

City Hall

6 East 6^th Street

Lawrence, KS  66044

Re:  Deciphera Economic Development Decision

Commissioners,

The Lawrence Association of Neighborhoods (LAN) wants to express its concern over the process followed by the City Commission in its recent decision to grant a series of economic development incentives to the firm Deciphera.

On October 23, 2007, the City Commission approved a very large package of subsidies worth an estimated $3 million.  This package of subsidies includes direct assistance toward the purchase of a building plus a new, open ended property tax rebate.

Closed-door meetings

The City Commission chose to make its decisions on this package of subsidies behind closed doors.  Rather than openly discussing this use of large amounts of taxpayer monies, the City Commission chose to consider this package while meeting in executive session under the dubious excuse that it is a matter protected under attorney-client privilege.  This is wrong.  LAN very much appreciates the recognition and concern expressed by City Staff and Commissioners that they made a serious mistake in the way this was handled.

Decisions of this type should enjoy full transparency.  The public should be fully informed and have the opportunity to comment on such subsidy packages before they are adopted.

New tax subsidy program created without due process

The City has a policy for granting tax abatements to firms.  The procedure for granting such a tax break is carefully detailed in City ordinances.  The use of a new form of tax break circumvents this procedure.  The City Commission did not subject this new form of tax break to examination through the customary benefit-cost analysis.  The City Commission did not submit this new form of tax break for review by its Public Incentives Review Committee.  The City Commission did not provide information to the public so that it could examine the subsidy mechanism and submit meaningful comment during a public hearing.  This is wrong.

The City Commission should not adopt new tax subsidy programs without complete, informed, and open discussion by all interested parties, including the taxpayers.

LAN Hopes that The City Commission Will

• Reconsider the procedure that it has followed in this unfortunate case. 
• Avoid actions that suggest conflicts of interest.
• Return to transparency in its decision process.  
• Return to careful open scrutiny of the use of the taxpayer’s money.

Sincerely,

Carol Bowen

Lawrence Association of Neighborhood - Vice President