Memorandum

City of Lawrence

City Manager’s Office

TO: Mayor and City Commissioners

FROM: City Manager David L. Corliss

DATE: January 17, 2008

RE: Direction to Staff from Economic Development Study Session

As a result of Monday’s study session topic on economic development, it is the understanding of staff to follow up on the following items for the City Commission’s review, discussion and action at a later date:

• Review existing Economic Development Policy(ies) and provide recommendations on possible changes, including non-tax abatement policy issues (public funds, infrastructure, TIF, TDD). Involvement of Douglas County and Chamber of Commerce stakeholders, along with other public participants will be part of this review.

• Review Tax Abatement Policy

ü Discuss “but for” provision

ü Define substantial compliance

· Cost/Benefit Analysis

ü Review current analysis

ü Identify important factors that should be included in analysis

ü Provide options

ü Important for it be understandable to public and decision-makers

ü Possible application for incentives other than tax abatement

• Review process alternatives

ü Review roles of the Economic Development Board and the Public Incentives Review Committee

ü Define public process for non-tax abatement incentives

• Develop draft policies for consideration

ü Transportation Development District Policy

ü Tax Increment Finance Policy

ü Infrastructure Incentive Policy

ü Cash Incentive Policy

ü Review current Industrial Revenue Bond Policy

As staff prepares drafts of these items, we will place them on future Commission agendas for public input and discussion. It is staff’s understanding that the Commission does not plan to require existing projects or pending projects to adhere to these possible future policies, specifically the Oread Inn project is not expected to wait until the development of the TIF and TDD policies.

City Commission direction on the timeframe for these items and their public consideration is also requested.