Memorandum

City of Lawrence

TO:	David L. Corliss, City Manager
FROM:	Victor Torres, Assistant Director, Development Services Ed Mullins, Finance Director R. Scott Wagner, Management Analyst, Legal Services John Miller, Staff Attorney – Legal Services Lynn Zollner, Historic Resources Administrator, Planning Lesley Rigney, Neighborhood Programs Specialist, Development Services
CC:	Cynthia Boecker, Assistant City Manager Diane Stoddard, Assistant City Manager Sheila Stogsdill, Assistant Director, Planning Scott McCullough, Planning and Development Services Director
Date:	November 27, 2007
RE:	Next Steps in Implementation of Kansas Neighborhood Revitalization Act

Pursuant to your direction, we have prepared draft plans for two additional neighborhood revitalization areas of Lawrence as follows:

Downtown Commercial District (map)
Designated Neighborhoods (map)

Additionally, we have a draft policy resolution for consideration which would set forth the goals and policies for use of the NRA in Lawrence.

Background

The City Commission indicated interest in implementation of the Kansas Neighborhood Revitalization Act (NRA) as a tool to encourage quality redevelopment of portions of our community (1/19/05 memo, 3/15/06 memo, 8/3/06 memo, 5/24/07 memo).

On April 3^rd, 2007 the Commission adopted Ordinance 8093 which enacted the first plan under the act for Lawrence – the 8^th and Pennsylvania Plan. The plan area for this district encompasses a relatively small area of East Lawrence (roughly from 8^th Street to 9^th Street between Delaware and the alley east of Pennsylvania) and was designed especially for the developers of the project to recapture related infrastructure improvement costs. Since the adoption of Ordinance 8093, the Commission directed staff to move forward with expanded NRA Plans for downtown and certain designated neighborhoods.

This memorandum requests Commission adoption of a City policy regarding the NRA and beginning the implementation of NRA districts for the Downtown Commercial District and for Designated Neighborhoods in Lawrence.

NRA Policy Statement

Attached is a draft resolution outlining the City’s policies for use of the NRA in Lawrence.

Two principal areas are considered for inclusion within NRA boundaries: Designated Neighborhoods and the Downtown Commercial District (Downtown). The neighborhoods are designated as those where a majority of households have a low-moderate income based on U.S. Census data. In Lawrence, the City’s consolidated plan for use of federal Housing and Urban Development funds, identifies the following neighborhoods as low-mod:

Brook Creek Neighborhood (data)
East Lawrence Neighborhood (data)
North Lawrence Neighborhood (data)
Oread Neighborhood (data)
Pinckney Neighborhood (data)

The Downtown Commercial District is targeted for its historic properties and to help meet the City’s goals of encouraging development and redevelopment in the central urban core. The boundaries of the district match the boundaries of the urban conservation overlay district established by Ordinance 7395.

The draft policy does provide the flexibility for the Governing Body to consider other areas or properties outside of these boundaries on a case by case basis (see Section 3), if the property meets the conditions of the NRA statute.

NRAs – Downtown, Designated Neighborhoods

Commission adoption is requested in order to begin implementation of NRA districts in the Downtown Commercial District and the neighborhoods. City staff has reviewed numerous NRA plans adopted throughout the state and has spoken to municipal staff involved with the implementation and operation of these plans. In addition, city staff presented draft plans at the recent City/County/USD Joint Study Session and at recent neighborhood meetings including Downtown Lawrence, Inc., East Lawrence and Lawrence Association of Neighborhoods. Input from these meetings and from the public at-large has been considered in plan revisions. A draft plan of each district is attached and both are based largely on the adopted 8^th & Penn plan.

Highlights of the Plans:

Term of the plan is 2 years in order to allow for an evaluation of the program after the initial rollout
$10,000 minimum increase in appraised value for single and two family residential in order to qualify for rebates – Neighborhood Plan.
$10,000 minimum increase in appraised value for multifamily residential and commercial in order to qualify for rebates for the neighborhood plan, $5,000 minimum increase for the Downtown Plan[1].
95% rebate allowed for new construction, remodels, additions - 10 year rebate period on residential properties.
95% rebate allowed for new construction, remodels, additions - 10 year rebate period on commercial properties.
95% rebate allowed for remodels, additions, 15 year rebate period for historic properties.
Creation of a committee consisting of representatives from the City, County, USD 497 to administer capital or other expenditures inside the plan areas for amounts not rebated.

Areas of overlap – there are parcels located in both districts (red boundary indicates the Downtown District - map). The plan documents note that if a property is located within the Downtown Commercial District, it must comply with that plan’s requirements and is eligible for rebates only under that plan. In the East Lawrence neighborhood there are areas of overlap with the already established 8^th & Pennsylvania district. Properties located in the 8^th & Pennsylvania district must comply with, and are only eligible for rebates, under that NRA plan.

[1] Average commercial remodels in the downtown district have averaged $5,210 over the past 3 years. Staff recommends a lower minimum commercial threshold for the downtown district so that more projects will qualify under the plan.