Memorandum

City of Lawrence

Planning & Development Services

TO:	David Corliss, City Manager
FROM:	Lynne Braddock Zollner, Historic Resources Administrator
CC:	Scot McCullough, Director Planning & Development Services Sheila Stogsdill, Assistant Director Planning
Date:	March 25, 2008
RE:	Next Steps for Carnegie Library Project and Associated Future Agenda Items

Please include the following items on the City Commission agenda for consideration at a future meeting.

I. Carnegie Building and Save America’s Treasures Grant, Project #20-04-ML-0021 As part of the Federal Save America’s Treasures initiative to preserve significant historic properties and collections, the City of Lawrence was awarded a matching grant award of $98,768 for preservation work at the Carnegie Library (200 W. 9^th Street).

II. Project History. The Lawrence City “Carnegie” Library was constructed in 1904 with a $25,000 grant from Andrew Carnegie. The architect was George A. Berlinghof of Beatrice, Nebraska and the general contractor was George A Shaul of Seneca, Kansas. The structure continued to be used as the city library until 1972 when a larger city library was constructed. After significant evaluation and public involvement, the Lawrence Arts Center was established in the structure. The Lawrence City Library was listed in the National Register of Historic Places as the Old City Library in 1975. When the activities and collection of the Lawrence Arts Center grew too large for the existing Carnegie structure, an evaluation was completed by the City of Lawrence to identify alternatives to adjust the structure for the needed extra space. At that time, the City of Lawrence decided that the additional space needed by the Arts Center would dramatically alter the existing structure. It was decided by the community that the preservation of the existing structure was important to the community at large and that the expansion needed by the Arts Center was best addressed with a new facility. In 2002, the Lawrence Arts Center opened and the “Old” Lawrence City “Carnegie” Library was left vacant. Because the structure is so significant and important to the community, the City of Lawrence hired a team of consultants to complete a facilities evaluation. This evaluation, completed by GLPM Architects in September, 2002, analyzed the existing conditions of the structure, identified a stabilization plan, and outlined preliminary utilization plans. The project was divided into two phases: Phase One – Building Stabilization (completed in 2004) and Phase Two – Interior Rehabilitation for Community Use.

In 2003, Mark Kaplan and the Hobbs Park Memorial Fund solicited aid from Congressman Moore to acquire funding to restore the Murphy-Bromelsick House located in Hobbs Park. Congressman Moore succeeded in obtaining an earmark appropriation for a Save America’s Treasures grant administered by the National Park Service. Unfortunately, the Murphy-Bromelsick House was not listed on the National Register of Historic Places and was therefore, not eligible to receive the funds. The earmark was shifted to the Carnegie Library in late 2004. Since that time, City staff has been working with the National Park Service to finalize a project agreement and approved plans for the allocation of the grant funds. The City has submitted a completed Project Information work plan summarizing what will be accomplished with this grant and matching share, as well as a budget outlining the proposed expenditure of these funds and required nonfederal matching share. The required nonfederal matching share of $98,768 must come from nonfederal sources, and must be expended during the grant period for work on this project. Activities to be supported by the grant must be those which are directly related to and necessary for the repair and preservation of the historic property as identified in the Appropriation Act.

The City issued a Request for Proposals for a new use for the Carnegie Building in the fall of 2005. The proposed new uses were reviewed by the Commission in February, March and April of 2006. The Commission approved the Lawrence Parks and Recreation Department as the future tenant of the building on May 2, 2006. The building is to be operated by Parks and Recreation with some rental space for public use. Additionally, it is anticipated that Destination Management, Inc., and the Freedom’s Frontier National Heritage Area will have office space in the basement.

II. Project Status. On February 19, 2008 the National Park Service approved the final design of the addition and the rehabilitation plans for the Carnegie Library. In order for the project to proceed, the following requirements must be met.

1. The City must purchase and place a sign on the project property that identifies the work in progress as partially funded by the National Park Service and the Save America’s Treasures grant program.

2. The City must enter into a conservation easement with the State Historic Preservation Office to protect the historic property.

In addition, the City will need to:

1. Approve the site plan (SP-03-25-06) for the alterations to the site.

2. Appropriate funds for the project (including the $2,000 processing fee for the Rehabilitation Tax Credit program).

3. Authorize final construction documents.

4. Set a bid date. (Likely to be set in several months.)

5. Award bid.

6. Provide oversight of the construction process by the Historic Resources Administrator.

7. Require any and all changes required in the field to be approved by the Historic Resources Administrator prior to commencement of the related work.

8. Require documentation of all expenditures on the project to be separated into existing building rehabilitation and new construction.

IV. Project Details. This project includes Phase Two of the Carnegie Library Project – the interior rehabilitation for a community use. This rehabilitation includes the preparation of design and technical specifications to address the structure’s deficiencies with modern building codes and accessibility standards. In order to address some of these deficiencies, a new addition will be placed to the north of the existing structure. This project will also include the interior finishes required to make the building habitable for a new use for the community. The proposed rehabilitation and new addition has been reviewed and approved by the Lawrence Historic Resources Commission, the Kansas State Historic Preservation Office, and the National Park Service. The project will require special attention to the specifications to ensure appropriate protection of the historic structure. All work must meet the Secretary of the Interior’s Standards for the Treatment of Historic Properties.

V. Project Funding. The SAT Grant requires a dollar-for-dollar non-Federal match, which can be cash, donated services, or use of equipment. The grant ($98,768) and the non-Federal match ($98,768) must be used during the grant period. The project budget includes the overall cost of the rehabilitation for the project; however, this budget can be adjusted during the grant cycle to reflect the final project design. The project agreement for the Carnegie Library identifies the grant period from August 1, 2005 to August 31, 2008. If adequate progress has been made on the project, an extension on the grant will be issued to allow for the completion of the project.

In addition to the funding provided by the SAT Grant, this project is eligible for the State Rehabilitation Tax Credit program for properties listed on the National or Kansas registers of historic places. This program allows for a 25% tax credit on the overall cost of qualified rehabilitation expenditures. The tax credits are transferable and the City can sell the tax credits to provide revenue for the project.

Based on the most recent information from the architect, the project is estimated to require $1,320,356 for construction. Taking into account the $98,768 grant and the 25% tax credit (assume 80 cents on the dollar on eligible expenses for a total of $70,555), the total estimated cost to the City will be $1,151,033.

The project was originally budgeted in the 2005 CIP for $750,000. During that year, the City issued $363,000 in debt for the Phase I Improvements. Additionally, tax credits were sold which netted the City $82,000. Also, $600,000 was included in the 2006 CIP that was not utilized.

The next steps are the completion of the final construction documents and then a date to bid the project will be set. It is estimated that the completion of the construction documents will take at least six weeks. Once the project bids are in, the bids will be returned to the City Commission for action.

VII. Action Requests.

1. Authorize City Manager to purchase and display the required sign to be located on the property at 200 W. 9^th Street for the duration of the project.

2. Approve, subject to conditions, SP-03-25-06, A site plan for site improvements to the northwest corner of 9^th and Vermont Streets. Submitted by Peridian Group, Inc. for the City of Lawrence, property owner of record.

3. Authorize payment of $2,000 to the Kansas State Historical Society for the review of the tax credit documentation.

4. Approve the attached conservation easement for the protection of the property located at 200 W 9^th Street as required by the grant agreement.

5. Authorize the completion of final construction documents.

6. Authorize City staff to set the bid date for the project.

Attachments:

HRC Minutes of 09/21/06

HRC Staff Report of 09/21/06

NPS Approved Height Addition