Memorandum

City of Lawrence

City Manager’s Office

 

TO:

David L. Corliss, City Manager

 

FROM:

Cynthia Boecker, Assistant City Manager

CC:

Diane Stoddard, Assistant City Manager

Toni Wheeler, Legal Services Director

Scott McCullough, Director of Planning and Development Services

John Jay Miller, Staff Attorney

DATE:

March 27, 2008

 

RE:

April 1 City  Commission Items:  The 12th and Oread Redevelopment District

 

 

Tuesday’s City Commission meeting agenda includes several items relating to the Oread Redevelopment Project. 

 

Redevelopment Project Plan and Redevelopment Agreement

The first item is a public hearing on the Oread Redevelopment Project Plan.  Following City Commission adoption of Ordinance 8234, which created the Oread Tax Increment Financing Redevelopment District, the developer filed the redevelopment project plan with the City on February 22. Pursuant to state statute, the plan was provided to the Planning Commission and delivered to the Board of County Commissioners and Board of Education of USD 497.  On February 25, the Planning Commission made a finding that project plan is consistent with the intent of the City’s comprehensive plan for the development of the City. 

 

The redevelopment plan:

  • Outlines The Oread project, consisting of a hotel, meeting space; mixed use commercial space; and an underground parking structure.
  • Outlines infrastructure improvements, including street, sidewalk, landscaping and utility improvements.
  • Outlines the use of tax increment financing (TIF) to fund up to $7.1 million (plus market rate interest) for actual costs of public improvements.  If TIF revenues exceed the $7.1 million amount, plus interest during the 20 year period, revenues in excess of that amount will be shared fifty percent (50%) with the developer fifty percent (50%) with the taxing jurisdictions (Douglas County, USD 497 and the City). 

 

The redevelopment plan is the basis for the redevelopment agreement, which serves as the contract for this project.    The redevelopment agreement, which is more specific than the plan:

  • sets forth a process for reimbursement of redevelopment project costs;
  • describes the project scope, schedule and budget; and,
  • sets forth land use and other terms and restrictions. 

 

Notably, the agreement:

 

  • Sets the total reimbursement amount (TIF and TDD) at a maximum amount not to exceed $11 million plus interest at the developer’s actual borrowing rate (not to exceed the Wall Street Journal prime rate plus one percent (1%)).
  • Outlines that funds will be distributed on a pay-as-you-go basis, using revenues from incremental tax revenues and transportation development district sales tax revenues and that no bonds will be issued by the City.
  • Requires that the developer shall commence and complete the project within 30 months of City Commission approval of the agreement.
  • Requires the developer to submit a final development plan for the project area for approval pursuant to City Code.
  • Outlines, in Exhibit F, land uses prohibited in the district.
  • Allows a maximum of six permanent flagpoles on the roof of The Oread, each with a maximum height of 25 feet.  A maximum of 14 additional temporary flags may be displayed for special events for a maximum of 90 days per year.  Exhibit I depicts the proposed flag display.

 

Creation of Transportation Development District

A second public hearing relates to creation of a Transportation Development District (TDD).  As has been discussed previously, the developer has proposed a one percent (1%) sales tax be imposed on only the Oread property for up to 22 years.  Revenues collected from this tax will fund actual costs of the parking garage construction.  If adopted, collections of the sales tax would begin October 1, 2009. 

 

Demolition of Existing Structures

The developer has inquired about the timeline for demolition of existing structures in relation to this project.  Resolution 6753, approved by the City Commission on February 12 made findings concerning the determinations of the Historic Resources Commission regarding the proposed Oread Redevelopment Project and required

 

  1. All possible planning has been done to minimize the harm to the listed properties.  The planning includes:

 

1.      Complete documentation of all structures to be demolished shall be conducted by a professional that meets the National Park Service Professional Qualification Standards as prescribed in 36 C.F.R. 61 and shall include scaled drawings and photographs.

 

2.      Triple T shall advertise in the Lawrence Journal-World that the structure at 1142 Indiana Street is available to be moved at the sole expense of a qualified and willing interested party.  Triple T may establish a reasonable deadline for such relocation of the structure to occur.  Triple T may evaluate whether an interested party is qualified and may require such party to enter into a reasonable contract for the right to remove the structure.  If no such qualified and willing interested party comes forward, the structure may be demolished by Triple T, at its sole cost and expense, upon securing the appropriate demolition permit.

 

3.      An approved and designated pedestrian path shall be designed to allow for ease of pedestrian traffic during the construction process.

 

4.      No demolition permits shall be issued for the Project until the Tax Increment Financing District is lawfully established and the 12th and Oread Tax Increment Financing District Redevelopment Agreement is executed.

 

5.      The proposed public improvements, including the new sidewalks and stairs to Mississippi Street, will add value to the environs of the listed properties.

 

Staff is currently awaiting documentation from the developer regarding item number two. Once that documentation has been received and execution of Ordinance 8253 before the Commission at this time is completed, demolition could occur.  It is anticipated that this could be as early as April 9.

 

Planning Process

The developer has informed staff of changes that will be made to the final development plan.  Plans will soon be submitted for staff review.   As explained to staff, the changes do not substantially affect building height, footprint, or appearance.  Changes include adding a floor below grade in the parking garage, closing one access point into the garage and changing hotel space use.  Initial staff review has found these changes may require revisions to the preliminary development plan.  Consideration of the revised preliminary development plan, along with the final development plan, is scheduled to be heard by the Planning Commission at their April meeting.  This would allow City Commission review of the revised preliminary development plan in mid-May.  This process will not affect TIF related actions.

 

Commission Action

  • Conduct public hearings on the redevelopment plan and creation of a transportation development district. 
  • Consider on first reading adoption of Ordinance No. 8253 adopting the redevelopment project plan.
  • Consider Resolution No. 6760 approving the redevelopment agreement.
  • Consider on first reading adoption of Ordinance No. 8254 authorizing creation of a TDD  and imposition of a TDD sales tax