Memorandum

City of Lawrence   DRAFT  

TO:	Mayor and City Commissioners
FROM:	City Manager David L. Corliss
CC:
Date:	June 17, 2008
RE:	Possible Special Assessment Benefit Districts for University Park

The developer for the proposed University Park residential development to be located west of Iowa, south of Oxford Road, is requesting the use of special assessment benefit district financing for some of the proposed public improvements (construction and design costs) in the development.

These improvements include:  public streets, sidewalks, storm sewer improvements, sanitary sewer improvements, and waterlines.  The City’s development policy (Resolution No. 5614) allows for these public improvements with the following notes.  Benefit district financing is allowed for storm sewer improvements in substantially developed areas of the city.  Staff believes that this in-fill development qualifies for this use.  Additionally, the City has allowed for waterlines to be used in benefit districts with other public improvements to enhance the coordination of improvement projects (avoiding multiple contractors during development, etc).  

Additionally, the developer is requesting special assessment benefit district financing for the proposed relocation of the stone building into the City park, some re-grading in the City park, park sidewalks, and the landscape berm to be constructed along Iowa.  State law allows for public improvements, including public parks to be special assessed, and the City has recently established a benefit district for a public park in the Oregon Trail residential subdivision.  While this is not explicitly authorized in the City’s adopted development policy, State law allows for this benefit district financing and the City does desire to have neighborhood parks in walking proximity to neighborhoods.  The Oregon Trail park is also precedent for this use of special assessment financing.

Additionally, the City’s development policy contains a provision providing that 25% of the costs of the project would be paid directly by the developer, with the remainder assessed.  This is to reduce the City’s exposure of uncollected special assessments.  The City has waived this provision in most instances where there are multiple property owners participating in a benefit district.  The City can consider waiving or reducing this percentage amount as well.  The developed property should provide a higher residential tax base than currently exists for this property.

If the development receives the necessary land use approvals, City staff believes that a special assessment benefit district(s) as contemplated by the developer can be successfully established.  Neither adjoining properties nor the City at-large will participate in the financing of the improvements.  The costs of the special assessment benefit district will be solely borne by the development.  The total costs for the benefit district are estimated by the developer at $800,000.