Memorandum

City of Lawrence

City Manager’s Office

TO:	David L. Corliss, City Manager
FROM:	Diane Stoddard, Assistant City Manager
CC:	Cynthia Boecker, Assistant City Manager
Date:	November 3, 2008
RE:	Fire Sprinkler System Installation Reimbursement for 723 and 725 Massachusetts

Please include the following item on the City Commission consent agenda for consideration at the November 18, 2008 meeting:

Reimburse Goldmakers for the sprinkler system installation at 723 Massachusetts (Goldmakers) and 725 Massachusetts (formerly Bay Leaf) for sprinkler system installation in the amount of $70,000.

Program History.  The City Commission, at its June 6, 2006 meeting (see attached), authorized a tap incentive to downtown building and business owners in the 700 and 800 blocks of Massachusetts Street.  In order to provide further incentive to downtown building and business owners, the City Commission allocated $250,000 in the 2007 and 2008 budgets to fund an incentive program that would reimburse property owners up to 75% of the cost of installing full sprinkler systems in selected downtown buildings.  The properties (see attached) for the 2007/2008 program were approved by the City Commission on April 10, 2007. 

Program Status:  To date, five of the approved downtown properties (including two in this memo) have taken advantage of the incentives, and have been reimbursed a total of $154,687.15 as part of the program. 

723-725 Massachusetts Status.  When 725 Massachusetts received authorization under the Downtown Sprinkler Program, the building was occupied by the Bay Leaf.  725 Massachusetts has since been purchased by Mr. Zacharias, the owner of Goldmakers at 723 Massachusetts.  Both buildings at 723 and 725 Massachusetts had received authorization under the Downtown Sprinkler Program at 75% reimbursement to a maximum expenditure of $35,000 per structure.   The sprinkler system has been installed in 723-725 Massachusetts in compliance with NFPA-13 and City of Lawrence standards.  A summary of the installation costs is attached.

Project Funding.  The program is funded by the non-bonded water construction account of the Utilities Department.

Action Request.  Staff recommends approval to reimburse Goldmakers for sprinkler system installation in the amount $70,000 for 723 and 725 Massachusetts as part of the Downtown Sprinkler Program.