Memorandum

City of Lawrence

City Manager’s Office    

TO:	Mayor and City Commissioners
FROM:	David L. Corliss, City Manager
DATE:	December 10, 2009
RE:	Downtown Sprinkler Incentive Program – History and Background

This memo will provide background and historical information pertaining to the downtown sprinkler incentive program. While the building at 319 Perry would not have been eligible for the program due to its location, and cannot be evaluated against the same criteria for that program due the unique physical characteristics of historic downtown buildings, background information on the downtown sprinkler incentive program may be useful for the City Commission’s consideration of Midland Care Connection’s request.

The 2007 City Budget included $250,000 in the Utilities Non-Bonded Water Construction account for a downtown sprinkler incentive program. The program would allow businesses within the Downtown Urban Conservation Overlay District to receive up to a 75% reimbursement on qualifying expenses to install fire sprinkler systems. Businesses could be reimbursed up to a maximum of:

· $25,000 per building with up to 25’ of frontage;

· $10,000 per additional 25’ of frontage ($400 per frontage foot);

· $5,000 per additional story ($1,000 per mezzanine requiring separate sprinkling).

Applications to the program were evaluated on a number of criteria which gave higher scores to buildings that:

• Had no current sprinkler systems;
• Had basements;
• Had assembly spaces or upstairs tenants;
• Had Massachusetts Street addresses or adjacent to Massachusetts Street addresses;
• Were contributing structures.

More details regarding the program are available in the attached program outline.

Based on evaluation of the original applications to the program, staff recommended on 4/10/07 that the City Commission authorize the City Manager to enter into contracts with the Incentive Recipients of the 2007 Downtown Sprinkler Program. Contingent on funding available, the following recipients were recommended for approval and were asked to begin securing bids for fire sprinkler installation work:

• Teller’s                             746 Massachusetts Street
• Lawrence Masonic Temple   1001 Massachusetts Street
• Buffalo Bob’s Smokehouse  719 Massachusetts Street
• Goldmakers                       723 Massachusetts Street
• The Bayleaf                       725 Massachusetts Street
• The Casbah                       803 Massachusetts Street
• Hobbs                              700 Massachusetts Street
• Silverworks                       715 Massachusetts Street

In the event that additional funds remained available once firm bids for system installation have been received by the above recipients, staff recommended that the following applicants may be selected to receive a sprinkler system incentive:

· Francis Sporting Goods       721 Massachusetts Street

· Salon DiMarco                  733 Massachusetts Street

· Black-Eyed Susans             820 Massachusetts Street

· Kimbari                           822 Massachusetts Street

· La Parrilla                         814 Massachusetts Street

The following businesses have actually received reimbursements to date through the program in the amounts listed:

• The Casbah (formerly)        803 Massachusetts             $25,128.00
• Buffalo Bobs’s                             719–721 Massachusetts       $37,642.38
• Goldmakers                       723–725 Massachusetts       $70,000.00
• Sacred Sword & Joe College 732–734 Massachusetts       $39,581.25
• Tellers                              746 Massachusetts             $41,000.00
• Silverworks (formerly)                  715 Massachusetts             $21,916.00

Total               $235,267.63

The original applicants to the downtown sprinkler incentive program are listed in the attached spreadsheet.