Memorandum

City of Lawrence

Legal Services Department

 

TO:

David L. Corliss, City Manager

 

FROM:

Toni Wheeler, Director of Legal Services

 

Cc:

Diane Stoddard, Cynthia Wagner, Jonathan Douglass , and

Scott McCullough

 

Date:

November 12, 2009

RE:

Annexation of Westar Energy Center and Adjacent Properties

 

 

 

Staff requests direction from the City Commission on whether to pursue annexation of Westar Energy, Inc.’s Lawrence Energy Center.  The City may seek Westar’s consent to the annexation.  Alternatively, the City may pursue annexation independent of the property owner’s consent, subject to the procedural requirements set forth in the state statutes.

 

The Lawrence Energy Center is comprised of approximately 560 acres and is located generally south of the Kansas River, north of Lakeview Road (N 1800 Road) and the Santa Fe Industrial Park and east of E 1200 Road.  The energy plant’s north, south and east boundaries adjoin existing City boundaries.  The power plant has been in this location since 1937.  See the attached map.     

 

The plant is located in the City’s Urban Growth Area (UGA) and Service Area One.  Horizon 2020 encourages the annexation of land within the City’s UGA. In Horizon 2020’s Growth Management Chapter, the Plan identifies the following Annexation Policies:  (1) Lawrence will actively seek voluntary annexation of land within the UGA as development is proposed; (2) annexation shall be required prior to the development in Service Area 1 of the Lawrence Urban Growth Area; and (3) Non-contiguous parcels of land may be developed subject to the policies of the Comprehensive Plan and upon agreement by the owner to annex at the time the parcel of land becomes contiguous to the City.  In light of these annexation policies, it is appropriate to begin discussions with Westar Energy, Inc. regarding annexation of the property into the City. 

 

Future growth and development is anticipated in the northwest region of Lawrence and its outlying area.  The K-10 and Farmer’s Turnpike Plan, finalized by the City Commission and Douglas County Board of County Commissioners in early 2009, provides conceptual, long-range planning and land use guidelines.  The K-10 and Farmer’s Turnpike Plan touches the western boundary of the plant property.  The Santa Fe Industrial Area located south of the Lawrence Energy Center has developed as a thriving warehouse, distribution and manufacturing center.  With the strong City presence to the south of the property and anticipated future development to the west of the Lawrence Energy Center, annexation of Westar should occur at sometime to avoid an island of unannexed land within the City. 

 

Furthermore, the Lawrence Energy Center benefits from its proximity to the City of Lawrence.  It currently receives City water service, paying a higher rate than water customers within the City limits.   Access into the Lawrence Energy Plant is taken from Lakeview Road.  The City currently maintains Lakeview Road from North Iowa to Kasold Drive.    (A pending site plan submitted by Westar Energy, Inc. for improvements to the Lawrence Energy Center anticipates increased truck traffic on Lakeview Road, if the expansion project proceeds.)   Finally, while the Wakarusa Township provides the plant fire protection services, it is likely the Lawrence-Douglas County Fire and Medical Department would respond to any large fire event at the plant.

 

The City’s annexation policies and the benefits the Lawrence Energy Center derive from its location adjacent to the City make it appropriate, in staff’s opinion, to engage Westar in discussions about coming into the City.  Staff believes Westar Energy may also benefit from City annexation.  Annexation by the City may reduce some of the Energy Center’s operating costs.  Once it is annexed into the City, it will be eligible to pay City water rates.  The enhanced fire protection services and the City’s lower ISO rating, may result in lower insurance premiums for the energy plant.    

 

It may also be appropriate to investigate the annexation of other properties in the vicinity of the Lawrence Energy Center for the efficient delivery of municipal services to the area and to help ensure the safe, orderly and planned development of the entire area.  Miller and Wells Acres, a primarily residential development is currently outside City boundaries.  The Miller and Wells Acres property is currently served by City water service (the City purchased the rural water district lines when the City paid for the reconstruction of Riverridge Road); however, these older undersized waterlines should be improved to provide adequate water flow for City fire protection.  City fire protection can only occur after City annexation.  City Utilities staff can perform this waterline work as part of their 2010 work plan if this property is annexed.  The Miller and Wells Acres property is not current served by City sanitary sewer service; however the recently constructed Pump Station No. 46 was constructed with the capacity to service the Miller and Wells Acres property if the property was annexed and sanitary sewer service lines were extended to these properties via a special assessment benefit district.

 

Next Steps

If the Commission so directs, staff could initiate discussions with Westar Energy, Inc. and other property owners in the vicinity to explore whether their consent to annexation can be obtained.  Staff could also continue work on a Report for the extension of municipal services to the area under consideration as required by the annexation statutes.  It may also be appropriate to communicate with Wakarusa Township regarding the proposed annexation, as they will experience a significant loss in assessed valuation if City annexation occurs.