Memorandum

City of Lawrence

City Manager’s Office

TO:              David L. Corliss, City Manager

CC:               Diane Stoddard, Assistant City Manager

FROM:          Roger Zalneraitis, Economic Development Coordinator/Planner

DATE:           April 27, 2010

RE:               New Economic Development Policies for Lawrence, KS

The Public Incentive Review Committee (PIRC) met on April 26^th to consider the annual tax abatement report as well three economic development policy proposals that had been made by City Staff.  These policies include: an update to the tax abatement criteria for additional incentives (memo and new policy), an update to the City’s Industrial Revenue Bond (IRB) policy (memo and new policy), and a new Community Improvement District (CID) policy (memo and new policy).  PIRC discussed these policies and recommended the following changes:

1) within the new tax abatement language, adding criteria for what will help define “significant” or “exceptional” wages for a potential project;

2) within the CID policy, creating retail language that mirrors the IRB policy; and

3) within the CID policy, ensuring that 100% of all property owners approve a new district when either private property will benefit, or when a special sales tax will be imposed.

These changes have been made and incorporated into the policies. The policies are as follows:

1) Ordinance 8522- establishes new tax abatement language that says a firm may qualify for higher abatements if they have “exceptional” wages;

2) Ordinance 8523- establishes new IRB policies and guidelines and repeals Resolution 5239, which was the original IRB policy passed by the City in May of 1989, and

3) Resolution 6887- creates a new CID policy for the City.

The attached memos provide further discussion on each item.

Action Requested:

Receive new policies and, if appropriate, adopt on first reading Ordinances 8522 and 8523, and Resolution 6887.