ORDINANCE NO. 8522
AN ORDINANCE OF THE CITY OF LAWRENCE, KANSAS AMENDING SECTION 1-2114 OF THE CODE OF THE CITY OF LAWRENCE, KANSAS PERTAINING TO ECONOMIC DEVELOPMENT AND TAX INCENTIVE POLICY OF THE CITY OF LAWRENCE.
BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF LAWRENCE, KANSAS:
SECTION 1. Section 1-2114 of the Code of the City of Lawrence, Kansas, 2009 Edition, and amendments hereto, is hereby amended to read as follows:
Amount of Tax Exemption.
It shall be the policy of the City to approve a tax abatement for the real property portion of a project if the project meets the requirements set forth in Sections 1-2112, 1-2113 and 1-2114 of this ordinance. In determining the actual amount of tax abatement to be granted to Kansas basic industries that meet the Economic Development Objectives of Section 1-2103 of this Ordinance, the City shall use as a guideline the following basic schedule:
1. up to fifty percent (50%) property tax abatement for ten years on investments greater than $7 million in adjusted 2009 dollars and a minimum of 30 new jobs that meet the wage requirements as outlined in Section 1-2112 (2. to 4.), or
2. if the firm has been on the Douglas County property tax rolls for more than 3 years, up to fifty percent (50%) property tax abatement for ten years on investments greater than $5 million in adjusted 2008 dollars and a minimum of 20 new jobs that meet the requirements outlined in Section 1-2112 (2. to 4.),
3. investments that meet one or more of the following criteria, may receive a property tax abatement that exceeds fifty percent (50%):
(A) a company that has been on the Douglas County property tax rolls for at least three (3) years may receive up to an additional ten percent (10%) tax abatement,
(B) capital investments that exceed $10 million dollars in adjusted 2009 dollars may receive up to an additional five percent (5%) abatement,
(C) projects constructed in compliance with Leadership in Energy and Environmental Design (LEED) criteria may receive up to an additional five percent (5%) abatement for “Certified” or “Silver” certification, and ten percent (10%) for “Gold” or “Platinum” certification,
(D) unique site constraints or construction requirements that make development more difficult and costly may receive up to an additional five percent (5%) abatement,
(E) a project that is seen as a catalyst for future projects in an economic development area of focus for the community, such as the biosciences, may receive up to an additional five percent (5%) abatement, or
(F) a project that is located in a targeted development location as defined by the City Commission, or a site that already has infrastructure in place such as an existing business park, may receive up to an additional five percent (5%) abatement.
(G) a project that is seen as providing exceptional wages given current market conditions, industry norms in Douglas County and other relevant business factors, may receive up to an additional ten percent (10%) abatement.
These criteria are additive. For example, a local firm that invested $15 million in real property and received LEED gold certification on the new facility, may qualify for a property tax abatement of up to 75%. This abatement would include the 50% “Baseline” abatement, plus a 10% adjustment for being a local firm, plus a 5% adjustment for a capital investment exceeding $10 million, plus a 10% adjustment for a LEED gold certification
4. the governing body may vary the amount, maximum, and duration of the abatement provided the net abatement to a business shall not reduce the net tax revenues as would be received pursuant to the above schedules to the local taxing units over ten (10) years.
The abatement term for projects considered under authority of Section 13 of Article 11 of the Kansas Constitution shall begin in the calendar year after the calendar year in which the business commences its operations. The abatement term for Industrial Revenue Bond (IRB) projects considered under authority of K.S.A. 12-1740 et seq. and K.S.A. 79-201a shall begin in the calendar year after the calendar year in which the bonds are issued.
SECTION 2. Chapter 1, Article 21, Section 1-2114 of the Code of the City of Lawrence, Kansas, 2009 edition and amendments thereto, are hereby repealed, it being the intent that the provisions of this ordinance supersede the repealed code provisions.
SECTION 3. If any section clause, sentence, or phrase of this ordinance is found to be unconstitutional or is otherwise held invalid by any court of competent jurisdiction, it shall not affect the validity of any remaining parts of this ordinance.
SECTION 4. This Ordinance shall take effect and be in force from and after its adoption and publication as provided by law.
Adopted this ____ day of May, 2010.
APPROVED:
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Mike Amyx, Mayor
ATTEST:
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Jonathan M. Douglass
City Clerk
APPROVED AS TO FORM AND LEGALITY:
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Toni Ramirez Wheeler, Director of Legal Services