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: June 17, 2010
RE: Discussion of Changes to CID Policy
The City Commission conducted a study session on May 24th to review the Community Improvement District (CID) resolution passed on May 11th and discuss potential changes to the policy (available here). Based on that discussion and subsequent communication, the following three items appear appropriate for CID Policy discussion:
1) additional language related to retail;
2) a super majority vote;
3) signage at stores within CIDs that collect special sales taxes.
The following memo discusses each item in more detail.
Additional Language Related to Retail
A member of the Public Incentives Review Committee, Dennis “Boog” Highberger, contacted staff with a request to modify the retail language in the Criteria section (Section Two) of the report. Mr. Highberger noted that PIRC requested language that mirrored the retail language in the newly-approved Industrial Revenue Bond (IRB) policy. Specifically, the IRB policy speaks of attracting “exceptional and unique” retail to Lawrence. Staff inadvertently left this language out of the CID Resolution passed on May 18th. If the CID policy is update, city staff believes that adding this language to the retail criteria would more accurately reflect the desire of PIRC.
Supermajority Vote
The City Commission inquired into the feasibility of a super majority vote. Currently, a super majority requirement would require either four or five of the five City Commissioners to vote in favor of a proposal in order for it to be enacted. Most resolutions or ordinances require a simple majority to enact.
If the City Commission wishes to add super majority language to the CID resolution, it should be clear whether this super majority is required for CIDs financed only by special assessments. Per state law, a CID may be financed either by special assessments or a special sales tax within the District. Since the principal concern expressed by the City Commission has been over public knowledge of paying special sales taxes, there does not appear to be a need for a super majority vote for a CID that is financed only by special assessments.
If a super majority vote is desired by the City Commission, staff recommends the following language be added to the “Process” section (Section Four) of the CID resolution. This language is used in the Kansas Constitution for the adoption of charter ordinances, which also requires a super majority:
“Applications requesting to finance all or a portion of a CID with a special sales tax shall only be approved by a two-thirds vote of the members-elect of the governing body of the City.”
Signs for Special Sales Taxes
Members of the City Commission have also discussed the possibility of signs within a CID, if the CID is financed with a special sales tax. Generally, the signs would announce to the public that a special sales tax is levied within a particular store, as well as the rate of that special sales tax.
The City Commission should also consider whether to require signage for all special sales tax districts in the City. This may include Transportation Development Districts (TDDs) (policy available here), or other districts that may in the future contain a sales tax rate that differs from the Citywide sales tax rate.
Staff recommends that if the City Commission supports signage of this type, possible resolution language could be:
“Any business that levies a special sales tax within a CID must notify customers of the special sales tax with at least one sign located at the primary entrance. The size of the sign shall be eight inches by eight inches or larger. Each sign shall meet the following requirements:
a) the background shall be white;
b) the sign shall read “Community Improvement District sales tax of ___% collected here.” The CID special sales tax rate shall be posted as a percentage. For example, if a special sales tax of 1% is levied in a CID, the sign shall read “Community Improvement District sales tax of 1% collected here”;
c) the font for the sign must be 36 points or larger;
d) each sign shall be displayed in a manner that makes the sign reasonably likely to come to the attention of persons entering the premises; and
e) signs which become illegible for any reason must be immediately replaced.”
A sample of 36 point fonts is included in an appendix.
Requested Action
Direct Staff as appropriate related to any changes desired by the City Commission for the existing CID policy, and TDD policy.
Appendix
Sample Fonts in 36 Point Size
36 point Tahoma
36 point Times New Roman
36 point Arial
36 point Calibri
36 point Garamond