DRAFT

City of Lawrence

Public Incentives Review Committee

December 3, 2010

MEMBERS PRESENT:         Dennis Highberger, Cindy Yulich, Brad Burnside, Brenda McFadden, Aron Cromwell and Mayor Mike Amyx

MEMBERS ABSENT:           Mike Gaughan and Scott Morgan

STAFF PRESENT:              Diane Stoddard and Roger Zalneraitis

PUBLIC PRESENT:            Beth Johnson, Matt Gough

Mayor Amyx called the meeting to order at 4:30 p.m.

Zalneraitis provided an update to the committee.  He indicated that Mr. Gough had been appointed as Plastikon’s representative related to the incentives and that he had confirmed that the original wages included benefits.  Zalneraitis also updated the group that Plastikon will not be seeking Industrial Revenue Bond financing.

Zalneraitis stated that the correct average wage is $46,875 excluding benefits, and $12.26/hour excluding benefits for the low wage.  Mr. Gough clarified that the average wage for employees in manufacturing would be in the $15 range, higher than the lowest wage.

Zalneraitis also shared a draft performance agreement with Plastikon.  The agreement is a draft and may be changed as is subject to approval by the City and County Commissions.

Zalneraitis highlighted the benefit-cost model changes reflecting the wages without benefits.

McFadden asked about net revenues.  Zalneraitis clarified that related to property and sales tax revenue.

Highberger asked about the 100% of expenditures being spent in Lawrence.  Zalneraitis indicated there was not an answer to that question.  Highberger asked if that had a large effect on its benefit cost model.  Zalneraitis indicated it did not.  Highberger thought that his may make a difference.  Zalneraitis responded that he could run the model several ways.  McFadden asked about expenditures.  Gough thought the majority of that was payroll.  Zalneraitis said he would follow up on this.

Vice-Mayor Cromwell asked about whether this was an error.  Zalneraitis indicated that he thought there was a communication error.  Beth Johnson said that they were providing wage numbers to three different entities and believed there was just a misunderstanding.  Vice-Mayor Cromwell indicated a double check prior to this stage.

Burnside asked about the definition of operating expenditures.  It was suggested that this be improved in the application form.

Mr. Gough also informed PIRC that Plastikon was working on the designation of its entities to operate in Kansas.  They will likely form a wholly owned subsidiary in Kansas.  He wanted the group to be aware that there name may change on the performance agreement and that the lease may have a name on it of a subsidiary of Plastikon Industries.

Yulich made a motion to recommend approve of the incentive for the Plastikon project, as amended.  Seconded by Highberger.  Motion passed 6-0.

Vice-Mayor Cromwell made a motion to adjourn the meeting.  Seconded by McFadden.  Motion passed 6-0.

The meeting was adjourned at 4:46 p.m.