Memorandum

City of Lawrence

Legal Department

 

TO:

David L. Corliss, City Manager

 

FROM:

Toni Wheeler, Director of Legal Department

 

C:

Diane Stoddard

Roger Zalneraitis

Jonathan Douglass

 

Date:

December 30, 2010

RE:

CID for 23rd & Ousdahl

 

 

 

At its regular meeting on August 24, 2010, the City Commission conducted a public hearing on a petition for the creation of a Community Improvement District (CID) at 23rd and Ousdahl Road submitted by three property owners.  Economic Development Coordinator Roger Zalneraitis recommended the establishment of the CID based upon his analysis of the petition as submitted. 

 

The City Commission closed the public hearing and did not authorize the creation of the CID on August 24, 2010, citing the lack of details concerning the improvements to the Hobby Lobby parcel, as well as storm water management concerns.  The City Commission requested the Developer provide additional information on the plans for the redevelopment of the Hobby Lobby parcel as well as information concerning the effect of the redevelopment on storm water in the vicinity. 

 

In late November 2010, Jim Harpool submitted a letter to City Manager Corliss concerning the CID.  Staff met with Mr. Harpool on December 6, 2010.  Mr. Harpool recommends that the City approve the CID subject to certain terms.  An excerpt from his letter follows:

 

1.   The properties on the north and south side of 23rd would be included.

2.   The approval is specifically subject to the City Commission approving a “Development Agreement” between the City and Developer.

3.   The Development Agreement shall include the following terms and conditions as requirements prior to consideration by the City Commission.

a.       Developer will work with staff and revise plans to include a “bioswale” in the landscaped area adjacent to 23rd Street.

b.       Developer will work with the School District to make a “bioswale” and detention improvements along the north property line of the north side properties and on school district property and such agreement shall be presented with the Development Agreement to City Commission.

c.       Developer and City of Lawrence agree that the Community Improvement District funds generated by the north side properties and the Hobby Lobby property shall be segregated into separate escrow accounts.

d.       CID funds generated by the north side properties may be dispersed upon certification by the City of Lawrence to the Developer for costs expended in conformance with the CID budget.

e.       CID funds generated by Hobby Lobby will be held in escrow until such time as Hobby Lobby submits to the City Commission, for review and approval, detailed plans for additional detention, landscaping, site improvements and architectural enhancements to the existing building in accordance with the submitted and approved CID Budget.

f.        Should Hobby Lobby vacate the building prior to making such improvements, Developer agrees to submit to the City of Lawrence plans for such improvements listed above within 120 days after Hobby Lobby vacates the space.

 

It appears that the proposed additions of “bioswales” referenced in the November 2010 letter were not included in the description of the proposed project or in the estimated cost of the proposed project set forth in the original petition and notice of hearing.  Also the preliminary budget submitted with the petition does not account for the proposed escrowing of sales tax receipts from Hobby Lobby until such time as improvements to the Hobby Lobby site are made, as proposed in Mr. Harpool’s letter referenced above.  Finally, the preliminary budget does not provide for any estimated improvements to the Hobby Lobby site.  Therefore, in staff’s opinion, the developer should submit a revised petition with updated project information, estimated costs of the proposed project and a revised CID budget for analysis and review.  If the Commission desires to proceed with the creation of a CID as proposed by Mr. Harpool, then a public hearing could be scheduled and a development agreement between the parties negotiated for the City Commission’s review and approval.

 

Action Requested:  Direct staff as appropriate.