Memorandum
City of Lawrence
City Manager’s Office
TO: David L. Corliss, City Manager
CC: Diane Stoddard, Assistant City Manager
FROM: Corey Mohn, Economic Development Coordinator
DATE: July 7, 2011
RE: 2010 Abatement Report
Overview
On June 30, 2011, City staff delivered the 2010 Abatement Report to the Public Incentives Review Committee (PIRC). This is an annual report that reviews the progress of companies receiving tax abatements from the City of Lawrence. The 2010 report focused on abatements received by five companies: Allen Press, Amarr Garage Doors, DST Systems, PROSOCO, and Reuter Organ Company.
Executive Summary
In summary, the five companies subject to this report have invested over $20 million in real and personal property as a result of the tax abatements received. There have been 259 full-time employee additions from abatements, meeting 82% of projections. This does not include 222 part-time employees hired during this time. Full-time employment has likely lagged projections due to the economic downturn. The average wage of the full-time hires is $35,000 which is above the City’s average wage.
Compliance
Compliance rules vary by project as each is subject to a different ordinance or performance agreement. Per the City’s most recent Abatement Policy, compliance factors include:
Based on the City’s Abatement Policy, the abated companies subject to these compliance measures meet the standard to receive 100% of their abatement for 2010.
Actions by PIRC
The PIRC accepted the 2010 Abatement Report on a 6-0 vote with one abstention. There was a brief discussion on the report, and this was recorded in the draft PIRC minutes. The PIRC also reviewed incentive requests for projects at 9th and New Hampshire and 27th and Iowa, and reports on those projects will be provided to the City Commission at a future meeting.
Recommendation
Staff recommends the City Commission accept the 2010 Abatement Report.