City of Lawrence

Public Incentives Review Committee

March 29, 2011 meeting minutes

MEMBERS PRESENT:	Mike Amyx, Aron Cromwell, Dennis Highberger, Scott Morgan, and Cindy Yulich
MEMBERS ABSENT:	Brad Burnside, Mike Gaughan
STAFF PRESENT:	David L. Corliss, Diane Stoddard, and Corey Mohn
PUBLIC PRESENT:	Beth Johnson, Hank Booth, Tom Kern, Chad Lawhorn, Mike Treanor, Bill Fleming, and Chris Cunningham

Mayor Amyx called the meeting to order at 4:00 p.m.

Mayor Amyx introduced Corey Mohn, Economic Development Coordinator for the City of Lawrence who recently replaced Roger Zalneraitis.

Vice-Mayor Cromwell moved to approve the minutes from the November 3, 2010 meeting, Ms. Yulich seconded the motion and it passed 5-0.

Diane Stoddard, Assistant City Manager, gave a presentation with background on Neighborhood Revitalization Areas (NRA). Ms. Stoddard discussed the draft NRA policy and went over the statutory criteria, which includes items regarding public safety and welfare, blight/dilapidated structure, and historic or architecturally significant structures or areas.

Mayor Amyx asked if all three criteria need to be met, or just one criteria and Ms. Stoddard indicated that just one criteria needed to be met to qualify.

Ms. Stoddard reviewed the request from Treanor Architects to relocate its headquarters to 1040 Vermont. This relocation would bring approximately 57 professional jobs to the community and the site has been vacant for over a decade. Treanor would invest approximately $2 million into rehabilitating the building and has requested that an NRA be established in order to rebate a portion of the property tax. Treanor has also requested to purchase 50 ten-hour parking passes at $195 each at a fixed rate for the next ten years.

Ms. Stoddard then went over the proposed rebate schedule. There is a one-time administrative fee of 2.5% of the first year’s increment, equivalent to approximately $1500, that would go to Douglas County.

Ms. Stoddard went over a cost benefit analysis that Roger Zalneraitis started before he left employment with the City. The cost benefit ratio is 2.09 for the City, 3.71 for the County and a ratio was not calculated regarding USD 497. Vice-Mayor Cromwell asked if it was based on five percent (5%) to the county and Ms. Stoddard indicated that it did not include administrative fees that would go to the county.

Mr. Morgan asked if the mill levies in the analysis are at a flat mill levy and Ms. Stoddard replied yes.

Ms. Stoddard indicated that the purpose of the meeting is for the Public Incentives Review Committee to review the draft policy and make recommendations to the City Commission regarding the policy and the Treanor request.

Ms. Stoddard suggested having an agreement between all three entities indicating participation and she will have a draft agreement soon. Mr. Morgan asked what the timeline is. Ms. Stoddard indicated that Treanor would like to move as quickly as possible and the current calendar has the NRA in place by the end of April. Vice-Mayor Cromwell asked if the City Commission would be hearing this item without official letters of support from the county and school district and Ms. Stoddard indicated yes. Mr. Corliss indicated that the City Commission could conduct the public hearing and then request additional information and then make a ruling at a later date.

Mr. Corliss informed the committee that there is a public meeting scheduled for March 30 at 5:00 regarding the parking in the 1000 block of Vermont Street, which is separate than what the committee is hearing today and that the City Commission will consider it separately.

Mayor Amyx asked about the statute that discussed the assessed property value and why land and structure had to be separate. Ms. Stoddard indicated that she did not know, but that her figures about the base tax level included them together.

Mr. Highberger asked about the difference between the NRA and a TIF (tax increment financing) project. Ms. Stoddard indicated that a TIF can only be utilized to cover public improvement costs related to the project. Mr. Fleming stated that this project is much simpler than a TIF and is a one-time deal. Mr. Highberger asked about a CID (Community Improvement District) and Mr. Corliss indicated that a CID institutes an additional sales tax and an NRA does not, it only applies to property tax. Mr. Highberger asked why this project qualifies for an NRA and could anyone apply for an NRA. Vice-Mayor Cromwell indicated that it meets the criteria established in the draft policy.

Mr. Corliss indicated there has been no request for public improvements for this project and the only request is for the parking passes. Mayor Amyx asked about whether there should be a dollar threshold on projects. After much discussion regarding a threshold for NRA’s, Mr. Corliss suggested a 1.25 minimum cost benefit ratio be added to the criteria and that the committee look at the policy again in 2012 for the purpose of considering whether to establish a dollar threshold.

Mr. Highberger stated he is a representative of the Sustainability Advisory Board and was concerned about public parking and didn’t believe that the City should grant the request regarding the ten year locked rate of $195 per parking pass. Mr. Corliss stated to keep in mind that we are not reserving parking spaces for the employees, just insuring a fixed rate for the parking passes and that it really isn’t much of an incentive. Mayor Amyx asked if the committee should make a recommendation on the parking passes and Mr. Corliss indicated that the committee is to review tax abatement type requests and certain levels of incentives.

Mr. Morgan made a motion to approve the NRA policy with a 1.25 cost benefit ratio/threshold and review the use of the policy in the spring of 2012 and send a favorable recommendation on the Treanor request and to pass on Mr. Highberger’s concerns to the City Commission as reflected in the minutes. Ms. Yulich seconded and the motion passed 5-0.

Meeting was adjourned at 5:09.