Memorandum

City of Lawrence

TO:

Mayor and City Commissioners

FROM:

City Manager David L. Corliss                            

Date:

August 10, 2011

RE:

Next steps for development for Farmland property

 

Background

The City finalized the acquisition of the former Farmland Industries property on September 29, 2010.  The City Commission approved a recycling/demolition contract on December 21, 2010 with demolition to occur in 2011.   The recycling/demolition work is still proceeding.  Staff is also proceeding to develop the required Remedial Design/Remedial Action (RD/RA) Plan and work with other city departments to facilitate environmental remediation of the property.  As part of the 2011 budget, limited funding of $1 million in general obligation bond authority and $2 million in special assessment authority was included in the budget to begin the work of planning, design, and construction of infrastructure for the development of a business park.  The primary purposes behind the acquisition of the former Farmland property were: 1)   successfully manage the timely remediation and clean-up of the property when no private sector interests appeared willing to undertake this responsibility; and 2) provide additional space for industrial/business uses with a main focus on primary job and tax base creation.

 

Remediation Status

Recycling/demolition continues to move forward on the site with the following structures already razed (refer to the attached map for structure locations): 

The administration & technical services building (1), guard house (3), ammonia plant control building (5), electrical shop (6), fuel storage tanks (10, 11, and 12), ammonia control building (31), demineralizer storage tank (36), ammonia recompression pump building (56), compressor building (57) have all been demolished.  Most of the boiler house (8) has been demolished with the process tanks being repurposed locally by MCM Concrete as material/cement storage vessels.  The large CO2 tank (62) was removed from the site on April 22, 2011.

 

A design is currently underway to replace and relocate the aging electrical service throughout the site.  The design process is a collaborative effort between staff and Westar Energy.  The new service will bring power from 15th Street and the East Hill Business Park to operate the environmental remediation pumps necessary to move collected surface and ground water.  The new design will also consider power line placement for the future development of the site.

 

Numerous reports are scheduled to be submitted to the Kansas Department of Health and Environment (KDHE) throughout the year.  The reports most recently submitted to KDHE, were the quarterly Performance Evaluation Report (PER #52) and the Annual Closure Report submitted on March 25, 2011 and April 7, 2011 respectively.

 

Examination of Rail Spur

City staff has contacted BNSF railroad representatives and private rail consultants to examine possible use of the rail spur which is part of the former Farmland property.   Additional review of possible uses is on-going.

 

Water rights

As part of the acquisition of former Farmland Industries assets, the City acquired Water Right No. 9,391.  City staff has worked with Division of Water Resources representatives in recent months to review the water right file and confirm the validity of the water right.  As noted below, staff recommends the retention of engineering consultant services to best analyze the possible use of these water rights (approximately 1.2 billion gallons/year).   Because of the seniority of this water right, there has been area interest in the possible sale of the water to area property owners. 

 

Next Steps on Infrastructure

City staff recommends that the City Commission adopt the necessary ordinance and resolution for the 2011 budgeted $1 million debt issuance.  Approximately $150,000 will be devoted to the master planning effort which will include extensive survey work, platting and conceptual design work for the infrastructure for the entire site.  The remaining $850,000 will be devoted to actual construction plans and construction for the initial phases on the site.   This will allow for several key steps:  retention of consulting engineers and associated consultants to assist in the preparation of necessary infrastructure master planning (platting, road/water/sewer design, etc.), funding for traffic signal installation at 23rd and O’Connell and road improvements to the north of this location.   With the infrastructure master plan in place, the City Commission will be asked to establish a special assessment benefit district for the construction of an east-west road from the former Farmland property to Greenway Circle in East Hills Business Park.  Sanitary sewer, storm sewer, waterlines, private utility connections, etc. would be part of the design and construction of these facilities.   Staff believes that this initial infrastructure improvement can be phased-in over time and would provide an initial framework for pad-ready sites for future business/industrial locations.   The connection to Greenway Circle in East Hills Business Park has several advantages:  opens up additional property, including property owned by Douglas County, for business/industrial sites; and provides an additional point of access to East Hills Business Park.  Access to East Hills Business Park at a lighted traffic signal (the proposed O’Connell and 23rd Street signal) is viewed as providing an additional access point to the existing business park.   The exact location and alignment of this east-west road but it will located on property titled to either the City or Douglas County and would not encroach on other property.

 

The exact alignment and timing of these infrastructure improvements is subject to additional analysis and City Commission determination.  Additionally, the re-opening of the 19th Street access to the former Farmland site should also require the analysis of improvements to 19th Street between the Farmland property and Harper Street.   Staff believes that the design of the infrastructure should also include several important values which are important to Lawrence, including design which will include facilities enhancing pedestrian and bicycle traffic and other complete street values.  Staff has contacted the Brook Creek Neighborhood Association about these concepts and plans to actively engage adjacent property owners and neighborhood associations in the development plans for the property.

 

Next Steps on Land Use Planning and Marketing

The City annexed the 448 acres of the former Farmland property.  The property still contains the County zoning designations.  Initiation of appropriate zoning of the property should be included in the proposed master planning of the property as recommended below.  Additionally, infrastructure design should conduct concurrently the development of a master plan for the property which outlines the appropriate platting of the property.   This planning needs to be accomplished in a manner which provides the City with the maximum flexibility for possible future interests and ownership will also ensuring that the necessary land use and platting requirements are in place for timely approvals as interested business/industry consider locating at this site.   Staff believes that the master planning process should involve a number of interested stakeholders to ensure attention to a number of interests, including area neighborhood interests, Chamber of Commerce, Douglas County,   Kansas Department of Commerce, Kansas City Area Development Council, Lawrence-Douglas County Bioscience Authority, and East Hills businesses, to name just a few entities and individuals who can provide valuable input in the planning process.

 

Seeking Additional Assistance

As part of the master planning process, staff plans to seek grant opportunities from transportation, economic development, and Brownfield redevelopment areas.

 

Recommendation:

City staff recommends that adoption of the following funding resolutions to provide funding for the initial steps for the project, and authorization to proceed with solicitation of planning services that will assist with short and long term planning for the property.

 

Adopt a Resolution and Ordinances authorizing $1 million in general obligation bond authority for the improvement of traffic signalization at O’Connell and 23rd Street, and the extension of O’Connell north of 23rd Street, necessary and related water, sanitary sewer, storm sewer and other utility improvements, and the master planning of the former Farmland property.

 

Authorize staff to distribute a request for proposals for planning and engineering services associated with the master planning of the former Farmland property, and design of necessary public improvements to the property.

 

Authorize staff to distribute a request for proposals for planning and analysis of the City water right (Water File No.  9,391).