Memorandum

City of Lawrence

City Manager’s Office

TO:	David L. Corliss, City Manager
FROM:	Diane Stoddard, Assistant City Manager Britt Crum-Cano, Economic Development Coordinator
CC:	Cynthia Wagner, Assistant City Manager
Date:	October 19, 2011
RE:	Consideration of Revisions to the City’s Transportation Development District, Community Improvement District and Neighborhood Revitalization Act Policies

Background:

The City Commission has had several discussions expressing interest in clarifying certain elements of the City policies on Transportation Development Districts (TDDs), Community Improvement Districts (CIDs) and Neighborhood Revitalization Act (NRA). 

The Commission discussed this topic at its August 23, 2011 and October 18, 2011 meetings.  At the meetings, the City Commission provided general direction regarding changes to the policies.  As a result of the discussion, staff has completed draft revisions to the policies as outlined below.  Based upon the direction provided at the October 18, 2011 meeting, staff added some further refinement to the language regarding signage for the TDD and CID policies and also added a provision to each of the three policies regarding consideration of the applications based upon its merits without regard to the applicant.  Regarding the signage language, staff suggests:

“This project made possible by {Community Improvement District or Transportation Development District} Financing.  Additional {Community Improvement or Transportation Development} District sales tax of ___% collected here.”

Transportation Development District (TDD) policy:

· Added signage requirement

· Added “but for” requirement

· Changed the policy so that TDD funding can only be used for infrastructure the City would not normally require

· Added provision indicating that the application would be considered on its merits without regard to the applicant (Section 3.5)

Community Improvement District (CID) policy:

· Added signage requirement (Section 7)

· Added “but for” requirement

· Requires an applicant to meet a majority of multiple eligibility criteria

· Included a provision requiring the establishment of a cap on the amount of sales tax that can be collected, corresponding to the needs set forth by the project

· Changed the policy to restrict CID revenue to financing public infrastructure or allow financing of all/part of private infrastructure if it goes beyond what the City requires and is exterior only (e.g. enhanced landscaping or exteriors)

· Changed the policy to restrict its application to redevelopment (in-fill projects)

· Added provision indicating that the application would be considered on its merits without regard to the applicant (Section 4.6)

Neighborhood Revitalization Act policy:

· Changed the policy to establish the typical NRA rebate amount at 50% rebate on the incremental taxes collected and a ten year term; these amounts may be increased if appropriate justification is provided in the “but for” analysis

· Tightened the eligibility criteria by requiring that a majority of the criteria be met to qualify for the NRA

· Changed the policy to require PIRC review

· Clarified the policy to make benefit/cost analysis mandatory

· Added “but for” requirement

· Added provision indicating that the application would be considered on its merits without regard to the applicant (Section 5.7)

Requested Action:

The City Commission is requested to adopt the three new policies, if appropriate.