Memorandum

City of Lawrence

City Manager’s Office

 

TO:

David L. Corliss, City Manager

 

FROM:

Diane Stoddard, Assistant City Manager

Scott McCullough, Director of Planning & Development Services

 

CC:

Cynthia Wagner, Assistant City Manager

Britt Crum-Cano, Economic Development Coordinator

 

Date:

 

November 2, 2011 (updated 11/08/11)

RE:

Request from Cornerstone Construction Company of Lawrence and Sure Point Medical regarding City owned property north of 2004 E. 23rd Street

 

Please place the following item on the City Commission agenda for November 8. 2011:

 

Receive request from Cornerstone Construction Company of Lawrence and Sure Point Medical regarding City-owned property north of 2004 E. 23rd Street, the southwest corner of the former Farmland tract.  Provide direction to staff, if appropriate. 

 

 

Background:

City staff has received a request from Cornerstone Construction Company of Lawrence, Inc, on behalf of Sure Point Medical, a local mail order diabetes supply company that has grown significantly in the community.  Sure Point is in need of immediate parking to accommodate their rapid growth.  They are currently leasing a building, 1918 E. 23rd Street from Cornerstone Construction.  Effective December 1, they will be leasing a second building, located at 2004 E. 23rd,  currently occupied by Waterfront. Even with the lease of the second building, the company is in need of immediate expanded parking.  They require an additional 30 spaces, as soon as possible, but no later than January 2012.  Additionally, Sure Point Medical has been considering how to obtain future building space, whether through a new building to the north of the 2004 E. 23rd Street location, or as an expansion to that building.  Future planning regarding infrastructure on the Farmland site, now being discussed, may influence these issues. 

 

Discussion:

Staff has been discussing options for the company to expand to the north, upon City-owned property that was part of the Farmland acquisition.  

 

The company is requesting to lease a section of property (see attached map – added 11/08/11), approximately 100 feet by 160 feet, to accommodate this immediate parking need.  Additionally, they wish to have an option to purchase this lease area, as well as a larger contiguous area of approximately 1.5 acres to potentially construct a building in the future, for a total of 2 acres.  These areas are shown on the attached concept site plan, submitted by Cornerstone.  In order to gather appropriate market rate information on the property, the City contracted with Aul & Hatfield Appraisals to conduct an appraisal of the property. 

 

The subject property, as mentioned, is part of the former Farmland site acquisition (see attached aerial map).  This particular area is not known to have any environmental remediation issues, but the Kansas Department of Environment will need to authorize any use of the site per the Consent Order that governs the property.  Additionally, the property has been annexed into the City, but has not yet been zoned.  Also, as the Commission is aware, the City is currently reviewing proposals for a master planning effort on the Farmland tract, which will determine future development of infrastructure and parcels for a business park.  The request from Cornerstone/Sure Point Medical is not believed to be in conflict with any future plans on that portion of the property.  However, the planning issues that will be discussed and resolved as part of the master plan process for the Farmland site may have an impact on how Sure Point proceeds with future building expansion, particularly the availability of sanitary sewer. 

 

Request:

Cornerstone/Sure Point Medical is requesting that the City grant a temporary use of the City-owned property for the purpose of constructing a parking lot.   Due to time constraints, they are requesting that this be allowed prior to any zoning approvals on the property.  Additionally, they are requesting that the parking lot be allowed to be constructed in a temporary manner, not in accordance with City code.  The City code requires that the lot be hard surface, striped, and have lighting and interior/perimeter landscaping. Their concern is that the future City master planning efforts may dictate a change in their building plans, so they are concerned with building a permanent lot that may have to be removed in the near future.

 

Cornerstone/Sure Point Medical is requesting a 3-year land lease on the approximately 0.5 acre area and an option to purchase it and an approximately 1.5 acre tract to the north at the market lease rates and purchase price indicated in the appraisal.  Legal documents will need to be compiled setting forth this agreement.  Additionally, the planning process, including zoning, platting and site planning, will need to be completed within the 3-year time frame. 

 

Recommendation:

There is merit to considering the applicant’s request to waive the Development Code standards and process temporarily in that a local employer has a need for immediate expansion and the city is in a position to aid in the expansion.  The ultimate expansion appears to comply with the intention of the Farmland property to support businesses and this portion of Farmland has little to no environmental constraint.

 

Staff recommends that the City Commission grant the request of Cornerstone/Sure Point Medical to enable a temporary parking lot be constructed contiguous to its building at 2004 E. 23rd Street on City property. City staff recommends that the City enter into an agreement allowing for this arrangement with a land lease and option to purchase agreement, which will require a survey of the property. Additionally, the planning processes will need to be initiated, to include zoning, platting and site planning for the parking lot area.  Staff does recommend that Cornerstone/Sure Point Medical site plan the temporary parking area.  This would provide formal notice to the adjacent properties within 200 feet and allow the city and outside review agencies the opportunity to review the proposal for utility and other conflicts.  This would also provide staff time to draft the necessary legal document.  The agreement will capture the timing of the processes so that they can be completed within the 3-year timeframe.  The legal agreement and certain planning applications will come back before the City Commission for future action. 

 

Suggested Action:

Authorize the City Manager to prepare an agreement with Cornerstone Construction Company of Lawrence/Sure Point Medical to allow for a temporary parking lot, a lease of the parking area and an option to purchase the parking area and a larger contiguous tract, and direct staff to commence the appropriate planning processes to accommodate the temporary parking area and possible future building expansion area.