Memorandum

City of Lawrence

City Manager’s Office

TO:	Mayor and City Commissioners
FROM:	City Manager David L. Corliss
DATE:	June 27, 2013
RE:	Rock Chalk Park Recreation Center

As you are aware, the City Commission has previously provided authorization of the multi-party Development Agreement for the Rock Chalk Park development (Ordinance No. 8842 adopted on second reading March 5, 2013) and authorizing the Recreation Center construction contract on May 21 and June 4, 2013.   Since those latest approvals, staff and the other parties and their attorneys, have been working to modify the previously authorized development agreement to reflect the decisions that have been made concerning the construction contract, the infrastructure costs, participation from the Assist Foundation, and other related matters.   Because there are necessary and substantive changes to the development agreement it is appropriate, pursuant to the authorizing Ordinance No. 8842, for the City Commission to again authorize the execution of the revised Development Agreement.

The revised Development Agreement, with attachments, is provided here.

For ease of comparison to the original Development Agreement, a comparison copy indicating new language and stricken old language is provided here.

The major changes reflect the fact that a number of the items contemplated in the original agreement have now occurred – the City has bid and selected a recreation center contractor, engaged and now paying the architects,  recreation center pad site is now complete,  an infrastructure budget has been provided (Exhibit I), etc.    The other major changes reflect the new maximum cap for City expenditures with this project, the new maximum cap is $22.5 million.  See particularly Section 12 of the revised Development Agreement.

The parties have agreed on a closing date of July 10, 2013.  The City will close on the new park property for the recreation center at that time.

Gary Anderson, the City’s special counsel with Gilmore & Bell, will be at the July 2, 2013 meeting to review the revised agreement and respond to questions.

The Kansas University Endowment Association has provided DRAFT copies of the infrastructure construction agreements, a website link to these documents is provided here.

RECOMMENDED ACTION:      Authorize the Mayor to execute the revised Development Agreement, authorize the payment for the property acquisition in the amount of $784,050 and authorize staff to execute all other necessary documents and items related to the development.