Memorandum
City of Lawrence
City Manager’s Office
|
TO: |
Diane Stoddard, Interim City Manager |
|
CC: |
Casey Toomay, Assistant City Manager |
|
FROM: |
Britt Crum-Cano, Economic Development Coordinator |
|
DATE: |
December 30, 2015 |
|
RE: |
Special assessments on VenturePark custom parcel for Menard, Inc. |
Menard, Inc. is proposing to purchase 90+ acres at Lawrence VenturePark (LVP) for $794,329. The company will also be paying $1,084,018 to cover the negotiated amount of estimated special assessments on the parcel over the 10-year assessment period. The company is proposing a cash transaction, with both the land purchase and special assessments prepayment amount paid at closing.
Market value for land was determined by appraisal.[1] Estimated special assessments were also based on the property appraisal, which contained the best available assessment expense information at the time of negotiations.
The attached parcel map shows property areas that make up the proposed Menards property. The Menards parcel is a combination of areas that were intended to be marketed to park tenants and a portion of areas that were originally intended for the City to keep for greenway space, detention pond and storage tank areas, etc. In other words, Menards will be purchasing some property that was originally going to be assessed in full to the City. It is the City’s intention to prepay any special assessments attributed to City areas within the Park as these were expenses the City would have born on property that would likely have never been developed.
Again, the special assessment amount estimated for the Menards parcel was based on the best available expense estimates at the time of negotiations. Since that time, final special assessments have been determined. Below is a breakout of final special assessment amounts by parcel area. (For visual reference, see the parcel map.)
|
Menards: Custom Parcel in Lawrence VenturePark |
|
|||
|
Area |
Street |
Sewer |
Total |
|
|
Lot C1, Less Area D & E |
$891,924.39 |
$252,528.14 |
$1,144,452.53 |
|
|
Area B |
$172,988.60 |
$0.00 |
$172,988.60 |
Storage tank & detention ponds |
|
Area C |
$5,864.97 |
$0.00 |
$5,864.97 |
Greenway |
|
Total Special Assessment
|
$1,323,306.10 |
|
||
The following are charges due from both the City and Menards for the custom parcel, based on negotiated amounts, final assessment expenses, and parcel areas originally intended to be held by the City.
|
Total SA for Custom Parcel |
$1,323,306.10 |
|
Amount of SA to be Paid by Menards |
$1,084,018.00 |
|
Amount of SA City to Cover |
$239,288.10 |
To administratively process the special assessment, so that there will not be any special assessments certified against this property, as per State statute requirements, Ordinance No. 9192 will specify that Menards will prepay to the City assessments equal to $1,084,018.00, and the City will prepay on Menards’ behalf the amount of $239,288.10.
In order for the City to finance the $239,288.10 of project costs, as originally anticipated by the City, Ordinance 9192 also authorizes the City to issue general obligation bonds.