Memorandum

City of Lawrence

City Manager’s Office

TO:	Thomas M. Markus, City Manager
CC:	Diane Stoddard, Assistant City Manager Casey Toomay, Assistant City Manager
FROM:	Britt Crum-Cano, Economic Development Coordinator
DATE:	June 29, 2016
RE:	Reconsideration request for Public Assistance: 815 Vermont Street

At the June 7, 2016 City Commission meeting, the Commission heard an assistance request for the 815 Vermont Street project.  The mixed-use project was seeking a 10-year Neighborhood Revitalization Area (NRA) with an 85% rebate provided annually for years 1 through 5 and a 50% rebate provided annually for years 6 through 10. In addition, Industrial Revenue Bond (IRB) financing was being requested in order to receive a sales tax exemption on construction materials.

During the meeting, the Commission conveyed their desire for the project to incorporate affordable housing and asked the property owner, Bob Schumm, to meet with the City Manager to discuss possible options. Mr. Schumm has since met with the City Manager and Rebecca Buford, Executive Director of Tenants to Homeowners.  As per the letter

dated June 22, 2016, he is now proposing the mixed-use project include:

· One, 1-bedroom, fully-finished affordable housing condominium

· The unit will be placed in the Lawrence Community Housing Trust (LCHT) and be managed by Lawrence Tenants to Homeowners.

· The condo will be sold at a reduced price ($95,000), with the developer subsidizing the gap between the sale price and market value.

· Sale of the condo will be subject to buyer income limits as defined through the LCHT program

· The condo will be permanently placed in the Trust, so it remains affordable in perpetuity.

Mr. Schumm is asking the City Commission to allow staff to perform gap analysis on the revised project and to have the analysis sent to PIRC for review and recommendation.

Recommended Action

The City Manager recommends that this project be referred to City Staff for cost-benefit and gap analysis and then sent to the Public Incentives Review Committee for review and recommendation, recognizing that the developer request for IRBs and an NRA may exceed the City Commission’s 50%, 10-year incentive limitation.