Memorandum
City of Lawrence
City Manager’s Office
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TO: |
Tom Markus, City Manager |
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CC: |
Diane Stoddard, Assistant City Manager Casey Toomay, Assistant City Manager |
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FROM: |
Britt Crum-Cano, Economic Development Coordinator |
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DATE: |
November 1, 2016 |
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RE: |
City Commission Public Hearing: 826 Pennsylvania Street IRB and NRA Request |
Project & Request Overview
Williams Management LLC is requesting a 10-year, 85% Neighborhood Revitalization Area (NRA) rebate and an Industrial Revenue Bond (IRB) sales tax exemption on construction materials and remodeling labor to support the redevelopment of the existing historical building, located at approximately 826 Pennsylvania Street in the East Lawrence Historic Warehouse District, into a mixed-use, commercial and residential project.
The project is anticipated to add:
· Over 28,000 square feet of finished commercial and residential space (3 floors + basement)
· 14 residential rental units, two of which will be set aside for affordable housing over a 30-year period
· 33 new on-street angled parking spaces in front of the building
· 11 full-time, permanent positions at an annual average salary of just under $32,500 to support commercial and residential operations
Williams Management LLC is requesting the City, Douglas County and USD 497 participate in the NRA program. The City, County, and School District individually decide their participation in the NRA and each will conduct a public meeting to consider the request. The IRB sales tax exemption is considered only by the City. (Scheduled meetings are shown on the attached request process calendar.)
Actions to Date
At their July 5, 2016 meeting, the City Commission referred the request to staff for analysis, and referred the request to the Affordable Housing Advisory Board and Public Incentives Review Committee for review and recommendation.
Analysis
City Staff has completed a cost-benefit analysis in accordance with the City’s NRA policy issue. Additionally, as was discussed in July, the City retained the services of National Development Council (NDC) to perform a gap analysis (“but for”) of the proposal in order to ascertain whether the project required a subsidy and if so, what is the identified gap to make the project viable. The technical report is included as an attachment at the end of this memo.
October 10, 2016: Affordable Housing Advisory Board (AHAB) Review
At their October 10, 2016 meeting, AHAB reviewed the project’s affordable housing component and voted to recommend the project to the City Commission. Motion passed unanimously, 7 to 0.
Draft minutes of the AHAB meeting are attached at the end of this memo.
October 18, 2016: City Commission Referral
At their October 18, 2016 meeting, the City Commission referred the revised request and analysis to PIRC for review and recommendation. A public hearing date was set for November 1, 2016 for the City Commission to consider the request.
Request Processing Calendar
A draft request processing calendar is included as an attachment at the end of this memo. The below meetings are tentatively scheduled for consideration of this request:
November 1, 2016: Public Incentives Review Committee review of request & recommendations
November 1, 2016: City Commission public hearing to receive PIRC recommendation and consider request
November 2, 2016: County Commission to receive PIRC recommendation and consider request
November 14, 2016: School Board to receive PIRC recommendation and consider request
November 15, 2016 City Commission final action on request
City Commission Requested Action
Receive request from Williams Management LLC for a Neighborhood Revitalization Area (NRA) and Industrial Revenue Bond financing for a mixed-use project at 826 Pennsylvania Street.
Receive recommendations from the Public Incentives Review Committee and the Affordable Housing Advisory Board.
Conduct a public hearing on the establishment of a Neighborhood Revitalization Area (NRA) at 826 Pennsylvania Street. Consider adopting on first reading, Ordinance No. 9304, establishing the revitalization area and approving the NRA plan, and consider adopting Resolution No. 7174, authorizing Industrial Revenue Bond (IRB) financing for the purpose of accessing a sales tax exemption on project construction materials.
List of Attachments: 826 Pennsylvania Street NRA