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 15, 2016 |
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RE: |
City Commission Meeting: 2nd Reading for 826 Pennsylvania Street NRA Request |
Please see List of Attachments at the end of this memo.
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.
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.
November 1, 2016: PIRC Consideration & Recommendation
At their November 1, 2016 meeting, PIRC reviewed the request and voted to recommend the project, as requested (85% NRA rebate, 10 year period) to the City Commission. Motion passed 4 to 2.
November 1, 2016: City Commission Public Hearing
At their November 1, 2016 meeting, the City Commission received recommendations and voted to authorize a 50%, 10 year NRA for the project. Motion passed 4 to 1.
November 2, 2016: County Commission Consideration and Action
At their November 2, 2016 meeting, the County Commission heard staff presentations, received PIRC recommendations, and discussed the project. One Commissioner recognized the amount of time, money, and effort the developers invested to get the request to this point. It was also pointed out by a Commissioner that with the requested NRA amount and duration, the tax revenues received from the project were substantially greater than if the property was left in its current state.
The County voted to authorize an 85%, 10 year NRA for the project. Motion passed 3 to 0. County Commission minutes are not available at this time.
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 14, 2016: School Board to consider request
November 15, 2016 City Commission final action on request
City Commission Requested Action
Adopt Ordinance No. 9304 on second and final reading, establishing a Neighborhood Revitalization Area at 826 Pennsylvania Street.
Authorize the City Manager to execute the following agreements:
· Neighborhood Revitalization Plan & Performance Agreement between the City and Applicant;
· Cooperative agreement between the City, County and School District on NRA administration; and
· Agreement with the Applicant requiring project affordable housing compliance and reporting over thirty years.
List of Attachments: 826 Pennsylvania Street NRA