CITY COMMISSION AGENDA ITEM

Department:	City Manager’s Office		Commission Meeting Date:  12-20-2016
Staff Contact:	Britt Crum-Cano, Diane Stoddard, Thomas M. Markus
Recommendations/Options/Action Requested:
Consider changes and proposed reorganization of the City’s Economic Development Policies. Adopt Resolution No. 7184, adopting the City of Lawrence Economic Development Policy setting forth the City’s policies and procedures relating to economic development tools and repealing prior policy resolutions, and adopt on first reading, Ordinance No. 9325, repealing sections of the City’s code that are now covered in the Economic Development Policy, if appropriate.
Executive Summary:		Since June of 2015, there has been extensive review and discussion on potential economic development policy changes by the City Commission, Staff, and advisory boards.  At the October 11, 2016 City Commission Study Session, Staff presented a composite feedback matrix and supporting memo summarizing the recommendations from Staff, the Public Incentives Review Committee, Joint Economic Development Council, Affordable Housing Advisory Board, and Douglas County. At the meeting, the City Commission directed Staff to revise economic policies and application as per Staff’s final recommendations. In discussing proposed changes to the various economic development policies with legal staff, it was suggested to streamline the policies into one policy document in order to provide clarity to staff, potential applicants and the public.  The proposed Economic Development Policy provides overarching policy statements about the City’s economic tools in general and then provides a section of the resolution dedicated to each of the tools, outlining processes, fees, procedures and decision criteria.  Previously, the policies for each tool were adopted separately by resolution.  It is proposed that the new Economic Development Policy be adopted by a resolution, which also repeals the prior policies adopted by resolutions.  Additionally, staff is recommending incorporating procedures that were previously adopted in the City code within the Economic Development Policy.  Therefore, an ordinance is proposed which repeals those sections of City code now covered by the Economic Development Policy, maintaining the section in the City code establishing the Public Incentive Review Committee. This revised economic development policy incorporates Staff’s final recommendations and new recommendations as suggested by Legal Staff.  Also incorporated are delinquency disclosure requirements as recommended by the City Manager.  Per recommendations from the City Attorney’s Office, a signed affidavit will be required as part of the application process for disclosing any delinquency status. This affidavit will be drafted later by the City Attorney’s Office and added as an attachment to the application. The Affordable Housing Advisory Board met on Monday, December 12 and had additional discussions on the affordable housing provisions for the economic development policies.  A memo is attached summarizing the AHAB meeting and its revised recommendations on affordable housing.  The language included in the proposed document reflects the October recommendations from AHAB.  Staff has not had a lot of time to review and consider the suggested AHAB changes but it is possible that some of the revised language may not recognize the difference between existing housing stock and new construction.  Additionally, it is likely that the requirements would also add to the project funding gap.
Strategic Goal Area:		Economic Development
Fiscal Impact (Amount/Source):		Application, administrative services, and origination fee changes.
Attachments:		Memo on Economic Development Policy Changes Proposed Economic Development Policy - Updated 12/20/16 Revised Application AHAB 10-10-2016 Memo: Recommendations on affordable housing provisions AHAB 12-12-2016 Minutes (Draft) – Corrected 12/20/16 AHAB  12-12-2016 Memo: Suggested affordable housing requirements Resolution No. 7184 Ordinance No. 9325

Reviewed By: (for CMO use only)

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