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CITY COMMISSION AGENDA ITEM |
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Department: |
City Manager’s Office |
Commission Meeting Date: July 11, 2017 |
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Staff Contacts: |
Diane Stoddard, Assistant City Manager Thomas M. Markus, City Manager Britt Crum-Cano, Economic Development Coordinator |
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Receive reconsideration request from Vermont LLC for economic development assistance, under the Neighborhood Revitalization Area Policy in place at the original time of application, to support a mixed-use development at 815 Vermont Street. |
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Executive Summary: |
Vermont LLC is requesting reconsideration of a 10-year, 75% Neighborhood Revitalization Area (NRA) rebate and an Industrial Revenue Bonds (IRB) sales tax exemption on construction materials to support the development of two vacant parcels, located at approximately 800-815 Vermont Street in the Downtown Lawrence business district, into a mixed-use, commercial and residential project.
This request was originally considered in December 2016 by the City Commission, but did not proceed. The Applicant is requesting reconsideration given the City did not have an economic development policy in place at the time that addressed affordable housing requirements (The new policy, adopted January 2017, specifies affordable housing requirements.) and the Applicant is now proposing removal of any personal residence within the project from participating in receiving NRA rebates.
Project parameters have not changed since the original request, including those of the affordable housing unit the Applicant will provide. However, project expense and revenue assumptions have been revised to reflect current real estate market and property tax conditions.
In addition, the Applicant is requesting the project be considered under the original fee schedule that was in place at the time the project was originally considered and allow the original dedication of one affordable housing unit for this project, since current policy does not address rounding when the required set-aside percentage equates to a partial unit.
Requested Actions: At the July 11, 2017 City Commission meeting, the Applicant will present the reconsideration request. The City Commission to decide if they wish to pursue the request. If the project reconsideration is to proceed, the City Commission to determine:
· If the project will be considered under the Neighborhood Revitalization Area Policy in place at the original time of application, allowing the fee schedule that was in place at the time the project was originally considered and the acceptance of the original dedication of one affordable housing unit for the project. · Refer request to PIRC for review and recommendation and set a public hearing date for September 19, 2017 on proposed NRA and Revitalization Plan.
Next Steps: If the request proceeds, the below meetings have been tentatively scheduled:
TBD: Public Incentives Review Committee to review request and provide recommendation to City, County, and USD 497 School Board Sept. 19, 2017: City Commission public hearing to receive PIRC recommendation Sept. 25, 2017: School Board to receive PIRC recommendation and consider request Sept. 27, 2017: County Commission to receive PIRC recommendation and consider request October 3, 2017: City Commission final action on request |
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Strategic Plan Critical Success Factor |
Economic Growth |
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Fiscal Impact (Amount/Source): |
Current benefit-cost results show a City ratio of 1.82 (for every $1 of public investment, a $1.82 is received in public benefit) and a County ratio of 2.72 (for every $1 of public investment, $2.72 is received in public benefit). There are no additional costs anticipated to the state or school district due to this project.
Fiscal impact is anticipated to be positive as currently vacant parcels generate very little tax revenue compared to taxing revenues anticipated to be received from the finished project, even after incentives are provided. |
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Attachments: |
Revised Applicant Request Letter and Updated Application 2016 Project Technical Report and NDC Analysis (original report) |
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Reviewed By: (for CMO use only) |
☐TM ☒DS ☐CT ☐BM |
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