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CITY COMMISSION AGENDA ITEM |
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Department: |
City Manager’s Office |
Commission Meeting Date: 11-21-2017 |
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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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Consider adopting Resolution No. 7230, authorizing the issuance of up to $5,000,000 in industrial revenue bonds for the Boys & Girls Club Center for Great Futures project, to obtain a sales tax exemption on project construction materials. |
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Executive Summary: |
On November 2, 2017, staff received an application from the Boys and Girls Club of Lawrence requesting Industrial Revenue Bond (IRB) financing to access a sales tax exemption on project construction materials for the development of the Center for Great Futures. The Center will be an addition to the College and Career Center located at 2910 Haskell Avenue in Lawrence, Kansas.
The Boys & Girls Club wishes to build a larger teen facility to expand services to middle- and high-school students. The addition will provide approximately 17,433 square feet for age-appropriate supervision and programming and space. Land is being provided by the school district for the Center. It is anticipated the new space will be shared between the Club and school district, eliminating the need to duplicate space. Project construction is anticipated to start this year and be completed in time for the start of the 2018 school year.
At their November 7, 2017 meeting, the City Commission referred the request to the Public Incentives Review Committee (PIRC) for review and recommendation. PIRC reviewed the request at their November 14, 2017 meeting and voted 5-0, to recommend City authorization of IRB for the project so it can obtain a sales tax exemption on construction materials.
The request is now ready for the City Commission to receive PIRC’s recommendation and, if appropriate, vote to authorize IRB Resolution of Intent No. 7230. Approval of the resolution of intent will allow the State to issue a Project Exemption Certificate (PEC) for exempting sales tax on the project’s construction materials. |
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Strategic Plan Critical Success Factor |
Collaborative Solutions |
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Fiscal Impact (Amount/Source): |
The costs of incentives are restricted to a sales tax exemption on construction materials for the project. Assuming a total project cost of $4,520,000 and using the most recent (July 2017) Kansas Department of Revenue countywide sales tax ratios, staff estimates the total value of exempted sales taxes to be $181,000.
Of this total exemption, the City is estimated to forego a little over $42,000 in sales tax revenues and the County is estimated to forego a little over $7,000 in sales tax revenues. The State would forego approximately $130,000 in sales tax revenues. |
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Attachments: |
Applicant Request Letter and Application Draft 11-14-17 PIRC Meeting Minutes |
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Reviewed By: (for CMO use only) |
☐TM ☒DS ☐CT ☐BM |