CITY COMMISSION AGENDA ITEM

Department:	City Manager’s Office		Commission Meeting Date:  12-19-2017
Staff Contacts:	Britt Crum-Cano, Economic Development Coordinator
Requested Action:
Adopt on first reading, Ordinance No. 9431, authorizing the issuance of Industrial Revenue Bonds, in the amount of $5,000,000, for the purpose of accessing a sales tax exemption certificate for the Boys and Girls Club Center for Great Futures Project.
Executive Summary:		The Boys and Girls Club of Lawrence is constructing a 17,433 square foot Center for Great Futures project as an addition to the College and Career Center at 2910 Haskell Avenue in Lawrence, Kansas, to accommodate a larger teen facility for expanding services to middle- and high-school students.  At their November 21, 2017 meeting, the City Commission approved Resolution of Intent No. 7230 to issue Industrial Revenue Bonds (IRBs) for the Center for Great Futures project.   The next step required in the IRB process is the authorization of the issuance of the bonds through adoption of an ordinance.
Strategic Plan Critical Success Factor		Collaborative Solutions
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.
Attachments:		IRB Resolution of Intent No. 7230 Ordinance No. 9431

Reviewed By: (for CMO use only)

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