CITY COMMISSION AGENDA ITEM

Department:	City Manager’s Office		Commission Meeting Date:  11-6-2018
Staff Contact:	Britt Crum-Cano, Economic Development Coordinator
Actions Requested:
Receive the economic development Catalyst program application from Screen-It Graphics of Lawrence, Inc. dba Grandstand Glassware + Apparel to assist with its expansion project at 3840 Greenway Circle in East Hills Business Park and establish November 20, 2018 as the public hearing date to consider a property tax abatement in conjunction with the project.
Executive Summary		In April 2017, the City Commission approved the Catalyst Program, a program aimed at spurring economic development in East Hills Business Park and Lawrence VenturePark.  The City has now received an application from Screen-It Graphics of Lawrence, Inc. dba Grandstand Glassware + Apparel (Grandstand) for participation in the City’s Catalyst incentive program.  The company is requesting a 10-year property tax abatement on a new addition to their existing facility located at 3840 Greenway Circle in East Hills Business Park in Lawrence, Kansas.  Note the company is pursuing a sales tax exemption on construction materials through a State incentive program and will not be requesting Industrial Revenue Bonds (IRB) through the City Company Background Grandstand manufactures and distributes decorated glassware, apparel, and promotional products nationwide and in 12 countries.  Started in 1988 in Lawrence, the company has grown to 218 full-time employees with an annual payroll over $9,000,000.  In 2011, Grandstand purchased the former Sauer-Danfoss building and relocated operations from 2920 Haskell Ave to 3840 Greenway Circle in East Hills Business Park.  At that time, the company received a 10-year, 65% real property tax abatement which will terminate in 2021.  This relocation allowed the company to expand operations by purchasing additional equipment and inventory to align with the increased demand for Grandstand’s products. Proposed Project With increasing product demand, Grandstand is now in need of additional manufacturing and warehousing space. The company is proposing an approximately 112,000 square foot expansion of their current facility located in East Hills Business Park at 3840 Greenway Circle, Lawrence, Kansas.  With this expansion, Grandstand estimates the new space will accommodate up to 50 additional full-time employees over the next ten (10) years and invest in additional equipment to accommodate the company’s continued growth. Construction on the expansion will be on company-owned land and is estimated to start early 2019 and be completed by the end of the same year.  If approved through the Catalyst program, the building expansion would be eligible for a 10-year, 50% property tax abatement (70% if built to LEED Silver equivalency).  This abatement will only apply to the expansion portion of the building and not the main facility.  In addition, approval of a Catalyst abatement on the expansion portion will not affect the original tax abatement on the main facility. City Commission Requested Actions Receive the Catalyst application from Screen-It Graphics of Lawrence, Inc. dba Grandstand Glassware + Apparel; set a public hearing date of November 20, 2018 to consider a request for a 10-year property tax abatement on a new addition to the existing facility located at 3840 Greenway Circle in East Hills Business Park.  Since this is a Catalyst project, the Public Incentives Review Committee does not review or provide recommendation on the request.
Strategic Plan Critical Success Factor		Economic Growth and Security
Fiscal Impact (Amount/Source):		The fiscal impact to the City of the Catalyst Program is positive but the exact amount is unknown until projects are constructed.  Because the program only offers a partial property tax abatement, any new development will result in net positive tax base to the City and the other taxing jurisdictions.
Attachments:		Catalyst Program Eligibility Sheet Application and Request Letter
Reviewed By: (for CMO use only)	☐TM ☒DS ☐CT ☐BM