ORDINANCE NO. 9608

AN ORDINANCE OF THE CITY OF LAWRENCE, KANSAS, EXEMPTING CERTAIN PROPERTY IN THE CITY OF LAWRENCE, DOUGLAS COUNTY, KANSAS, FROM A PORTION OF AD VALOREM TAXATION FOR ECONOMIC DEVELOPMENT PURPOSES.

WHEREAS, Article 11, Section 13 of the Kansas Constitution permits the governing body of any city, by ordinance, to exempt from ad valorem taxation all or any portion of the appraised valuation of all buildings, together with the land upon which such buildings are located, and all tangible personal property associated therewith, used exclusively by a business for the purpose of manufacturing articles of commerce or storing goods or commodities which are sold or traded in interstate commerce for not more than ten (10) calendar years after the calendar year in which the business commences its operations or in which expansion of an existing business is completed;

WHEREAS, the Governing Body of the City of Lawrence, Kansas (the “City”), after conducting a public hearing pursuant to published notice as provided by law, has determined that certain property belonging to 3840 Greenway Circle LLC, a Kansas limited liability company (the “Company”), and used exclusively in the business of manufacturing articles of commerce or storing goods or commodities which are sold or traded in interstate commerce should be granted a tax exemption for economic development purposes; and

WHEREAS, the governing body of the City has previously adopted a resolution making the findings of fact required by K.S.A. 79-251.

NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF LAWRENCE, KANSAS:

SECTION 1. Grant of Exemption. In accordance with Article 11, Section 13 of the Kansas Constitution, and pursuant to K.S.A. 79-251 (collectively, the “Act”), all buildings, or added improvements to buildings, together with the land upon which such buildings or added improvements are located, constituting an approximately 112,000 square foot addition to an existing facility located at 3840 Greenway Circle, Lawrence, Douglas County, Kansas, and all tangible personal property associated therewith and used exclusively for purposes set forth under the Act (collectively, the “Project”), is hereby exempted from a portion of ad valorem taxation for a term of ten (10) calendar years, commencing with the calendar year following the calendar year in which the expansion of the Company’s facility is completed (the “Exempt Period”). 

Subject to the terms and conditions of the Performance Agreement discussed below, the Project shall be exempt from 50% of ad valorem taxes (not including special assessments or the school district’s capital outlay levy imposed pursuant to K.S.A. 72-53,113 et seq.) during the Exempt Period, unless the Company demonstrates to the satisfaction of the City that the Project is constructed to LEED Silver equivalent or higher, in which case the Project will be exempt from 70% of such ad valorem taxes.

SECTION 2.  Performance Agreement.  The Company shall enter into a Performance Agreement with the City relating to the Project which sets forth the terms and conditions of the Project’s partial exemption from ad valorem taxation during the Exempt Period.  City staff are hereby authorized to negotiate the Performance Agreement with the Company which will be presented to and reviewed by the Governing Body at a later meeting for approval.

SECTION 3.  No Transfer of Exemption. If there is a change in ownership of the exempt assets, the ad valorem tax exemption granted by this ordinance is not transferable without the express approval of the City.

SECTION 4. Copies of Documents. The City Clerk is hereby directed to provide the owner of the property and the County Appraiser of Douglas County, Kansas, a copy of this ordinance and copies of the other proofs of compliance with the requirements of K.S.A. 79-251.

SECTION 5. Effective Date. This ordinance shall take effect and be in full force and effect immediately following its passage and publication as provided by law.

PASSED by the Governing Body of the City of Lawrence, Kansas, this 4^th day of December, 2018.

APPROVED:

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Stuart Boley

                                                                                    Mayor

ATTEST:

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Sherri Riedemann

City Clerk

APPROVED AS TO FORM:                   

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Toni R. Wheeler                                                        

City Attorney