Memorandum                    

City of Lawrence

City Manager’s Office

 

TO:

Thomas M. Markus, City Manager

FROM:

Diane Stoddard, Assistant City Manager

DATE:

December 31, 2018

CC:

 

Casey Toomay, Assistant City Manager

Brandon McGuire, Assistant to the City Manager

RE:

Santa Fe Station Secondary Use Discussion

 

I believe that it is now time for the City Commission to have a discussion regarding potential secondary use opportunities at the Santa Fe Station now that the restoration project is nearly complete.  Additionally, there are funds budgeted for 2019 to complete the parking lot on the east side of the building.  

 

First, there is some useful background information: 

 

Former BNSF Area:  The area noted on the attached site plan was the original space dedicated to the BNSF crew stationed at the facility.  Because the BNSF was utilizing the space when the plans were finalized, grant funds could not be utilized on the interior of the BNSF space. Exterior improvements and overall building improvements, such as the roof and heating/cooling was completed in that area.  However, interior improvements, such as paint and flooring were not extended to these areas.  While the space is usable without these improvements, the interior improvements would make the space much nicer and match the other interior spaces of the building.  A rough estimate to complete this work is approximately $60,000.  See floor plan.    

 

BNSF Lease Option:  As a condition to close the real estate transfer of the station to the City, BNSF required the City execute a lease option to the BNSF for the former space within the station.   The terms of this option are quite unfavorable to the city and enable the BNSF to lease back the space with a 10-day notification to the City.  Obviously, this lease option in its current form creates a major impediment to nearly any use of the space.  City staff has approached the BNSF about amending, or ideally eliminating, this provision.  Action on this would be needed related to almost any option outlined in this memo.

 

Amtrak use of building:  The major recognized function of the building is to serve as an Amtrak station for the Southwest Chief line.  The City has an agreement with Amtrak for this use and Amtrak shares in a proportion of the maintenance costs on the building.  The lobby area would need to remain a functional lobby for passengers.

 

Historic Structure:  The facility is now on the National Register of Historic Places.  Any interior alterations are subject to historic review and the configuration of the interior space is a key historic aspect of the station.

 

Parking Lot plans for east side of building: The 2019 Capital Improvement Plan has budgeted funds for the construction of a new parking lot on the east side of the Santa Fe Station.  The construction of this parking lot is critical for the station.  While the original brick parking lot is being restored on the west side of the building, an extended parking area that was previously located on the west side was removed to make     See site plan. 

 

Use Options/Discussion:

 

Several of the ideas outlined bellowed are not necessarily mutually exclusive. 

 

Public Event Space/Parks and Recreation Programming Space:  To this point, staff has mainly thought of the structure as the Amtrak station and could envision use of the other portions of the building as event space to be managed by the Parks and Recreation Department.  The Parks and Recreation Department manages various City facilities, such as the Union Pacific Depot and the Carnegie Building, which are utilized for event rentals.  This remains a viable alternative for a secondary use of the building and could be a revenue generating opportunity for the City.  Due to the current BNSF lease option, some of the programming options would be limited, at least as it relates to the former BNSF space, which is subject to the option. 

 

Public/Private Partnership:  There is potential with a public/private partnership to lease a portion of the building for private use. Many depots across the country have private uses, particularly larger depots.   For example, the historic Rock Island Depot in Liberal, Kansas is home to the Chamber of Commerce offices and a restaurant.  The Dodge City Santa Fe depot is an active Amtrak station, and is available for facility rental and also houses a theater company. 

 

A positive aspect of the public/private partnership concept is regular daily activity at the station.  Creating a vibrant use could help deter vandalism and create a welcoming environment for Amtrak passengers.  Another potential advantage could be a partnership with a private entity to complete the necessary interior improvements of the former BNSF space.  Impacts on the property tax-exempt status of the facility would need to be explored in the event of private use of a portion of the facility. 

 

One potential avenue for the exploration of this concept might be the City issuing a Request for Interest to see if an entity might have an interest in utilizing the station for a private use complimentary to the City’s interests.  That would enable the City to see if a potential partner might exist.

 

Trail Head for Lawrence Loop:

One of the options for the completion of the Lawrence Loop would be to have the Loop extend through the Santa Fe Station property.  If this were done, the Santa Fe Station could be a nice trail head location for the Loop given parking and restroom facilities.  Also, there could be a potential nice tie-in with related private use, such as a small bike repair operation, etc. 

 

Riverkings Exhibit: 

Barbara Higgins-Dover has approached the City about a permanent location for the Riverkings Museum.  The collection consists of five display cases, 30 small artifacts, five larger artifacts, text panels and images.  The Kansas RiverKings Museum tells the story of a commercial fishing industry that began in Lawrence Kansas near 140 years ago. The story began approximately 1870 with the arrival of runaway slave, Jake Washington. The first fishing cabin, built by Jake, appeared just below/ east of the dam, not too far from the Railroad tracks. Ms. Higgins-Dover has expressed an interest in housing the exhibit at the Santa Fe Station. Currently, the museum collection is split and on display in two different locations, one in Perry Kansas and one at SpringHill Suites in Lawrence.

         

Conclusion/Recommendation:

 

Staff would appreciate general discussion by the City Commission.  Staff recommends that the space be made available for rental with the Parks and Recreation Department and simultaneously issuing a Request for Interest to see about potential interest in a public/private partnership option.  Also, the City should work with the BNSF to have the lease option removed, which will be necessary for any feasible use of the old BNSF space under any option.  As to the Riverkings Exhibit, staff would recommend placing that option on hold to gauge interest in the public/private partnership option.  It could be possible that the space required by such a partnership may preclude space for the exhibit.  However, the exhibit may be perfectly compatible with such option.