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CITY COMMISSION AGENDA ITEM |
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Department: |
City Manager’s Office |
Commission Meeting Date: January 14, 2019 |
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Staff Contact: |
Diane Stoddard, Assistant City Manager |
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Recommendations/Options/Action Requested: |
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Consider authorizing three-year extension for the Catalyst incentive program for industrial development to April 1, 2022, adding minimum capital investment for Catalyst projects. |
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Executive Summary: |
In 2017, the City Commission unanimously authorized the Catalyst Incentive Program for industrial development. The program has been very successful and three different companies have taken advantage of the program. The VanTrust project was the first Catalyst project and was approved for three phases- the building associated with the first phase was recently completed. Other projects include two expansions of existing businesses- a 50,000 square foot expansion of Plastikon that was completed in 2018 and a planned 112,000 square foot expansion of Grandstand. These projects are summarized in the attached chart. A total of 717,000 square feet of industrial projects have been authorized with the Catalyst Program, yielding over $38 million in capital investment and are projected to crate an estimated 63 jobs.
The Catalyst program was authorized for a two-year period, which will be expiring April 2019. It appears that it would be a good time to consider an extension to the program. Staff suggests a three-year extension, given the success of the program. This would enable the program to be in place in the event other existing or new businesses wish to consider expansions or relocations to Lawrence.
Staff recommends the same program be continued for the extended period, with one addition. Staff believes that providing a threshold of capital investment be added to the program, to ensure a minimum capital investment to qualify. In order to calculate these minimum thresholds, $67 per square foot was utilized, which was the cost for the warm shell building constructed by VanTrust.
· 75,000 s.f. New Build: Minimum building investment = $5,000,000 · 25,000 s.f. New Build: Minimum building investment = $1,600,000 · 15,000 s.f. Expansion: Minimum building investment = $1,000,000
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Strategic Goal Area: |
Economic Growth and Security |
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Fiscal Impact (Amount/Source): |
There is no fiscal impact with the extension itself. However, each Catalyst project may vary in terms of its impact, depending on whether or not City-owned property is involved. |
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Attachments: |
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(for CMO use only) |
☐TM ☒DS ☐CT ☐BM |