Memorandum

City of Lawrence

City Manager’s Office

TO:	David L. Corliss, City Manager
FROM:	Diane Stoddard, Assistant City Manager
DATE:	July 8, 2013
CC:	Cynthia Wagner, Assistant City Manager Britt Crum-Cano, Economic Development Coordinator
RE:	Authorization of consent for the Bioscience Technology Business Center (BTBC) to sell building located on St. Andrews Drive

Please place the following item on the City Commission agenda for July 16, 2013:

Authorize the Mayor to execute the documents regarding the application of the proceeds from the sale of the Bioscience and Technology Business Center’s (BTBC) St. Andrews Drive facility toward the BTBC Phase II expansion project, and authorize a release of the sale restriction declaration.  

Background:

In 2004, the City and Douglas County financially contributed toward the purchase of a building on St. Andrews Drive to house the Lawrence Regional Technology Center (LRTC) and serve as a business incubator facility.  The Lawrence Chamber of Commerce served as a conduit for the purchase of the real estate.  As part of the funding agreement, LRTC, which was subsequently merged into Bioscience Technology Business Center (BTBC), agreed to use the building as an incubator facility (or related start-up company activities).  This restriction also applied to the proceeds of the sale of the building if ever sold.  To journalize that restriction a Declaration was drafted, executed, and filed of record with the Douglas County Deeds office.  That Declaration remains on file.

Sale of St. Andrews Drive Facility:

The BTBC operates four facilities- the main facility on KU’s west campus, the BTBC expansion facility (located at Bob Billings and Wakarusa), the St. Andrews Drive facility, and an incubator at the KU Medical Center.  The BTBC Board has recently decided to dispose of the St. Andrews Drive facility and the BTBC has contracted with KU/KU Center for Research to purchase the building. The Board also voted to apply the proceeds from the sale of the building toward BTBC’s committed share of the capital for the Phase II project.  The building sale is expected to generate $275,000 of the $500,000 BTBC capital contribution. 

In order to enable the sale to proceed, the BTBC is seeking authorization from the City and County to release the restriction outlined in the November 2004 purchase document and Declaration outlining the building use and sale proceeds restriction and authorize the BTBC to utilize the proceeds toward the Phase II expansion project at the BTBC main facility.  In order to accomplish this, the City Commission will need to authorize the Mayor to execute an agreement regarding the application of the proceeds and a release of the sale restriction declaration.   Closing is scheduled for the end of July. 

Action Requested:

Authorize the Mayor to execute the documents regarding the application of the proceeds from the sale of the BTBC St. Andrews Drive facility and a release of the sale restriction declaration.