Memorandum

City of Lawrence

City Manager’s Office

TO:	David L. Corliss, City Manager
CC:	Diane Stoddard and Cynthia Wagner, Assistant City Managers
FROM:	Britt Crum-Cano, Economic Development Coordinator
DATE:	July 23, 2013
RE:	Condemnation of 1106 Rhode Island Street property and private purchase and redevelopment plans.

Background:

On February 5, 2013, the Governing Body received an update from Planning and Development Services regarding the status of 1106 Rhode Island Street.  This property has been in a dilapidated state and is in violation of the City Code.  Staff attempted to work with the owner’s family to bring the property into compliance with the code; however, those efforts were unsuccessful.  Staff reported that little progress had been made by the property owners regarding implementation of Resolution No. 6972 which ordered the repair or demolition of 1106 Rhode Island Street by July 17, 2012.  The Governing Body on February 5, 2013, directed staff to initiate condemnation proceedings in order to obtain title to the property.

On May 7, 2013, the City Commission adopted on first reading, Ordinance No. 8856, ordering through the exercise of eminent domain the condemnation of fee simple title to private property interests commonly located at 1106 Rhode Island Street, and authorizing the filing of a petition in Douglas County District Court.  The Commission voted to have the second reading of Ordinance No. 8856 delayed for 60 days to allow time for interested parties to prepare preliminary purchase and redevelopment plans.

In addition, the Commission directed staff to meet with parties interested in redeveloping the property in order to identify possible economic development tools that could be utilized.  Staff met with Stan Hernly of Hernly Associates, Inc., on May 10^th, 2013 to discuss potential redevelopment plans and possible financial support sources, including the City’s Neighborhood Revitalization Area (NRA) program, waiving of City fees, City provided services (e.g. landscaping), and public improvements. 

Purchase and Redevelopment Update:

On July 17^th, Staff received a letter from Hernly Associates, Inc., which details the company’s recent actions regarding financing, purchase and redevelopment plans for the property at 1106 Rhode Island Street.

Requested Action:

Reference request for economic development support as indicated in the update letter from Hernly Associates, Inc., and refer to Staff for review and recommendation.