Amarr likely to get tax abatement

City to revisit policy issues

Amarr Garage Door’s tax abatement request is on track. The city’s tax abatement policy appears less secure.

The city’s Public Incentives Review Committee on Thursday voted 5-1 to recommend approval of Amarr’s request for a 55 percent tax abatement on a proposed $17.39 million, 80-job expansion of its factory at East Hills Business Park.

“I don’t know why we would not recommend approval,” said Cindy Yulich, a Lawrence school board member who serves on the incentives committee.

The request now goes to the Lawrence City Commission for approval. At least three commissioners, a majority, indicated Thursday they were strongly in favor of the abatement.

“I think Amarr fits our profile,” Commissioner David Schauner said.

But there was dissent Thursday from committee member Kirk McClure. His issue — that a company should prove it needs an abatement, instead of getting one if it meets city criteria — is one that Lawrence city commissioners are promising to deal with soon.

Because there is no such requirement, Mayor David Dunfield on Thursday discouraged McClure from raising the issue. Afterward, McClure said he thought Amarr would expand in Lawrence without an abatement.

“A lot of issues I wasn’t allowed to bring up,” McClure said. “This is bad economic development planning.”

The city’s tax abatement policy once required companies to demonstrate they wouldn’t build or expand in Lawrence without the abatement. A tax abatement task force removed that requirement in 2001, saying the provision was meaningless because companies would never say they didn’t need the abatement.

When Amarr made its tax abatement request earlier this month, Commissioner Mike Rundle attempted to reintroduce a version of the provision, asking Amarr to provide financial information proving it needed the abatement.

Because that information isn’t required under city policy, however, the Lawrence City Commission this week agreed not to have Amarr jump that hurdle.

Amarr officials had said they would not expand the plant in Lawrence without a tax abatement.

But commissioners will consider the policy issue soon. Dunfield said a study session was planned.

Commissioner Sue Hack said the issue should be quickly resolved so that economic development officials had a clear set of rules to work with, instead of a “moving target.”

“We need to decide soon,” she said. “Otherwise we’re not going to have an effective economic development tool.”

Amarr’s tax abatement request could reach the Lawrence City Commission by Nov. 11.