Study plan raises concern

Proposal would add hurdles to retail projects

At first glance, it is just another city-mandated study.

But its supporters say it is the tool the city needs to protect downtown Lawrence. Its opponents say it is a device that will intimidate all types of retailers from doing business in the city.

City commissioners tonight will decide whether it becomes law.

Called a retail market impact analysis, the new study would require all new shopping areas of 50,000 square feet or more to meet a series of tests designed to determine whether Lawrence’s economy and real estate market can support the new development.

But members of the development community are concerned that it really is designed to add complexity to the development process and give planners a built-in reason to deny a project.

“We’re on the verge of adopting something that nobody in our community can clearly implement,” said Mark Andersen, a Lawrence attorney who works on development projects. “The stated purpose of our new development code was to simplify and install certainty into the development process. This will do the complete opposite.

“This will have a dampening effect on new retail development. I don’t think national retailers are going to be willing to go through this approval process.”

But supporters of the proposed requirement argue that it will provide city commissioners the data they need to really determine if a new retail project will hurt downtown Lawrence. Protecting downtown is a stated goal of the community’s comprehensive plan.

“What’s being said here is a bunch of people don’t want to defend downtown,” said David Burress, a Lawrence-Douglas County Planning Commissioner who helped create the idea for the new study. “You can’t defend downtown without getting the data to do it.”

Measuring vacancy

The proposed regulation would require developers to hire a consultant – picked by the city – to produce a market study for every retail project that is 50,000 square feet or more. The study will include:

¢ An overall vacancy rate for all retail properties in the city. If the new project pushes the total vacancy rate above 8 percent, the project must be denied under the current language of the proposed ordinance. Planning commissioners, though, have suggested changing that portion of the code to read that the development “may” be denied rather than stating it “shall” be denied.

¢ A review of sales tax data to determine particular retail sectors – such as clothing, electronics and other types of retailing – that are underserved and those that are overserved.

“One of the concerns that I have is that there are sentences in the ordinance that make it sound like we’re going to be deciding the type of businesses that are locating in town,” Mayor Mike Amyx said. “I don’t ever want to be in that situation.”

Retail report

City Commissioner Boog Highberger said he also doesn’t want a city policy that would get into “micromanaging” the types of retail businesses that are allowed to locate in a particular project. But he said he’s not sure that’s what this proposal would do.

“I think the concept is good, but I want to look at the details more closely,” Highberger said. “But I do think we want to avoid overbuilding retail. If that isn’t controlled, it could lead to blight.”

The proposal comes at a time when a study paid for by the city found that the community was lacking in retail options. A January study by Development Strategies Inc. estimated Lawrence was capturing only 59 percent of the retail spending that a city its size would be expected to capture. That ranked last among 13 other Midwestern university communities surveyed.

It also found a retail vacancy rate of just 3.9 percent. But the report did note a much higher vacancy rate of 10.4 percent for the downtown area, which the authors said was an area to keep under close watch.

Commissioners meet at 6:35 tonight at City Hall, Sixth and Massachusetts streets.