Lawrence city staff and commissioners are working on a policy that could have a significant impact on the community’s economic development efforts.

At the request of commissioners, staff members are looking at possible revisions to the policy under which the city grants tax abatements and other incentives to companies that want to locate in Lawrence. There are some positive aspects to the proposals being discussed and some issues that may trigger considerable debate among officials, as well as in the community. (It should be remembered that city officials stressed that the new “economic development director” was to be merely an adviser and not create policy for the city. Let’s hope this is indeed the case.)

One high-profile issue that came up last week was the city’s “living” wage provision that requires companies to pay a certain wage to qualify for tax abatements. The community wants to make every effort to attract so-called “good” jobs, but it’s notable that commissioners approved a contract last week to operate the city’s public transit system that calls for bus drivers to receive a wage below the figure tax-incented companies would have to meet.

Of course, it makes little difference what conditions the city puts on business incentives if there are no consequences for failing to meet those conditions. The city’s current policy is vague on this issue and, too often, companies have received their scheduled incentives despite the fact that they have fallen short of their promised employment and investment goals.

To address that issue, the city’s new economic development coordinator has come up with a proposed policy that uses a sliding scale to set specific consequences for companies that don’t live up to their agreement with the city. The policy would reduce a company’s abatement by 15 percent to 25 percent if job projections were off by 30 percent or less. A company that missed the mark by 30 percent or more would lose its entire abatement for the year. Penalties also could be imposed for companies that don’t meet projections for wages or capital investment in the community.

It’s good to consider these issues when the city isn’t facing a specific business request, but now, just a few months before an election that could replace a majority of the City Commission, isn’t the right time to finalize changes in this policy. Although the three commissioners whose terms will end in April have not formally announced their plans, indications are that at least two won’t seek re-election. With that in mind, the commission campaign would provide a good opportunity for the community to discuss and have input into the economic development policy.

Further discussion of the policy already has been delayed until two new members are seated on the Douglas County Commission in January. If the goal is to make sure that the local elected bodies are on the same page with economic development efforts, it only makes sense to wait until a new City Commission is seated to finalize this important policy.