Lawrence city commissioners are right to be concerned about the precedent they are setting by approving an 85 percent, 10-year tax rebate for an apartment/retail development on Indiana Street across the street from Kansas University’s Memorial Stadium.

The $75 million project would include 237 upscale apartment units and about 13,000 square feet of retail space. The tax rebate would come through the Neighborhood Revitalization Act, which is intended to encourage redevelopment in deteriorating areas. The developer has touted the uniqueness of the structure, which will include what he says is the state’s first automated parking garage that uses lifts and tracks to park cars. The rebate approved by commissioners Tuesday was substantial but less than the 95 percent, 12-year rebate the developer had sought for the project, and it’s unclear whether the project will move forward with the lower amount.

The approval came on a 3-2 vote from commissioners who weighed the value of the development against the possibility they would be opening the door to many more tax abatement requests from apartment developers. One commissioner voted against the larger rebate then supported the smaller one.

Where is the commission drawing this line? What makes this project worthy of a tax rebate? Its location? Its price tag? Its uniqueness?

The city already has set a precedent for rebating taxes on apartment/retail structures in downtown and the East Lawrence warehouse district. Those incentives were justified mainly as a way to encourage more downtown residential development. Should that policy be extended to the current proposal or even all of Oread neighborhood to encourage new residential redevelopment around KU? If so, how far should the footprint for rebates be extended?

Some commissioners noted the size of the investment the developer would be making in Lawrence with the new apartments near the stadium. Is the size of the project a determining factor? Or the fact that it has an innovative parking system? Is the inclusion of retail development a key? If so, how much retail should be required for projects to receive a tax rebate?

Looking at projects on a case-by-case basis, as city officials usually do, it’s easy to set unintended and perhaps unwise precedents. Out of fairness, commissioners need to be clear about what sets this project apart from a request by any other developer in any other part of Lawrence who wants a tax rebate incentive to build a new apartment building.