School board approves tax deal for Eldridge expansion

The Lawrence school board at its Monday meeting approved a 15-year, 95 percent tax abatement for an expansion of the Eldridge Hotel.

Eldridge officials requested the same deal from the City Commission and Douglas County Commission in February. The city gave preliminary approval while the county signed off on a 15-year, 85 percent abatement.

The item was included on the seven-member school board’s consent agenda, meaning it and over a dozen other items were approved unanimously in one fell swoop without discussion.

The abatements will be issued through the Neighborhood Revitalization Act, or NRA.

“In general, a rebate of incremental tax revenue has very little impact on school district revenue,” Superintendent Rick Doll wrote in the agenda packet for the meeting. “…The board of education has typically supported the requests for NRA designation at the same level as the city.”

The $12.5 million expansion will develop a vacant lot just south of the Eldridge, 701 Massachusetts St., which currently pays $4,900 in property taxes annually. With a 95 percent abatement, it was estimated the property would contribute $11,000 in the first year of operations after the project is complete.

The expansion will add 54 guestrooms, restaurant and bar space, and 7,000 square feet of banquet space, among other amenities.

City commissioners, who approved it 3-1 in their preliminary vote, said they were comfortable with a 15-year, 95 percent abatement because it will ultimately create additional cash flow for the city. The city estimated the expansion would generate another $2.9 million in sales tax revenue over a 15-year period.

The county, meanwhile, wouldn’t go higher than an 85 percent abatement because it does not receive as much sales tax money as the city and relies more heavily on property taxes.

“The scenarios for the city and county are very different,” commissioner Mike Gaughan said in February after the unanimous vote.

Eldridge general manager Nancy Longhurst said after the county’s vote that she thought an 85 percent abatement “will work for us.”

In other business Monday, the board heard a report on the Advancement Via Individual Determination, or AVID, program, which instructs students with average or below-average grades on good studying habits and prepares them for college.

Leah Wisdom, who coordinates the program for the district, said over 320 students are participating districtwide in the program this year, the first in which it has been available at the middle school level. She said organizers will focus on recruiting more males, after females accounted for 63 percent of enrollees.

AVID debuted at the high school level during the 2012-13 school year. Once accepted into the program, students remain in it year after year. Seven of nine seniors who joined in its debut year and remained in the program appeared at the board meeting Monday.

Wisdom said the nine students combined took over 40 advanced courses, received 25 acceptance letters from 14 universities and have been offered $68,300 in scholarships. Wisdom said all nine plan to attend college.