photo by: Nick Krug

Lawrence resident and former city commissioner Bob Schumm is seeking a 10-year tax abatement for his Vermont Place development, which would consist of condominiums and office space. The lot is pictured on Monday, June 6, 2016.

The Lawrence City Commission advanced Tuesday two requests for tax incentives for new developments, one of which commissioners previously refused to consider.

Two sets of developers submitted requests for tax rebates for their projects: former commissioner Bob Schumm for Vermont Place, a condominium, office and retail building planned for Vermont Street, and Adam and Matt Williams for the renovation of an old warehouse in East Lawrence to house a brewery, restaurant and apartments.

With the go-ahead from commissioners, both developments will be analyzed and go before two city boards — the Public Incentives Review Committee and Affordable Housing Advisory Board — before being sent back to the City Commission for a final decision.

“I think they each bring a lot to the table,” City Manager Tom Markus said of the developments. “I like these projects.”

Through the city’s usual process, Economic Development Director Britt Crum-Cano would analyze the incentives requests to determine whether the developers needed the subsidies to make the projects work. Markus proposed Tuesday having an outside, independent agency perform the analyses for the two projects.

The city will enter into agreements with the outside agency and developers, Markus said, and require Schumm and Adam and Matt Williams to reimburse Lawrence for the analyses’ costs. Markus said he would look toward the National Development Council as a possible organization to handle the analyses. The NDC is a nonprofit that works with local and state governments on economic development issues.

He said it could help “build some confidence” in the projects and “tone down some of the rhetoric.”

“Everything I hear in this community kind of leans toward us educating ourselves and the public about how you get to the correct numbers,” Markus told commissioners. “I think you’ll be pleased with the type of information they can provide to you. I think it will add credibility to this whole process.”

At their meeting on June 7, commissioners voted down Schumm’s first request for tax breaks for Vermont Place, deciding it was too high of a request with too little public benefit.

Most commissioners have said they would consider maximum tax rebates of 50 percent for projects that aren’t large job creators. Schumm had requested 85 percent for five years, followed by 50 percent for five years.

Markus said the 50 percent cap was an attempt by the City Commission to “set a bar, so there was a comfort level in the community.” He said the independent analysis was “another way to approach it.”

“I’m pretty confident both of these projects will be over 50 percent,” Markus said. “A way to approach that is to do an analysis of the actual costs, using fair assumptions, to determine how you actually get to what the appropriate level should be, and showing the public benefit.”

The commission voted 4-1 to consider Schumm’s same request Tuesday after hearing Markus’ plan, and after Schumm added in a commitment to set aside one reduced-price condominium to an individual or family earning between 60 and 80 percent of the median area income.

Commissioner Matthew Herbert voted against the request. He said the one-bedroom condominium was not worth the amount of investment on behalf of the city.

“When we talk about an 85 percent incentive, we’re talking about something that’s going to need to move the needle,” Herbert said. “To me, one bedroom of affordable housing is not going to move the needle. I’m not going to support it, and I don’t want to see him spend money on something I don’t see me voting for.”

Before asking commissioners to reconsider his request, Schumm had met with Rebecca Buford, director of the Lawrence Housing Trust, and determined he could keep a unit affordable, in perpetuity through the trust. According to a letter Schumm sent to commissioners, the unit, estimated around 550 to 600 square feet, would sell for approximately $95,000.

Buford said it was “very affordable compared to what’s out there on the market,” and, if the project moves forward, it could go to someone in need of workforce housing.

To afford to sell a condo at reduced price, Schumm said in the letter he would increase the cost of the building’s other condos by $10 per square foot. In response to Herbert’s questioning about the costs, Schumm said his condo, which is planned for the top floor of the development, would not have the same increase in price.

Less discussion was given to the other request for tax breaks, for a brewery, restaurant and 15 apartments at 826 Pennsylvania Street in the Warehouse Arts District. Commissioners voted unanimously to advance the request.

The project proposal stated two of the development’s 15 apartments would be set aside for those earning less than 80 percent of Lawrence’s median income.

Rather than state the amount of rebate they’re seeking, Adam and Matt Williams, under Williams Management LLC, are asking that the analysis determine the level of assistance the project would require. An attorney for the development group said Tuesday that it was anticipated to be more than 50 percent.

“For the city, I think these are great things; to have this kind of investment in an area and to see those historic buildings have a new life, I think it’s pretty exciting,” Markus said. “To see that resurrected into something that’s viable again is desirable.”