County supports 85 percent tax rebate for East Lawrence development

A rendering of the proposed redevelopment of a vacant warehouse at 826 Pennsylvania Street.

The Douglas County Commission voted Wednesday to support an 85 percent property tax rebate for a proposed East Lawrence development.

The county is the second of three local jurisdictions to act on Williams Management LLC’s 10-year 85 percent property tax rebate through the Neighborhood Revitalization Act. The incentive would help finance a $3.6 million conversion of the old SeedCo property at 826 Pennsylvania St. into a brewery, restaurant and apartment building.

The County Commission’s action came the day after the Lawrence City Commission voted to support the tax rebate on the same NRA request at a reduced 50 percent rate. The Lawrence school board is to consider the request at its Nov. 14 meeting.

The NRA allows property tax rebates on improvements made to blighted properties. Information shared with the county commission indicated that Williams Management would pay $8,578 in total property taxes on the improvements to the three local jurisdictions in year one of the 10-year rebate. That would grow to $11,141 by the rebate’s 10th and final year.

The big payoff would be in the years following the rebate’s sunset. The property would produce an estimated $460,000 in tax revenue in years 11 through 15 with the proposed improvements, compared to $55,692 if left as is, a report to the commission showed.

County commissioners decided the 85 percent rebate was justified giving the risk the developer was taking. Tom Jackson, an analyst with the National Development Council, told commissioners the rebate would allow the developer to realize an “acceptable” 9.85 percent return on investment.

Commissioners also noted the 85 percent rebate was comparable to the 95 percent, 10-year rebate awarded to the Cider Gallery and the 95 percent, 15-year abatement on the Poehler Lofts, two other projects in East Lawrence. They also made note of the public benefit of the two affordable housing units to be included in the development.

In other business: the County Commission:

• Approved a concealed carry policy for county employees other than law enforcement officers. Employees will not be able to carry concealed guns inside county buildings next year, but by state law will be allowed to have them on county grounds and in county vehicles while on the job.

The policy states that employees other than law enforcement officers have no work-related reason to carry weapons, and that employees are solely responsible for any consequences for the use of weapons during on-duty hours. Guns are not to be visible in any way and are only to be used for self-defense or the defense of others.

• Asked for further clarifications to Douglas County Fairgrounds rental and use policies regarding the definition of youth groups, which would be allowed to use the fairgrounds facilities rent-free, as well as a more thorough definition of major events requiring $2,500 deposits and an exploration of the possibility of smaller deposit requirements for low-impact group events.

• Approved sending a letter to the Kansas Department of Health and Environment on the county’s intention to amend regulations covering the spreading of septic tank waste on rural pastures. The only amendment would ban spreading the waste within 500 feet of a residence. Should the KDHE agree to the amendment, the county would be required to have public hearings on the new language before it was adopted.