Lawrence City Commission to consider hiring consultant for economic incentives, affordable housing

photo by: Nick Krug

Lawrence City Hall, 6 E. Sixth St., is pictured on May 3, 2016.

The city is looking for outside help in solving two of the key problems it faces: economic development and affordable housing. If approved by the City Commission at its meeting Tuesday, those services would cost the city thousands per month.

As part of their meeting, commissioners will decide whether to approve an agreement to hire a consultant for both issues. The services will include “gap analysis,” consultation and visits two days per month.

City Commissioners Stuart Boley, Matthew Herbert and Leslie Soden, all elected last year, campaigned on the notion that previous commissioners were overusing financial incentives for economic development. Boley said he thinks three things about incentives need to be figured out: the approval process, the cost to the community and the public benefit.

“So there are three different things that we have to try come to grips with, in my opinion,” Boley said.

During recent discussions on economic development, gap analysis was identified as a key tool to evaluate whether a project needed incentives to proceed, according to the city recommendation. Boley said he thought the consulting services look like something that will address the process.

“Instead of us figuring out what the gap is, this company, this nonprofit, can help us do that,” Boley said. “They don’t live in Lawrence, they’re not here, this is what they do for a living for people all around the country, so it’s not like they’re biased (toward) development.”

City staff put out a bid for the services in August, and is recommending an agreement with National Development Council. The agreement would cost the city $6,150 per month, and city staff is proposing the commission authorize the city to arrange a six-month agreement, with a possible six-month extension.

Though Boley recognized the need for such analysis, he said he wasn’t prejudging what the services could accomplish.

“I’m real interested in what these folks have to say,” he said. “And what the presentation will be (Tuesday) to try to come to some common understanding of what the process will be for approving the incentives.”

Assistant City Manager Diane Stoddard said that if approved by the commission, the consultant would help inform the city’s approach to economic development. Stoddard said that NDC would meet with applicants for incentives and appear at public hearings and that the goal would be to clearly determine the need for incentives by identifying the difference between projected and expected market returns.

“The idea is that an investor has many investment options and will not likely pursue projects that don’t meet at least some minimum returns,” Stoddard said via email.

Two city boards are in the process of providing commissioners recommendations for proposed changes to the city’s incentives policies. Ideas from the boards will be sent to the commission, which will have a work session on the issue on Oct. 11.

Consultants will also advise the city on its efforts to create more affordable housing options in Lawrence. Affordable housing has been designated through national health rankings as a “severe” problem in Douglas County, and the City Commission has named it one of its main goals to address. During the monthly visits, consultants will meet with city staff, commissioners and members of the Affordable Housing Advisory Board, Stoddard said. The advisory board is also in the process of drafting policy recommendations.

Stoddard said the consultants could help the city gather more information for its affordable housing initiative.

“We will be looking to gain expertise on other projects that they have been involved with in other areas of the country,” Stoddard said.

City commissioners will vote on whether to approve the service agreement at their meeting at 5:45 p.m. Tuesday at City Hall, 6 E. Sixth St.