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Town Talk

Wicked Broadband project seeks $500,000 city grant; downtown hotel project seeks adjustment to incentives package; historical society seeks $20k for new exhibit

Reading the agenda for Tuesday night’s Lawrence City Commission meeting is kind of like reading my household’s credit card bill: There are plenty of questions, and all the answers seem to have dollar signs.

There are three outside organizations requesting financial assistance from the city, with two of them each asking for a half-million dollars.

We’ll try to fill in more details later, but here’s a look at the basics of the requests:

• Lawrence-based Wicked Broadband announced last month that it will start a pilot project to bring super fast 1-Gigabit Internet service to a neighborhood later this year.

A kick-off event for the project spelled out a lot of details about how the company, which previously did business as Lawrence Freenet, could bring the same type of high-speed Internet service to Lawrence that Google Fiber is bringing to Kansas City. At that event, the idea of financial incentives from the city wasn’t envisioned. Well, it is now.

The company has filed an application for a $500,000 economic development grant from the city, plus is asking to receive up to a $20,000 a year rebate in franchise fees it pays to the city. It also wants to have the right to enter into $10 per year leases to use a portion of new fiber optic cables that the city plans to install throughout the community in future years.

Joshua Montgomery, co-owner of Wicked Broadband, said there are several factors that have caused him to rethink the need for city incentives for the project. But perhaps the largest is that he’s been contacted by several significant New York-based capital investment companies that are interested in investing in a locally owned, high-speed Internet service. Those investors have made it clear that the city of Lawrence needs to do something to show that it is committed to the idea of bringing a high-speed network to the city.

“If the city says that it is behind it 100 percent, that opens the door for the next $30 million in private funding that will be needed to spread this service to the rest of the community,” Montgomery said.

Montgomery said the $500,000, one-time grant would allow the service territory for the pilot project to grow to 1,000 households, up from 500. The neighborhood or neighborhoods haven’t been selected yet. Wicked is taking pre-registrations for the service on its website. The neighborhood with the highest percentage of residents pre-registered will serve as the pilot project. An announcement is expected June 15.

Montgomery said he and his business partner and wife, Lawrence school board member Kris Adair, are putting up $500,000 in private money for the pilot project.

City commissioners on Tuesday aren’t being asked to approve the request. Instead, Tuesday’s vote is just to direct city staff to begin analyzing it.

Wicked Broadband’s service will be a direct competitor to existing Internet providers, such as Knology and AT&T, which generally do not receive such city subsidies. So, it will be interesting to hear what those companies have to say as the process unfolds.

As for Montgomery, he said he’ll argue that the city won’t be making an investment in a private company as much as it will be making an investment in a new infrastructure system that will be critical to future commerce. “It is an economic enabler,” Montgomery said.

•••

The second request comes from a group led by Lawrence businessman Doug Compton, which is seeking to build a new hotel at the southeast corner of Ninth and New Hampshire.

It is a bit more complicated to understand, and I’ll try to get a better handle on the numbers before Tuesday’s meeting. But the request seeks to raise the amount of Tax Increment Finance dollars the hotel is eligible to receive to $4 million, up from $3.5 million.

Unlike the Wicked Broadband request, this doesn’t involve the city writing a $500,000 check to the development. Instead, a TIF allows the project to get a rebate on a certain percentage of the property taxes it pays. It is kind of like a tax abatement, except the money has to be used to pay for infrastructure type of expenses. In this case, that includes a private parking garage for the hotel.

What makes it a bit complicated is that the developers also have proposed a multistory apartment/office project for the northeast corner of the intersection. It also uses Tax Increment Financing. It looks like a likely option is to increase the amount of TIF money available for the southeast corner hotel project by reducing the amount of projected TIF revenues available to the northeast corner apartment project.

If that is ultimately what happens, then the overall amount of incentive basically would be a wash. We’ll have to see how those details work out.

The more interesting part is what developers have said about the hotel project. It has had its necessary building approvals for months, but hasn’t yet started construction. A letter to the city now makes it clear that there are financial questions the investors are trying to answer.

Bill Fleming, an attorney for the development group, told the city in a letter that “the hotel investors are keenly interested in the ‘cost per key,’ which is the average cost for each hotel room.”

If the additional $500,000 in TIF money is not available to the hotel project, then that will raise the average cost per room the investors must pay.

“The investors may conclude the project is not feasible at that cost per key, and the project in that case will not proceed,” Fleming wrote.

That would be a major turn of events for the project, which faced stiff opposition from the adjacent East Lawrence neighborhood, and had to fight hard to win city approval.

•••

Maybe the folks at the Douglas County Historical Society are more than just masters of history. Perhaps they also are masters of timing. After those two big-ticket items, they are asking for a mere $20,000 in city funding. The money will be used to help fund a permanent exhibit on the second floor of the Watkins Museum commemorating the 150th anniversary of Quantrill’s raid on Lawrence.

The new exhibit is set to open on Aug. 17, and will “explore Douglas County’s history, issues that shaped the development of the community, and events that made it a focus of national attention.”

Ultimately, the exhibit will be expanded to the third floor of the museum. The bulk of the nearly $257,000 in exhibit costs has come from private individuals, businesses and grants.

City staff members are recommending approval of the $20,000 in funding. The money would come from the city’s guest tax fund, which receives its revenue from the guest tax charged at hotel and motel rooms.

Commissioners meet at 6:35 p.m. Tuesday.

Reply 138 comments from Drbloom Poolside Jafs Bballwizard Chootspa Currahee Ksrover Russkie10 None2 J_brown and 38 others

Douglas County oil production up 12 percent in 2012; outpaces statewide growth

Maybe I’ve been prospecting for oil wrong all these years. You remember how Jed Clampett on the Beverly Hillbillies struck it rich when he was out shooting at some food, and up from the ground came some “bubbling crude” (or “Texas tea,” that is)? I just figured that was the way to do it.

Well, others in Douglas County have been having more success with other methods, it seems. A new report from the Kansas Geological Survey at KU says oil production is up in Douglas County, just as it is statewide.

There were 51,715 barrels of oil pumped in Douglas County in 2012, up 12 percent from 2011. Douglas County’s rate of increase outpaced the state as a whole, which saw oil production increase by 5 percent in 2012.

Douglas County’s totals were the highest since 2010, when about 53,000 barrels were pumped. The numbers represent quite a turnaround from the early 2000s. From 2000 to 2007, the county didn’t pump more than 40,000 barrels in any given year.

The number of wells operating in Douglas County is also at a high. The county had 422 wells operating in 2012, which was the highest total since at least 1995.

Several of the new wells are actually old wells that had been abandoned but now have been restarted. But there also has been some new drilling in the county.

The area between Baldwin and Eudora in eastern Douglas County continues to be the prime area for oil production in the area. With oil prices remaining high, and recovery techniques improving, there have been some dramatic increases in the amount of oil that producers are able to extract from those fairly modest wells.

For example, there is a field called Eudora South in eastern Douglas County. Up until 2007, it had not had more than one well operating at a time, and the field did not produce more than 710 barrels in any given year.

Since 2007, the field has had anywhere from 19 to 22 wells operating, and it has produced a total of 21,100 barrels of oil. If extracting oil has become that much more efficient, it makes you wonder why the price of it has remained so high?

Folks may be surprised that there actually are oil wells just outside the city limits of Lawrence. There has been new activity just outside of North Lawrence behind the ICL Performance Products plant — or the former FMC plant, to you old-timers.

A new set of oil storage tanks has been built near the intersection of North 1650 Road and East 1600 Road in the past several months. There also appears to be a fairly new oil well just to the south of that location.

The idea that there is oil in the Kansas River valley is not a new one, and indeed there have long been some old wells near the North 1650 and East 1600 roads area. But Lynn Watney, geologist with the Kansas Geological Survey, said he expects drillers will start having more interest in what has been known as the “shoestring sands” that run through the valley.

Enhanced drilling techniques have made it more feasible to get through the 1,000 to 1,200 feet of sediment that covers the sand beds. But the biggest factor, Watney said, has been the sustained high price of oil over the past several years. That has been the main driver in Douglas County becoming more active in the oil business.

“There is plenty of incentive when you are talking about $80 to $100 oil,” Watney said.

Statewide, oil production rose to 43.7 million barrels last year, up 5 percent from 2011. Douglas County continues to be a minor player in the oil business, compared to counties in western and southern Kansas. Ellis County, in northwest Kansas, is the state’s top producer, with nearly 3.6 million barrels in 2012, an increase of about 5 percent over 2011. Following Ellis County were the counties of Barber, Barton, Russell, Ness, Rooks, Haskell, Finney, Graham and Stafford.

Douglas County is in the middle of the pack when it comes to oil production from area counties. Here’s a look at 2012 totals for area counties:

• Jefferson County: 20,285 barrels from 62 wells;

• Johnson County: 293,351 barrels from 779 wells;

• Leavenworth County: 64,912 barrels from 210 wells;

• Franklin County: 201,661 barrels from 1,861 wells;

• Osage County: 2,195 barrels from four wells;

• Miami County: 171,826 barrels from 2,327 wells;

• Neighboring Shawnee County has no oil wells.

The KU report also measured natural gas production. Kansas, unlike some other states, hasn’t seen an increase in natural gas production; in fact, it declined about 4 percent in 2012. Watney said that mainly was because natural gas prices have been low, which has halted new drilling in the expansive Hugoton gas fields in southwest Kansas.

Douglas County had no active gas wells in 2012, according to the KU numbers.

That’s good to know. I’ll put my natural gas hunting expeditions on hold for a while. And I need to explain to my wife why the tulips are full of buckshot.

Reply 9 comments from Budwhysir Chad Lawhorn Bearded_gnome Easy_does_it Blindrabbit Whatever95

Lawrence restaurant updates: La Parilla’s new location, plans for a Sandbar Sub shop and 60 years for Johnny’s Tavern

Downtown Lawrence’s restaurant scene is heating up. Here’s a look at a few updates:

• La Parilla has moved into its new location at 724 Massachusetts Street, which formerly was the home of Tapas.

Co-owner Subarna Bhattachan told me recently that the new space gives the Mexican/Latin American restaurant about double the space that it had in its old location at 814 Massachusetts.

But Bhattachan said lots of new space doesn’t mean lots of changes for the restaurant. He and co-owner/co-chef Alejandro Lule decided not to make any changes to the menu.

What you may notice, though, is the restaurant now has a full bar. It also has a second-story dining area, which Bhattachan said may be used for private dining and catering events.

Bhattachan said the restaurant eventually will start hosting some wine tastings featuring vintages from Spain, Chile, and Argentina. Bhattachan said he also wants to look into the idea of doing some rum and tequila tastings. That sounds very interesting, but I doubt I can afford to participate in a tequila tasting. No. Bhattachan didn’t share any prices with me, but it has been my experience that tequila tastings ought to involve bail money.

• Bhattachan confirmed to me that La Parilla — which will turn 15 this summer — wasn’t really looking to move. But the restaurant did not have its lease renewed at 814 Massachusetts.

That’s a good sign that the owner of 814 Massachusetts, veteran landlord George Paley, has another tenant lined up to take the space. Indeed he does.

Paley told me another restaurant is set to take over the space. I don’t have details yet on the name or type of restaurant slated for the location. Paley said the new tenant is someone who grew up in Kansas, but is coming back from the East Coast.

I’ll let you know when I get more details.

• Also in the category of needing more details, is a plan to redevelop the former Mirth Cafe space at 745 New Hampshire. If you remember, Mirth has moved to the old Pepperjack’s Grill location at 10th and New Hampshire streets.

A building permit has been issued to remodel 745 New Hampshire into a space to house a Sandbar Subs shop and a branch for Peoples Bank, according to the paperwork filed at City Hall.

I’ve got calls into representatives with both of those businesses, and will report back when I hear more. What I can tell you, though, is Sandbar Subs already has a presence in Lawrence. The restaurant has locations in the Zarco gas stations on W. Sixth Street and E. 23rd Street. It also has a location in the Zarco station along Interstate 35 in Ottawa.

It has sandwiches or wraps with names like Captain Hook, Pirate Steak, Sammy the Shark and Jimmy the Sailor. The restaurants play beach-lovers' music and have a very tropical theme to them. It's sort of like having Jimmy Buffett serve you a sandwich. (I don’t think the menu is salt free, so evidently he found his lost shaker of salt.)

As I said, no details yet on what the downtown location may involve, but I would be warming up your pirate voice and digging out your eye patch just in case.

I know I said this was going to be a restaurant update, and unless you do something different with your money than I do, Peoples Bank doesn’t fit that bill. But if Peoples indeed is opening another branch downtown, that would be significant. New bank locations were a hallmark of the 1990s and early 2000s when the economy was really humming. Over the past few years, however, it was more common to see a bank consolidate locations — Central National for example pulled out of downtown.

But recently there has been expansion activity. We reported on Baldwin-based MidAmerica Bank signing a deal to open a location on West Sixth Street, and Lawrence Bank will get a nice new facility in downtown as part of the multistory apartment building project slated for the northeast corner of Ninth and New Hampshire.

So, maybe the banking industry is one to keep an eye on again in Lawrence. (I may even have to take this eye patch off.)

• Several of you have been asking for an update on The Roost, which is the breakfast- and lunch-oriented restaurant slated to take over the former space of Milton’s at 920 Massachusetts Street.

Well, Manda Jolly, a partner in the project, told me the restaurant is scheduled to have a late-June to early-July opening. Renovation work is underway.

Some of you may have seen that the restaurant has started a Kickstarter campaign to try to raise $20,000 in funding. That sometimes creates questions about the viability of a project, but Jolly told me some of the building plans for the restaurant would have to be readjusted if the campaign is not successful. Either way, the group is committed to opening the restaurant.

Jolly also gave me some other details about how the menu and ownership group of the restaurant is shaping up, as well as plans to get into the venue rental business are shaping up. I’ll pass those along in a later post.

• And finally, you can’t forget Johnny’s, although there have been times the establishment has made my memory a little fuzzy.

The venerable restaurant and tavern in North Lawrence is celebrating its 60th anniversary this week. There are a handful of old bars in Lawrence, but Johnny’s uses the phrase “the longest running tap in Lawrence,” to describe itself.

The bar will have a special concert on Friday night with Billy Spears and the Beer Bellies, and then will throw an anniversary party on Saturday.

The business got started in 1953 when John Wilson turned his father’s farm implement store into a tavern. For the past 35 years, Lawrence businessman Rick Renfro has been the lead owner of the operation, and has expanded the Johnny’s brand into West Lawrence and the Kansas City metro area.

“It’s extraordinary,” Renfro said of the business’ run. “The average life span of a bar or restaurant is 15 years. I think we have beaten the odds.”

Reply 15 comments from Wilburm Msezdsit Tanaumaga Frankfussman Patkindle Keith Gatekeeper Your_mother Larrynative Nugget and 2 others

Contentious issue of lighted tennis courts near LHS to be discussed again by city commissioners

One after another, speakers with fingertips that lighted up stepped to the lectern at Lawrence City Hall last night. It was like a herd of E.T.’s had come to watch the City Commission meeting.

I’ve seen odder things at City Hall, but, no, there wasn’t an extraterrestrial presence at Tuesday night’s commission meeting. These lighted fingers could only mean one thing: The contentious issue of lighted tennis courts in the Centennial neighborhood is back.

More than a dozen members of the Lawrence Tennis Association showed up at the meeting to lobby commissioners to reconsider the idea of placing lights at the Lawrence Tennis Center near Lawrence High School. (The fingertip lights are a device players use to play on unlit courts.)

And simply put, the game is back on. Commissioners agreed to put the lighting issue on a future City Commission agenda for discussion.

That’s despite the fact that it appeared for the last several months that the issue was done and decided. City commissioners have agreed to spend about $640,000 to build eight, lighted, outdoor tennis courts as part of the city’s recreation center at Rock Chalk Park.

The lights have been controversial because neighbors near the site — which is basically on the grounds of the former Centennial Elementary school at 2145 Louisiana Street — have objected to the amount of light the court lights would spill onto their properties.

But members of the Lawrence Tennis Association have been equally adamant that the city needs to follow through on a promise to light the courts. Renovations at nearby Lawrence High School caused the city to lose eight lighted tennis courts several years ago. The school rebuilt the courts in a new location, but when it came time to add the lights, neighbors voiced concerns and city officials backed off.

Some city officials thought they had solved the issue with the Rock Chalk Park project. On Tuesday, members of the tennis association said they were appreciative of the future courts at Rock Chalk Park, but said they still want lighted courts in the central part of town. Plus, they said a city of Lawrence’s size could support lighted courts both at Rock Chalk Park and the Lawrence Tennis Center. That argument upset at least one commissioner.

“When we started all of this, it always has been about the need for eight illuminated courts,” City Commissioner Bob Schumm said. “Now we have the conversation up to 16, and I’m not buying that.”

But the other four commissioners said they were fine with having a formal discussion about the idea at a future meeting. Two new members have joined the commission — Jeremy Farmer and Terry Riordan — since the commission last discussed the issue. Neither Farmer nor Riordan indicated a position on the idea Tuesday.

“But I had a meeting with the neighborhood group a few weeks ago, and it seems to be pretty adamantly opposed to this,” Farmer said. “I think the tennis court lights are the straw that is breaking the camel’s back, it seems.”

A date for the commission to discuss the issue hasn’t been set. When one is, I’ll pass it along. And when it does, forget “E.T. phone home.” It will be: Chad, phone home. It will be a late night.

Reply 61 comments from Coeurmudgeon Hear_me Bigdog66046 None2 Puddleglum Dan_coleman Glo Melott Honeybadger1 57chevy and 31 others

Bowersock to host ribbon cutting for $25 million hydroelectric power plant on Friday

Here’s one company that won’t be sad at all if it rains on its ribbon cutting.

The folks at the Bowersock Mills and Power Company will be celebrating the opening of its $25 million hydroelectric power plant on the north bank of the Kansas River at 4 p.m. Friday.

The public is welcome at the event, and so is rain. The company opened the plant — located near the north end of the downtown Kansas River bridges — in late November. But it wasn’t until early April that the plant started producing any meaningful amount of electricity.

“There was just no flow in the river,” said Sarah Hill-Nelson, an owner of Lawrence-based Bowersock Mills and Power Company. “We were in the middle of this epic drought, but since then, we have had good continued rains.”

Hill-Nelson even can remember the exact day the plant had enough water flowing through it to really crank up the turbines: April 10, her birthday. (Man, I need her to teach me how she blows out her candles. Thanks to my wife’s stubbornness, it appears a birthday wish is the only way I’m going to get a lifetime supply of Doritos and a new Lazy Boy recliner.)

The project, in case you have forgotten, has more than tripled the amount of electricity the Bowersock Mills and Power Company can produce on the Kansas River. The new plant can produce 4.65 megawatts of electricity, while the company’s turn-of-the century hydroelectric plant on the south bank of the Kaw produces 2.35 megawatts.

All of the power produced by the plant is sold to the Kansas City Board of Public Utilities, which uses it to power homes in the metro area and receive credit for having a green energy source as part of its portfolio. I know the fact that all of the power is shipped to Kansas City has bummed out some people. They thought it would be cool if Lawrence residents could use the green power that is produced in Lawrence. But the fact the power is shipped to Kansas City is one of the greater parts of the project, in my opinion. If Lawrence residents buy the power, we’re just trading money that already is in the community. If Kansas City residents buy the power, that is new money coming to a truly Lawrence-based company — and thus into the Lawrence community — on a daily basis. That’s economic development.

But my favorite part of the project is it gives us all a reason to root for dreary, rainy, muddy days in Manhattan on a regular basis. Bowersock officials keep a close eye on the weather in the Manhattan area because when it rains there, it will mean increased flows through the power plant in another day or so.

There is good news on that front, Hill-Nelson said. (No, Willie the Wildcat hasn't permanently gotten stuck in a mud wrestling pit, as far as I know.) She said Tuttle Creek Reservoir near Manhattan recently reached conservation pool stage, meaning the lake’s water level is basically back up to normal. As more spring rains come, Tuttle Creek will be able to release more water into the Kaw, which will benefit the power plant. But more rain would be helpful for a variety of reasons. Both Perry and Milford, two other reservoirs that help feed the Kaw, are still several feet below normal levels. (The latest readings I have show Perry down by about 2 feet, and Milford down by about 4.5 feet. Of course, I may be off. You try carrying that measuring stick around.)

As for Friday’s event, it runs from 4 p.m. to 5 p.m., and will include tours of the new plant. Kansas Department of Wildlife, Parks & Tourism Secretary Robin Jennison will make remarks about the project, and so will an official from the national hydroelectric power association. The Lawrence Chamber of Commerce is hosting the ribbon cutting, but Hill-Nelson said the event is open to both chamber and non-chamber members. She asks that members of the public who want to attend send an RSVP to RSVP@bowersockpower.com.

Reply 7 comments from Homechanger Mikekt Quiviratrail Chad Lawhorn Krichards Frankfussman Jackpot

City to use eminent domain to take over dilapidated East Lawrence property; Just Food seeks $25,000 in CDBG funding to expand dairy, meat offerings

Well, Town Talk is playing catch-up today. As I previously reported, I was off on Friday to help park cars at the annual Lawrence Auto Swap Meet. And I was off on Monday to clean mud out of places that I didn’t know I had. So, that leaves us with several items of note on tonight’s Lawrence City Commission agenda to update you on. Here’s a look:

• The city is continuing to move down an unusual road in its efforts to see that a piece of East Lawrence property is cleaned up. The city is going through the process of using eminent domain to take over ownership of the property at 1106 Rhode Island St.

For those of you trying to picture the location, it is just east of the Judicial and Law Enforcement Center. Or perhaps some of you remember it as the property that for years had multiple old Packard automobiles stored in its overgrown backyard.

The property — owned by the Barland family, which once owned the city’s Packard dealership — has a house and a barn. The house hasn’t been lived in for years, and its condition has been deteriorating.

The city has taken code enforcement action against the Barlands, but the city finds itself in an odd situation. Usually, the big hammer in a code enforcement case of this nature is that ultimately the city can declare the property unsafe and order it to be demolished. But in this case, the property is of a historic nature. The house dates back to 1871, and was owned by one of the city’s more prominent Irish businessmen — Rhody Delahunty, who operated his successful dray wagon business from the site.

Such history makes it likely that the city’s Historic Resources Commission would balk at tearing down the structures. The city has asked the Barland family to come up with ideas to either refurbish/redevelop the property or sell it to someone who is willing to do so. The family hired an architect to come up with proposals, but it hasn’t committed to any of the ideas. It also hasn’t been willing to sell the property, although it has attracted interest from the Lawrence Preservation Alliance.

So, commissioners in February started the process to use eminent domain to acquire the property. At tonight’s meeting, commissioners are being asked to take the next step: authorizing staff members to file a petition with Douglas County District Court that would start the legal proceedings.

The way the process works is that the court will come up with a price that the city must pay for the property. The process can be stopped at any time, if the Barlands and the city come to an agreement on the future of the property.

As for what the city would do with this deteriorating piece of property, that’s not entirely clear. City officials have said their plan would be to accept proposals from parties interested in restoring the property. The most common ideas have been for the property to be restored as a residence, and the barn perhaps as an artist studio or some other type of work space.

We’ll see how the process goes. The city certainly uses eminent domain to purchase easements for roads and utility projects where it can agree on a price with a landowner. But in my 20 years of covering City Hall, this is the first time I remember eminent domain being used to purchase a rundown piece of property. It will be interesting to see if this is the beginning of a new trend because there’s certainly more than one rundown piece of property in the city.

• Here’s a case where eminent domain wasn’t needed. The city is beginning to purchase easements to run a major water line from the Kaw Water Treatment Plant, across the Kansas River and into North Lawrence.

On tonight’s agenda, the city commission is set to approve paying $80,600 for 25,530 square feet of property. The property is vacant commercial property at 1000 N. Third Street, which is just south of the I-70 Business Center. The property is owned by a trust controlled by Lawrence businessman Samih Staitieh.

The price for the property — it pencils out to $3.15 per square foot — was based on independent appraisals. More purchases for the water line project are expected. The multimillion-dollar project is designed to provide an additional main water line to North Lawrence.

• The recent election of City Commissioner Jeremy Farmer has created an extra piece of paper work for Lawrence City Hall. Commissioners tonight are being asked to approve a conflict of interest waiver that will allow Farmer’s employer to apply for Community Development Block Grant Funding.

Farmer is the CEO of Just Food, the not-for-profit food bank that serves the county. A city advisory board is recommending that Just Food be awarded $25,000 in CDBG funding to buy a refrigerated food truck. But in order for the organization to receive the funding, the city must send a form to the U.S. Department of Housing and Urban Development disclosing the conflict of interest and why the money should be awarded to the agency.

The more interesting part is what the truck will allow Just Food to do. Farmer told me the truck will be used to go to grocery stores, restaurants, convenience stores and other locations that often have to dispose of aging meat, dairy and produce.

Currently, Just Food doesn’t have a way to transport refrigerated material from the stores to its distribution center in East Lawrence. Consequently, Farmer estimates grocers and other are throwing away “thousands of dollars of food per week.” Most of the perishable items are pulled off the shelves several days before their expiration dates, which gives Just Food time to distribute it to needy families.

Farmer said the program is expected to significantly increase Just Food’s ability to provide milk, eggs, butter, meat and some produce to families.

“This is going to be a huge, huge deal for us,” Farmer said. “I haven’t seen butter and eggs down here in a long time.”

Farmer hopes to have the truck later this summer, but he said the timeline is dependent upon Washington, D.C.. Administrators with the CDBG program are watching to see if the sequestration delays or cuts the amount of funding available to the CDBG program.

City commissioners meet at 6:35 p.m. tonight at City Hall.

Reply 33 comments from Windjammer Barland Budwhysir Deec Oneeye_wilbur Frankie8 Jafs Stedman Charlie Bryan Verity and 12 others

Lawrence homes sales up 24 percent; selling prices also on the rise

The Lawrence real estate community hit a significant milestone in March. It was the 12th straight month that the Lawrence real estate market has posted year-over-year sales gains.

According to the new report from the Lawrence Board of Realtors, there were 76 homes sales in March, up nearly 29 percent from the 59 sales made in March 2012.

Those numbers helped make for a strong first quarter. During the first three months of the year, 159 homes sales were recorded in the city, a 24 percent increase from the same time period a year ago.

It was about this time last year that the real estate market started making an upward climb, but back then the market was being fueled, in part, by sellers lowering their pricing expectations.

Now, the numbers indicate homes prices are on the rise as well. The median sale price on Lawrence homes in the first quarter was $165,000, up about 7 percent from the same period a year ago. Average sale prices should be taken with a grain of salt, because they are pretty dependent on the particular types of home being sold at the time. But still it is a number still worth watching.

Another number showing signs of a rebound is the average number of days a home sits on the market before it sells. The median days on market in March dropped to 68 days, down from 94 during March of 2012.

Several Realtors report the number is dropping because many homes have sold in just a matter of days. That must be the forces of supply and demand kicking in, because the supply of homes for sale on the Lawrence market is now at a two-year low.

The report found the number of active listings in Lawrence fell to 408, down from 578 in March 2012 and from 615 in March 2011.

All in all, local real estate agents seem to be genuinely pleased with the numbers.

“We need more new-construction homes and resale home listings to satisfy the demand,” said John Esau, president of the Lawrence Board of Realtors and an agent with Keller Williams Realty. “It has been a long time since we could say that.”

Now, we’ll wait and see how the rest of the important spring and summer buying season plays out. We'll see whether local agents can expand upon their streak of consecutive months of sales increases. But the report indicated that sales were going well in April. Real estate agents had written contracts for 123 homes sales in April, up from 98 in April 2012.

•••

Let me take care of a quick housekeeping matter here. (My wife’s ears just perked up. She would tell you my idea of housekeeping is making sure I put a chip clip on the bag of Doritos I keep next to my La-Z-Boy.) Town Talk will be off for the next couple of days. It will return on Tuesday.

Feel free to find me on Friday. I’ll be parking cars as part of a Eudora 4-H project at the Lawrence Auto Swap Meet at the Douglas County Fairgrounds. (It runs Friday through Sunday.) Then you can help me find a fender for a ‘66 T-Bird.

You can also try to find me on Monday, if you want. I would look in a dog house. That’s where I 'm usually forced to keep house in the days following the swap meet.

Reply 23 comments from Bad_dog Catalano Gccs14r Oneeye_wilbur Phoghorn Chad Lawhorn Perses Pwopellewcap Kansasliberal Navyvet and 2 others

Duo has plan to convert Teller’s into gastropub with heavy emphasis on craft beers; Papa Murphy’s opens with special event for Boys and Girls Club today

In Lawrence, beer is art. If you don’t believe me, drive through certain neighborhoods and behold the beer-bottle pyramids erected on many a front porch.

Well, it looks like Lawrence beer lovers may soon have another way to express their love for the beverage: a gastropub.

A deal is in the works to convert the longtime, downtown, upscale restaurant Teller’s into a gastropub that focuses on Midwest food and an extensive list of libations, led by a large lineup of craft beers.

The idea for the new restaurant comes from T.K. Peterson, the former executive chef of The Oread, and Philip Wilson, the operating manager of Teller’s.

Peterson left his position at The Oread last week, and if all goes as planned, he’ll join Wilson at Teller’s next month.

“It is a concept that I’m passionate about,” Peterson told me. “We feel like Lawrence needs a new restaurant concept like this, but really why it comes down to this is the type of food I like to cook.”

What type of food will that be? I don’t know. My mind was still on the beer. (What can I say? I’m a dedicated patron of the arts.) Peterson said the plan is for the restaurant to work with the usual brewers and develop relationships with many small-batch breweries, and perhaps even have some special batch brews created just for the restaurant.

Notice that I have used the word “plan” quite a bit here. Some details are still being worked out on this deal, but Peterson and Wilson agreed to share a few details with me because the rumor mill had started to crank up about the future of Teller’s and whether it was set to close.

As it is currently envisioned, Teller’s, 746 Massachusetts St., is scheduled to close temporarily for a major renovation. Wilson said the closing likely would take place around July 1 and the business would reopen in its new form before the students arrive in late August.

As for whether the new restaurant will keep the Teller’s name, Peterson said that hadn’t been decided. “We don’t know on that yet, but it is hard to ignore the kind of name recognition Teller’s has, not only locally but really with alumni across the country.”

The project will be a bit of a homecoming for Peterson. He worked at Teller’s while attending the Culinary Institute at Johnson County. In total, Peterson has about 12 years on the Lawrence food scene, including stints at the former upscale French restaurant Bleu Jacket at The Eldridge and for the last 17 months as the executive chef at The Oread.

It sounds like this project will be one to watch in the coming months. I’ll update you as a I get more information.

•••

On another restaurant note, those of you who want some pizza and don’t want to get out of the car to get it are in luck. As we previously reported, Papa Murphy’s Take ‘N’ Bake Pizza is one of the tenants opening in the new retail building at 650 Congressional Drive, which is just west of the Famous Dave’s BBQ location at Sixth and Wakarusa.

Well, Papa Murphy’s is now open at the location. (Wireless Zone, a Verizon Wireless phone dealer, is also open at that site. Other tenants for the location will include Prime Martial Arts and Meritrust Credit Union.) But back to pizza. Papa Murphy’s is hosting a special event today, where 20 percent of all sales made at the shop will go to benefit the Boys and Girls Club of Lawrence.

As for the part about having the pizza placed right in your car, the location has a drive-through, which is a new concept for Papa Murphy’s in Lawrence. But hopefully you realize the “Take ‘N’ Bake” in Papa Murphy’s name means you have to cook the pizza yourself.

I don’t know about your vehicle, but my old F-150 doesn’t have an oven (or a working cassette player or a rear view mirror or brakes), so you may still have to get out of your vehicle to enjoy the pizza.

Or maybe not. I’ll ponder on it a bit. It is a beautiful May day. Perhaps I’ll do some pondering with a piece of pizza and a healthy dose of art, if you know what I mean.

Reply 57 comments from Hipgrrrrl Azores Oldbaldguy Overplayedhistory Marcopogo Beatnik Larrynative Riverdrifter Gccs14r Pwopellewcap and 26 others

Lawrence ranked second-worst-performing small metro area, according to new national economic index

Call it a rankings rut, and this one is pretty deep for the city of Lawrence.

A new national study has ranked Lawrence as the second-worst-performing small metropolitan area in the nation, based on a variety of economic measures. The Milken Institute ranked Lawrence 178 out of 179 metro areas in its most recent Best Performing Cities index. A web site for The Atlantic this week had an article analyzing the results.

This latest report adds onto the negative news released earlier this month by the U.S. Bureau of Economic Analysis about Lawrence’s gross domestic product. It ranked 339th out of 366 metro areas, and was shrinking.

The Milken report uses some of the same types of economic numbers to create its index. But it places a particular emphasis on an area in which Lawrence is supposed to be positioned to excel: high-tech, knowledge-based jobs.

Simply put, the report found we aren’t excelling in that area. In fact, Lawrence didn’t excel in any area.

Over the course of the past year, Lawrence’s ranking in the report fell 79 spots, from No. 99 in the 2011 report to No. 178 in the most recent index. Only three other cities — Ithaca, N.Y., Great Falls, Mont., and Hot Springs, Ark. — had sharper declines than Lawrence’s.

The report takes a look at nine different categories, and Lawrence didn’t crack the top 100 in any of them. Here’s a look:

• Five-year job growth: No. 107

• One-year job growth: No. 172

• Five-year wage growth: No. 101

• One-year wage growth: No. 158

• One-year job growth percentage: No. 156

• Five-year high-tech GDP growth: No. 170

• One-year high-tech GDP growth: No. 151

• High-tech GDP as part of overall GDP: No. 164

• Concentration of high-tech companies: No. 148

I know how you all like comparisons, so I have gathered the rankings for several regional communities. I would ask for a drumroll, but the drama already has been sucked from this. Since Lawrence is second to last — last place was Carson City, Nev. — I’m guessing you’ve already deduced that every city in the region ranked ahead of us.

On a positive note, Manhattan, which has been on a roll in these type of rankings, wasn’t included in this index, likely because its population wasn’t quite large enough to qualify. But fear not, here is something for you to gnash your teeth over: Columbia, Mo., ranked No. 10 on the small cities list. Here’s a look at others:

• Iowa City, Iowa: No. 16

• St. Joseph, Mo.: No. 29

• Waco, Texas: No. 31

• Joplin, Mo.: No. 44

• Ames, Iowa: No. 61

• Topeka: No. 144

Several of the cities Lawrence often compares itself to, or at least watches, were included in the list of 200 large cities. Here’s how some of those cities fared in the rankings:

• Fort Collins, Colo.: No. 12

• Boulder, Colo.: No. 15

• Lubbock, Texas: No. 20

• Oklahoma City: No. 32

• Madison, Wis.: No. 71

• Lincoln, Neb.: No. 81

• Kansas City: No. 104

• Tulsa, Okla.: No. 118

• Springfield, Mo.: No. 144

• Wichita: No. 146

Take these rankings for whatever you think they’re worth. These indexes all have their own biases about what they think are the most important economic indicators. This one seems to be heavily focused on wages and high-tech business indicators. For what it is worth, those are two areas I hear local leaders emphasize a lot as well.

Another factor to remember is that this index — like all of them — is based on data that sometimes has some age to it. Most of the job growth numbers date back to 2011, and some of the wage numbers date back to 2010. It was no secret that Lawrence struggled during those periods. It also is worth remembering that Lawrence basically has entirely revamped its economic development team since that point.

Plus, some recent indicators have been more positive. Retail sales tax collections in 2012 had their best growth since the mid-1990s, there’s been a significant decline in Massachusetts Street vacancies, Hallmark Cards is in the process of shifting about 200 workers to its Lawrence plant, and even home sales and building permits have showed signs of a rebound.

Yes, I’m trying to put a little cheer in your Kool-Aid. But only for a moment. I’ll leave you with a finding from the report that ought to leave Lawrence leaders scratching their heads. The authors of the report noted that there were two types of communities most likely to do well in this year’s index: communities benefiting from the country’s new natural gas and oil exploration; and communities with “high concentrations of public-sector employees, especially in prominent universities.”

That second one sure sounds like us. But maybe our definition of prominent is a bit different from others. The top ranked small city, for the second year in a row, was Logan, Utah, home to Utah State University. Prominent? I don’t know. But I’m pretty sure our basketball team can beat theirs.

Reply 185 comments from Havecents Moderate Amesmb Chootspa Liberal Jackbinkelman Rvjayhawk Avarom Jafs Oneeye_wilbur and 74 others

New report finds city’s broadband market sub-par

Costlier, slower, more limited: It is bringing back memories of the teacher comment section on my report cards.

Well, this is a report card of sorts, and "costlier, slower, more limited" is the key phrase in a new study of the city’s Internet broadband market. A consulting team hired by Lawrence City Hall found that the current broadband offerings in Lawrence generally are “costlier, slower and more limited than in other comparable communities.”

Fixing that situation, however, won’t be easy. Every once in a while the idea of the city owning and operating its own high-speed Internet broadband network is brought up. In other words, the city would jump into the Internet service provider market, and compete with the likes of Knology, AT&T and others. But the city would do it with high-speed, fiber-optic cable that runs directly to homes and businesses, as opposed to the slower, more traditional copper telephone and cable lines that serve much of Lawrence.

The idea is a recurring dream for technology geeks. But the latest numbers indicate it may be nothing more than a dream for quite some time. The consultants, CTC Technology & Energy, estimate that it will cost upwards of $70 million to build and deploy such a system in the city. That’s not an impossible number — it's about $25 million more than what the city is spending for a library and a recreation center — but the consultants are urging caution in the matter. Their analysis indicates the city would have to capture at least 50 percent of the entire market share in Lawrence to break even. That would be a tough number to reach, the consultants predict.

But there are other ways the city can make itself a more desirable high-speed Internet city – which not surprisingly, the consultants said will be very important in the future. Here’s a look at some of the recommendations:

• The city could spend around $320,000 to $640,000 to complete a 17-mile ring of fiber-optic cable around the city. The fiber would allow city, county, school and university facilities access to higher-speed Internet connections. The consultants say that alone is worth the cost of the project. But if built in the right way, excess capacity on the fiber ring could be leased out to private companies that have an interest in competing against the two large Internet providers in the city — AT&T and Knology. The report found there are at least three companies that have expressed an interest in such an idea: Level 3, Kansas Fiber Network and Wicked Broadband, which already leases some fiber from the city.

• New development regulations could be written that would require builders to install more fiber-optic infrastructure as a part of their projects. Loma Linda, Calif., has created development regulations that require “cable pathways, fiber connections and internal fiber wiring” be installed as part of any major residential or commercial building project. Sandy, Ore., goes even further. It requires developers to install conduit all the way from the public right-of-way to the home, and then deed that conduit to the city. The idea is that when fiber-optic projects reach a neighborhood, the most expensive part of the process already will be complete, courtesy of developers. The report estimates any new regulations would be a “small burden” to developers. We would see about that, but usually new regulations for developers produce something a bit larger than a “small debate” at City Hall.

• Sucking up to Google may be a good idea. The Google Fiber project in Kansas City is all the buzz in the tech world. The consultants said the city should at least make a more serious effort to have Google consider expanding the project to Lawrence. Google recently did announce that it was expanding the service to Olathe. The consultants reached out to the community manager for the Google Fiber project, and she asked that the city send a formal letter of interest to enter into discussions with Google about an expansion.

As for what the report had to say about Lawrence’s existing broadband providers, it wasn’t much different than what many ordinary folks say. The report found AT&T’s offerings are more limited than in several other comparable communities. With Knology, the consultants found the company’s base pricing is reasonably competitive with other markets, but its use of data caps on many plans makes it less competitive. The report didn’t provide any analysis of the recently-announced pilot project by Wicked Broadband to extend fiber to at least one neighborhood in Lawrence.

The report made several other recommendations and findings, but they were of a technical nature that went beyond my “costlier, slower and more limited” mind.

City commissioners will get a chance to digest the report soon. The City Commission is expected to formally receive the report and discuss possible next steps in the next several weeks.

Reply 21 comments from Liberty275 Mike1949 Gareth Blackcopter Jp9219 Bursting Gatekeeper Marcopogo Andini Chootspa and 11 others

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