photo by: City of Lawrence

The Lawrence City Commission discusses the city's Catalyst Incentive Program as part of its meeting Feb. 1, 2022.

Crediting it for helping spur recent additions at the city’s business parks, Lawrence city leaders have extended a fast-track economic incentives program.

As part of its meeting Tuesday, the Lawrence City Commission voted unanimously to authorize an extension of the Catalyst Incentive Program for another three years, until April 1, 2025. Commissioners agreed that the program was valuable, both for the new industry it has brought to VenturePark and East Hills Business Park and for the financial benefits for the city.

“I think it has shown its worth and I think it’s something we should continue,” Commissioner Brad Finkeldei said.

Finkeldei said he thought that the program’s upfront requirements and incentives package allowed companies to know exactly what was available, which he thinks has meant the city has gotten more looks than it would have otherwise. Finkeldei, along with Vice Mayor Lisa Larsen, also emphasized that the program was helping fill vacant lots that carried special assessments for infrastructure costs that the city would otherwise be responsible for.

Larsen, who was on the commission when the incentives program was initially approved in 2017, noted that before the program was in place, VenturePark had been sitting vacant for years, putting the city on the hook for close to $10 million in special assessments. Larsen said helping pay those down was another key benefit, and she credited the program with increased interest in VenturePark.

“When this program was brought forward and we actually passed it, it was within a few months that we started getting applications and interest in getting that park filled,” Larsen said.

Projects currently participating in the program are now responsible for an estimated $2.26 million in Lawrence VenturePark special assessment fees, according to a city staff memo to the commission. Larsen asked city staff how much in special assessments the city was still responsible for, and was told that number was not immediately available but that a report could be brought back to the commission.

Since the program was introduced, the city has approved incentives for new construction or expansions for VanTrust, Plastikon Healthcare, Grandstand, U.S. Engineering, and Standard Beverage. All the projects are in either VenturePark or the adjacent East Hills Business Park. The commission first extended the program in 2019 and also added minimum investment thresholds at that time.

The program applies to vacant property or existing businesses in the two business parks, as well as other industrially zoned property in Lawrence. Approved projects can receive either a 50% or 70% property tax abatement for 10 years, sales tax exemption on construction materials, and waiver of all associated application fees. The program also provides free land for companies that choose to build in VenturePark or East Hills.

Under the program’s shortened review and approval process, companies bypass the city’s regular economic incentives policy requirements and the commission approves incentives directly. When the program was introduced, city staff and local economic development leaders argued that the city’s usual economic incentives policy could not accommodate companies that wanted to construct an industrial building “on speculation” before tenants were identified and job information was known.

Companies that have participated in the program have typically provided information about the jobs their projects will provide, but there are no required job thresholds or tracking. Mayor Courtney Shipley asked whether the city should require companies to report job information so the city had a gauge for how the well the program was working. After a discussion about the thinking behind the initial program requirements and how some expansions, such as additional warehouse space, may not add many additional jobs but do support an existing employer, commissioners did not make any changes to the program requirements.