City leaders to consider development incentives request for businessman hoping to move corporate HQ into former Borders building

photo by: Chad Lawhorn/Journal-World

Lawrence businessman Doug Compton hopes to move the headquarters for his two businesses, First Management and First Construction, into the former Borders bookstore space at Seventh and New Hampshire streets.

Lawrence leaders this week will consider a request from a local businessman for incentives to help him convert a downtown building into a corporate headquarters for his companies.

The only item on the regular agenda for Tuesday’s Lawrence City Commission meeting is a public hearing on the establishment of a Neighborhood Revitalization Area at 700 New Hampshire St. and the authorization of Industrial Revenue Bond financing to provide access to a sales tax exemption on project construction materials.

That building is the former site of the old Borders bookstore at Seventh and New Hampshire streets, which has largely stood vacant since the bookstore closed more than a decade ago in 2011. A group led by Lawrence businessman Doug Compton has been hoping to turn it into the corporate headquarters for First Management and First Construction. But the redevelopment has stalled as Compton sought an incentives package through the city’s Neighborhood Revitalization Act — a 90%, 15-year tax rebate — and via bonds to offset construction material and labor costs.

The request last appeared on a City Commission agenda in early July, but was deferred at the time at the applicant’s request. That may be because one advisory board was recommending city leaders opt against supporting the tax rebate. The city’s Public Incentives Review Committee previously voted against recommending the City Commission approve the Neighborhood Revitalization Area by a 2-3 vote, but did vote 4-1 in favor of recommending approval for the Industrial Revenue Bond.

Since then, the Neighborhood Revitalization Area request has been updated to reflect a 65%, 15-year tax rebate instead.

Neighborhood Revitalization Areas, according to the city ordinance that established a policy for them, are intended to “promote reinvestment and revitalization of properties which in turn have a positive economic effect upon a neighborhood and the city in general.”

City staff seems to think this project qualifies on that front, according to the agenda item report for this week’s meeting. The corporate headquarters would support 80 current staff members, and it would also be able to accommodate future employment expansion that adds another 21 full-time positions.

“The redevelopment project will meet one of the city’s goals of increasing adaptive reuse and providing employment creation,” the report reads. “In addition, the redevelopment of a historically underutilized parcel into productive use will enhance the local economy, producing adequate returns on the investment of public dollars in the short term and substantial returns in the long term.”

The report also notes that the group plans to “maintain the character of the building” and preserve historic elements like an existing livery stable wall, while at the same time estimating a capital investment for the project of $4.3 million. The project plans, in part, call for a complete interior remodel, a second-story addition adding about 30,500 square feet of usable space and a new entrance.

The city, Douglas County and the Lawrence school district all must individually consider participating in a Neighborhood Revitalization Area, along with the rebate percentage and duration for each of their taxing jurisdictions. That means the Douglas County Commission and Lawrence school board will have to host their own public hearings before the City Commission takes any final action.

Tentatively, that could occur at the Aug. 15 City Commission meeting, depending on whether the hearing is on the agenda for the other two governing bodies at their upcoming meetings.

In other business, the commission will:

• Consider adopting a resolution that amends the rules for City Commission meeting procedures related to items on the consent agenda.

If the resolution is approved, items on the consent agenda, which are usually approved all at once without further discussion or individual motions, can only be removed for public discussion by a member of the City Commission. As it stands, a member of the public can remove any item on the consent agenda, including things like meeting minutes and the city’s accounting claims.

The amended rules would, however, allow members of the public to remove items where the City Commission sits in a “quasi-judicial capacity” for public discussion. It’s unclear what kinds of items that definition may apply to, but an agenda item report for the resolution notes that such items would be identified on future consent agendas.

• Consider adopting on final reading Ordinance No. 9999, declaring the City of Lawrence a “safe haven for all persons from the effects of discriminatory acts, legislation, regulation and other actions.”

As the Journal-World reported, the City Commission voted unanimously to approve that ordinance on its first reading at its July 18 meeting. The ordinance was crafted following significant public outcry about SB 180, the law passed by the Kansas Legislature earlier this year that bans transgender people from using the bathrooms and other gender-specific areas associated with their gender identity.

The ordinance is on the agenda for this week’s meeting for final approval after being subject to minor changes clarifying that the city won’t assist or cooperate in any efforts related to SB 180 by any jurisdiction having authority to enforce it.

The Lawrence City Commission will convene at 5:45 p.m. Tuesday at City Hall, 6 E. Sixth St.