Meeting Information
-Convene
CONSENT AGENDA
(1) (a) Consider approval of Commission Orders; and
(b) Consider approval of contract for Project No. 2007-12, deck resurfacing for Bridge No. 16.00N-02.11E and Bridge No. 11.00N-13.30E (Keith Browning)
REGULAR AGENDA
(2) Consider approval to authorize the County Commission Chairman to sign all applicable documents relative to the collaborative effort involving Douglas County, LDCBA, DCDI and KBA to accommodate the growth and development of Deciphera in the Lawrence community (Matt Hoy)
(3) Receive Petition to vacate access and utility easement in Midnight Farm Subdivision and set Public Hearing date (Michael Kelly)
(4) Consider request for extending existing road right-of-way of E350 south of N1700 Road (Keith Browning).
(5) Zoning Items:
(a) Consider approval of a Temporary Business Permit to allow the sell of dried fruits and nuts from Nov. 1st, 2007 until Dec. 15th, 2007 for Donna Wade Wingert 693 E. 1250 Rd., Lawrence, Kansas. (Keith Dabney)
(b) Consider approval of a Temporary Business Permit for the 2008 Annual Old German Baptist Church Conference to be held at 1164 N 650 Rd. in Baldwin, Kansas; and the Youth Groups Gathering to be held at 615 E. 1542 Rd. in Baldwin, Kansas. This conference is to take place May 10-May 13th, 2008. (Keith Dabney)
(6) Other Business
(a) Consider approval of Accounts Payable (if necessary)
(b) Appointments
(c) Miscellaneous
(d) Public Comment
(7) Adjourn
October 24, 2007
Johnson called the meeting to order at 6:35 p.m. on Wednesday, October 24, 2007 with all members present.
CONSENT AGENDA 10-24-07
Jones moved approval of the following Consent Agenda:
► Commission Order No. 07-164 (on file with the office of the Clerk); and
► Contract for Project No. 2007-12, deck resurfacing for Bridge No. 16.00N-02.11E and Bridge No. 11.00N-13.30E.
Motion was seconded by McElhaney and carried unanimously.
BIOSCIENCE & AGREEMENTS 10-24-07
The Board considered approval to authorize the County Administrator to sign all applicable documents relative to the collaborative effort involving Douglas County, Lawrence/Douglas County Bio-Science Authority (LDCBA), Douglas County Development Inc. (DCDI) and Kansas Bio-Science Authority (KBA) to promote the potential growth and development of Deciphera in the Lawrence community. Laverne Squier, President Lawrence Chamber of Commerce, and Matt Hoy, Stevens and Brand, were present for discussion. Deciphera Pharmaceutical L.L.C. has entered into an agreement with DCDI to purchase the property located at 3813 Greenway Drive, Lawrence, Kansas, in the East Hills Business Industrial Park. Squier stated the goal of LDCBA, a local Bio-Science organization, is to accomplish many of the same missions as the KBA. They are about the commercialization of opportunities and taking the intellectual properties that come out of Kansas University and other parts of the community to advance to a stage where jobs are created in Lawrence and Douglas County, with investments residing locally. There are seven agreements in total, four affecting the County. The City acted upon the agreement on October 23, 2007 passing with a 4-0 vote. Squier stated that City/County funding will help keep the company, create jobs and aid in their growth through time. The KBA announced Deciphera as the premier bio-science opportunity in the State of Kansas.
Johnson asked on the 4-0 vote if someone abstained from voting. Squier answered the Mayor abstained due to a personal interest in project.
Jones asked the County Administrator the dollar amount set aside in the County budget for this project. Craig Weinaug, County Administrator, responded 1.25 million over 10 years, which is $125,000 per year. Squier added that the total dollar amount has not changed. What changed is that it was thought that the KBA would buy the building. Decipher is now buying the building. KBA is putting in an equal share to the community and City sources will be about $2 million, or half the amount. The other half is something LDCBA can generate from unallocated funds left from not having to purchase the building and not finishing its interior.
Jones asked for the entire maximum exposure for the next 10 years the County will payout for this project, including the performance and tax rebatements. Squier stated $125,000 per year for 10 years. Jones stated by law abatements expire after 10 years. He questioned if it is possible for Deciphera to take this rebate for 10 years and then seek abatement and go on for an additional 10-20 years. Squier stated the hearing body (City) and the tax abatement unit bodies (County and the School District) would have an opinion about that. Clearly he stated he would think that type of proposal would fail.
Johnson stated on this project, with this building, these jobs, the 10-year period, with the performance agreement in place, the answer is "no" Deciphera would not be in a position to come forward and ask for a tax abatement. At the end of 10 years, this project is done. But, anytime within the 10-year period or after, if Deciphera would put a new plan on the table with another building or another project, they could go through the process to request a new tax abatement, and it would have to follow the process in place at the time.
Jones asked if this approach to providing tax relief is unique to this project or will this be a Standard Operating Procedure (SOP) on how we deal with taxes. Are we setting precedent for a new type of abatement process1/2 Squier replied he d s not believe we want this to be a SOP. We need to review on a case to case basis. Squier added the net taxes Deciphera will pay are more than if they came in and asked for the minimum amount under the abatement policy.
Jones asked what would happen to the agreement if someone purchases Deciphera. Squier stated the agreement is not assignable. A purchasing company could not take over and continue to receive the benefits. If they move operations out of the State of Kansas, Deciphera will owe grant monies in some areas back to the Bio-Science Authority. Jones asked Squier if he was comfortable that there is an enforceable provision to keep the Deciphera world headquarters in Kansas. Squier responded he thinks so. He explained that the KBA is really the front group on the larger investment being the $3,000.000 grant which g s to Deciphera. One half of the money is ours, one half is KBA. KBA is actually fronting our money, financing it first of all. KBA is the collector and enforcer of those dollars. There is a state statute that talks about what happens if they leave early. We are having to make some reliance on KBA's ability to enforce.
McElhaney questioned who during the 10-year process would be reviewing to see if Deciphera is meeting certain goals and objectives required for the tax rebatement. Squier responded Deciphera will report to several groups including the consortium, LDCBA, on which sits the City, County, Kansas University and the Chamber of Commerce.
Jones asked Squier to explain the Right of First Refusal process. Squier stated Deciphera saw themselves as a small company with great growth opportunities and plans to grow into the balance of the building. They want to know at some point if they can have the opportunity to buy the land adjacent to either side of the main building or across the street. Those are the Rights of First Refusal in the contracts. The Right of First Refusal can be triggers by DCDI, if they have another buyer for the properties. Deciphera would have the right to meet or exceed the offer and displace the buyer of the property. However, if Deciphera buys the properties they can not sit them and hold them in perpetuity.
Jones clarified that Deciphera would have a right to match the property and that DCDI would be in control of the property. Squier agreed.
Johnson stated, "This is different. This is economic development activity. It is consistent with everything we've been doing in the City and the County, and DCDI for years, but it's different because it is bio-science and it is a higher risk. If Deciphera becomes wildly successful, it could be purchased and end up on the east or west coast. But that is the nature of the game. We hope that won't happen. We're hoping Deciphera will grow and prosper in our community and remain in our state." Johnson stated he is comfortable with what they're doing and why. However, this is a high risk opportunity, with possible high returns and high rewards. Johnson stated he believes for us in the community, it is the future.
Jones asked when Deciphera plans to be in the building. Squier replied in 2008.
Jones moved to approve entering into contracts with DCDI and Deciphera, and directed the County Administrator to sign on behalf of the Board of Douglas County Commission. Motion was seconded by McElhaney and carried 2-0, with Johnson abstaining from the vote due to a financiall interest in the project.
ZONING & CODES 10-24-07
Jones moved to approve a Temporary Business Permit to allow the sell of dried fruits and nuts from November 1, 2007 until December 15, 2007 for Donna Wade Wingert located at 693 E. 1250 Road, Lawrence, Kansas. Motion was seconded by McElhaney and carried unanimously.
ZONING & CODES 10-24-07
The Board considered approval of a Temporary Business Permit for the 2008 Annual Old German Baptist Church Conference to be held at 1164 N 650 Road and Youth Groups gathering to be held at 615 E. 1542 Road both in Baldwin City, Kansas. The conference is scheduled to take place May 9-May 13, 2008. Keith Dabney, Director of Zoning and Codes, stated the group had notified all the appropriated agencies, Health department, Township, Traffic Engineer and Sheriff's Department, and received to objections. The conference is expecting approximately 5,000 participants. Discussion included sufficient number of port-a-potties for attendees and preparation made for gray water. Dabney recommended approval of the permit.
McElhaney moved to approve the Temporary Business Permit for the 2008 Annual German Baptist Conference. Motion was seconded by Jones and carried unanimously.
PUBLIC WORKS 10-24-07
The Board received a petition to vacate an access and utility easement in Midnight Farm Subdivision located in the northwest quadrant of the intersection of N600 Road and E2100 Road. Phil Struble, LandPlan Engineering, was present for discussion. The original access and utility easement was based on the construction of eight homes. The new plan configuration calls for four homes. The property owners wish to relocate the platted access/utility easement to a location that better suits the current configuration. In order to relocate, the existing easement must be vacated.
Johnson moved to accept the petition to vacate an access and utility easement in Midnight Farm Subdivision and set the public hearing date for Wednesday, November 28, 2007. Motion was seconded by Jones and carried unanimously.
PUBLIC WORKS 10-24-07
The item request to extend the existing right-of-way for E350 South of N1600 Road was deferred and will be rescheduled at a later date.
ACCOUNTS PAYABLE 10-24-07
Johnson moved to approve accounts payable in the amounts of $539,046.64 paid on 10/15/07; and $605,019.05 paid on 10/22/07. Motion was seconded by Jones and carried unanimously.
MISCELLANEOUS 10-24-07
The Board noted there will be a Baldwin City Comprehensive Plan Meeting to be held at the Baldwin City Library at 7:00 p.m.
Johnson moved to adjourn the meeting; Jones seconded and the motion carried.
____________________________ ____________________________
Bob Johnson, Chairman Jere McElhaney, Vice Chair
ATTEST:
_____________________________ ____________________________
Jamie Shew, County Clerk Charles Jones, Member
Time and Date