Lawrence city commissioners on Tuesday approved tax incentives to help Q39, a Kansas City-based barbecue restaurant, rehabilitate a long-dormant downtown building.
The large building at 639 New Hampshire St. previously housed the printing press for the Lawrence Journal-World. It has been out of use and fallen into disrepair for at least a decade.
“This project qualifies for incentives because it’s a substantial investment in a vacant building in the downtown district,” Patrick Watkins, an attorney representing the developers, told the commission. “It’s not about a restaurant.”
The developers are requesting an industrial revenue bond to obtain an approximately $177,000 sales tax exemption on allowable construction materials and labor. They are also asking for an additional community improvement district 2% sales tax collected over 22 years, which reimburses the developer for eligible construction costs during redevelopment of the property. The tax will provide reimbursement of approximately $3 million of redevelopment costs, according to the meeting agenda.
Tom Kaleko, a Baker Tilly financial adviser working for the city, said the only cost the city could face would be from lost sales tax from materials that would be purchased within Lawrence. But Q39 would only benefit from the community improvement district from sales tax that their business generates.
“The project is expected to include approximately $7 million in private investment and support 88 new permanent jobs, including 8 managerial positions,” according to the meeting agenda.
Watkins also said Alarm.com has been looking at the Massachusetts Street side of the building and considering bringing 100 tech jobs to downtown Lawrence.
Commissioners held a public hearing on the tax incentives. Rick Renfro, owner of Johnny’s Tavern, told commissioners that people have asked him if he’s worried about another restaurant getting benefits that he hasn’t. He said the owners would be spending substantial money on the building to get it back up and revitalized, and the whole area would benefit from it.
“The more we can do to enhance Lawrence and get people to come from outside of town, and the people that are here stay and utilize our services, the better,” he said.
Vice Mayor Brad Finkeldei said he thought the project would be a catalyst, not only for the north end of downtown but for the whole New Hampshire Street corridor as well.
Commissioners voted 4-1 in favor of both tax incentives, with Commissioner Lisa Larsen opposed to both.
The restaurant hopes to open in summer or fall, according to the meeting agenda.
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Mackenzie Clark (she/her), reporter/founder of The Lawrence Times, can be reached at mclark@lawrencekstimes.com. Read more of her work for the Times here. Check out her staff bio here.
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