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Lancaster Council approves franchise, transit agreement, development deal and Fire Station No. 4 preconstruction work

Lancaster City Council · July 28, 2025
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Summary

At its July 28 meeting council approved a second-reading franchise renewal for Encore, an interlocal transit agreement with Star Transit ($141,531 annual not-to-exceed cost), a development agreement and zoning amendment for 405 Hannah Lane, and preconstruction CMAR services for Fire Station No. 4; consent agenda items C1'C8 passed as read.

Lancaster's City Council approved multiple operational and development items during its July 28 regular meeting, including a multi-year franchise for Encore, a transit partnership with Star Transit, a development agreement tied to a hotel and car wash site at 405 Hannah Lane, and preconstruction services for a new fire station.

Franchise renewal: On a second reading council approved an ordinance renewing the city's franchise with Encore (the franchise was described as a transition of the prior agreement), allowing the company to continue utility operations in the city right-of-way under a contract that runs through Oct. 31, 2045. City staff said the agreement was prepared in consultation with city legal counsel representing similarly situated cities; council approved the measure by voice vote.

Star Transit interlocal agreement: Council approved an interlocal cooperation agreement with Star Transit to restore or provide weekday public transportation service to Lancaster. Staff presented an option that would provide weekday service roughly between 6 a.m. and 6 p.m., with a monthly city cost of $11,794 and an annual not-to-exceed amount of $141,531 for FY25-26; staff noted available federal funding would subsidize part of the cost. A council member representing a district with prior Star Transit riders voiced support; the council approved the agreement by motion.

405 Hannah Lane development agreement and zoning amendment: Council repealed a prior development resolution and authorized a new development agreement with Glenda Investments Inc. for a 5.43-acre tract at 405 Hannah Lane to govern phasing, building materials, landscaping and amenities for a proposed hotel and car wash. In a companion zoning amendment (Z25-14) the council approved revised hotel components presented by the applicant: a Homewood Suites by Hilton (4 stories, 107 rooms, roughly 63,409 sq ft, ~62'63 ft tall) and a Courtyard by Marriott (4 stories, 107 rooms, a proposed 10,000-sq-ft conference space) and an increase in parking from 222 to 226 spaces. The Planning & Zoning Commission had recommended approval with design-related conditions; staff concurred and council approved with the recommendations.

Fire Station No. 4 CMAR award: Council approved entering a preconstruction services agreement with Balfour Beatty (construction manager at risk) to perform preconstruction and design-phase services for Fire Station No. 4 at Beltline Road and Lancaster-Hutchins Road, authorizing execution of the initial documents for preconstruction work (not to exceed $10,000). Staff said the project will return with a guaranteed maximum price for council approval after the preconstruction phase.

Consent agenda and other procedural items: Council approved consent agenda items C1 through C8 (minutes, resolutions, fee waivers, RFP awards, and related items) by voice vote. The applicant requested tabling of item 14 to Aug. 11; council granted the request.

Most approvals were recorded by voice vote in the transcript; individual vote tallies by member name were not specified in the meeting record provided.