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City approves intent for $35 million IRBs and PILOT to help keep AMR’s Lawrence plant
Summary
After a public hearing, the commission adopted a resolution and advanced an ordinance on first reading to authorize up to $35 million in industrial revenue bonds and a payment-in-lieu-of-taxes structure intended to secure AMR’s purchase of its Lawrence facility and support future local investment.
The Lawrence City Commission conducted a public hearing on a request by AMR, a garage‑door manufacturer with a 35‑year presence in Lawrence, seeking industrial revenue bonds (IRBs) as conduit financing and a payment‑in‑lieu‑of‑taxes (PILOT) schedule to support acquisition of its current facility.
City staff explained the Phase 1 request covers acquisition of the existing leased facility and continuing operations in Lawrence; Phase 2 expansion was described as a separate future request. Staff recommended authorizing up to $35,000,000 in IRBs and approving the proposed PILOT, which would start at the current property‑tax level and escalate by 2.25 percent annually, with payment split pro rata among taxing jurisdictions according to their mill levies. Bond counsel Kevin Whitby clarified that state law shields up to eight school‑district mills from abatement and that the PILOT starts at an estimated tax payment "a little over $630,000" under the agreement.
AMR representatives emphasized local jobs and community ties: "We provide jobs...we provide hope opportunities for our families," a company representative said, noting AMR employs more than 750 people and purchases locally. Commissioners asked about enforcement if AMR failed to meet expansion or investment milestones; staff said remedies in the agreement could include termination of the PILOT and IRB‑related benefits unless the company sought and received an extension from the commission.
A motion to conduct the public hearing, adopt the resolution of intent (No. 7669) and advance Ordinance No. 10214 on first reading to authorize the IRBs and PILOT passed 4–0. Staff and the company said no sales‑tax exemption was requested for Phase 1 and that IRBs would not constitute debt or obligation of the city.
