Lawrence Journal-World 01-13-12

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City’s retail vacancy generally improves ————

Downtown has more empty space because of Borders closing, unfilled offices By Chad Lawhorn clawhorn@ljworld.com

Businesses began filling up vacant spaces in many parts of Lawrence in 2011, but downtown Lawrence wasn’t necessarily one of them. A new study by the Lawrence office of Colliers International found the city’s overall retail, office and industrial

vacancy rates all fell in 2011, and all were significantly less than national averages. “It is not champaign-corkpopping time yet, but it is an improvement,” said Chris Kuehl, an economist with Armada Corporate Intelligence, who spoke at Colliers’ annual Commercial Real Estate Forecast Event on Thursday afternoon. “It does seem like

more businesses are thinking about the future again.” Downtown Lawrence, however, did feel the sting of a high-profile retail closing and several office tenants that left the area. Downtown’s retail vacancy rate rose from 5.3 percent in 2010 to 7.3 percent at the end of 2011, with most of the increase coming from the clo-

sure of the 20,000-squarefoot Borders store at Seventh and New Hampshire streets. “I would tell you that the rest of downtown has held pretty steady, said Kelvin Heck, a broker for the Lawrence office of Colliers. “I know a lot of people have been talking about downtown, but I don’t think the sky is falling just yet.”

The vacancy rate for downtown office space, however, has spiked to about 21 percent. Numbers for 2010 weren’t immediately available, but Heck said the office vacancy rate clearly rose during the year. Part of the increase is because a significant amount of new space came on the market. The second floor the seven-story

building at 901 N.H. is office space. Doug Compton’s First Management Inc. hopes to move its corporate offices to the space, but it is currently vacant while First Management looks for someone to take its current office space in northern Lawrence. The downtown office market also suffered a loss as Please see VACANCY, page 2A

Details of governor’s tax plan revealed By John Milburn Associated Press

TOPEKA — Republican Gov. Sam Brownback’s chief lieutenants on Thursday defended his sweeping plan to overhaul the state’s income tax code, saying they believe it would benefit all segments of society and dismissing criticism that it would unfairly reward the wealthy and businesses at the expense of the poor and working class. Brownback wants to reduce the state income tax rate for some individuals and businesses to stimulate economic growth, a plan that the second-year governor hopes leads to elimination of the tax altogether. Lt. Gov. Jeff Colyer told a joint meeting of the House and Senate tax committees that the changes Brownback would result in simpler system that treats taxpayers more fairly by reducing the rates for all taxpayers and ending credits and exemptions that benefit the few. “This is a great opportunity for the state of Kansas and it’s really how we move this state forward,” Colyer said. But Senate Minority Leader Anthony Hensley said the changes do nothing to address what he sees as the unfairness in the tax code where a person earning $30,000 pays the same rate as someone earning $30 million. “I still think there is an inequity,” said Hensley, a Topeka Democrat and member of the tax committee. The plan would end 23 tax credits, as well as exemptions and itemized deductions, including the earned income tax credit for low-income residents. The changes would begin in calendar year 2013 and be reflected in taxes filed in April 2014.

LEE CRANE, FROM OTTAWA, braved the frigid temperatures Thursday on an outing to view bald eagles in the area. Six men accompanied Jen Radar, from Prairie Park Nature Center, on the tour that started at Clinton Lake, where the eagle at top was sighted, and then to Perry Lake. Along with the eagles, the group also saw some of their nests like this one at right at the entrance to Bloomington Park on the west side of Clinton Lake. See a video from the tour at LJWorld.com.

Please see TAX, page 2A

Photos by Richard Gwin

See more on Brownback’s budget proposals on pages 3A, 4A.

Brownback’s arts funding plan offers only slight relief, critics say “

By Scott Rothschild

We’d like to see more support. Two hundred TOPEKA — Gov. Sam thousand dollars is not Brownback on Thursday proposed providing $200,000 for two million.” srothschild@ljworld.com

the arts, but arts supporters said the measure was inadequate and didn’t make up for his veto of arts funding last year. “That will not satisfy me nor anyone else who is passionate about this issue,” said Sen. Roger Reitz, R-Manhattan. But Brownback’s budget

— Sarah Carkhuff Fizell, a spokeswoman for the Kansas Citizens for the Arts director, Steve Anderson, said the proposal was an attempt to address concerns of arts supporters. “We actually listened to

programs would be provided by selling arts supporter license plates and a tax checkoff. Last year, Brownback vetoed the Legislature’s $689,000 appropriation to the Kansas Arts Commission, making Kansas the first state in the nation to end state funding of arts programs. He said that arts funding was not a core function of government, that private fundraising could replace the state funds, and that the state would still be

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what was said,” Anderson said. Brownback has proposed moving $200,000 to a new entity called the Creative Industries Commission, which would combine the Kansas Film Commission and Kansas Arts Commission and be under the Kansas Department of Commerce. The $200,000 would then be allocated to arts-related businesses that can show they can create jobs. Funding for public arts

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able to attract matching federal arts dollars. But the National Endowment for the Arts said the veto made Kansas ineligible for $1.3 million in arts support. Kansas never submitted its application for a partnership grant with the NEA. Sarah Carkhuff Fizell, a spokeswoman for the Kansas Citizens for the Arts, said she was glad that Brownback made the new proposal but hoped it would change during negotiations with the Legislature.

“We’d like to see more support,” Fizell said. “Two hundred thousand dollars is not two million,” she said. Sen. Marci Francisco, DLawrence, said there were still many unanswered questions about the proposal. Francisco said she wanted to make sure the state would be in a position to be eligible for federal and regional grants. — Statehouse reporter Scott Rothschild can be reached at 785-423-0668.

COMING SATURDAY We’ll chat with a KU employee about his game show debut on “Jeopardy!”

Vol.154/No.13 36 pages

Energy smart: The JournalWorld makes the most of renewable resources. www.b-e-f.org


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