diff --git a/api/.cursor/rules/prds.mdc b/api/.cursor/rules/prds.mdc
index dc6c6e6e3..0c18a6b57 100644
--- a/api/.cursor/rules/prds.mdc
+++ b/api/.cursor/rules/prds.mdc
@@ -31,10 +31,6 @@ All PRDs should be stored in the `/prds` directory with the following structure:
   - `fix_` for bug fixes
   - `refactor_` for code refactoring
   - `api_` for API changes
-Examples:
-- `feature_user_authentication.md`
-- `enhancement_query_performance.md`
-- `api_deployment_alignment.md`
 
 ## Using the Template
 
@@ -112,8 +108,7 @@ The template [template.md](mdc:prds/template.md) provides comprehensive sections
 
 ## Example PRDs
 Reference these example PRDs for guidance:
-- @prds/completed/2024/api-deployment-alignment.md
-- @prds/completed/2024/feature-stored-values.md
+[template.md](mdc:prds/template.md)
 
 ## Checklist Before Submission
 - [ ] All template sections completed
diff --git a/api/Cargo.toml b/api/Cargo.toml
index ef8e51298..f95c49772 100644
--- a/api/Cargo.toml
+++ b/api/Cargo.toml
@@ -1,3 +1,21 @@
+[workspace]
+members = [
+    ".",
+    "libs/handlers"
+]
+
+# Define shared dependencies for all workspace members
+[workspace.dependencies]
+anyhow = "1.0.86"
+chrono = { version = "0.4.38", features = ["serde"] }
+serde = { version = "1.0.117", features = ["derive"] }
+serde_json = { version = "1.0.117", features = ["preserve_order"] }
+tokio = { version = "1.38.0", features = ["full"] }
+tracing = "0.1.40"
+uuid = { version = "1.8", features = ["serde", "v4"] }
+diesel = { version = "2", features = ["uuid", "chrono", "serde_json", "postgres"] }
+diesel-async = { version = "0.5.2", features = ["postgres", "bb8"] }
+
 [package]
 name = "bi_api"
 version = "0.0.1"
@@ -7,21 +25,27 @@ default-run = "bi_api"
 # See more keys and their definitions at https://doc.rust-lang.org/cargo/reference/manifest.html
 
 [dependencies]
-anyhow = "1.0.86"
+# Use workspace dependencies
+anyhow = { workspace = true }
+chrono = { workspace = true }
+serde = { workspace = true }
+serde_json = { workspace = true }
+tokio = { workspace = true }
+tracing = { workspace = true }
+uuid = { workspace = true }
+diesel = { workspace = true }
+diesel-async = { workspace = true }
+
+# Local dependencies
+handlers = { path = "libs/handlers" }
+
+# Other dependencies specific to the main app
 arrow = { version = "54.0.0", features = ["json"] }
 async-compression = { version = "0.4.11", features = ["tokio"] }
 axum = { version = "0.7.5", features = ["ws"] }
 base64 = "0.21"
 bb8-redis = "0.18.0"
-chrono = { version = "0.4.38", features = ["serde"] }
 cohere-rust = "0.6.0"
-diesel = { version = "2", features = [
-    "uuid",
-    "chrono",
-    "serde_json",
-    "postgres",
-] }
-diesel-async = { version = "0.5.2", features = ["postgres", "bb8"] }
 dotenv = "0.15.0"
 futures = "0.3.30"
 gcp-bigquery-client = "0.24.1"
@@ -40,8 +64,6 @@ regex = "1.10.6"
 reqwest = { version = "0.12.4", features = ["json", "stream"] }
 resend-rs = "0.10.0"
 sentry = { version = "0.35.0", features = ["tokio", "sentry-tracing"] }
-serde = { version = "1.0.117", features = ["derive"] }
-serde_json = { version = "1.0.117", features = ["preserve_order"] }
 serde_urlencoded = "0.7.1"
 snowflake-api = "0.11.0"
 sqlparser = { version = "0.53.0", features = ["visitor"] }
@@ -65,7 +87,6 @@ tiberius = { version = "0.12.2", default-features = false, features = [
     "sql-browser-tokio",
 ] }
 tiktoken-rs = "0.6.0"
-tokio = { version = "1.38.0", features = ["full"] }
 tokio-stream = "0.1.15"
 tokio-util = { version = "0.7.11", features = ["compat"] }
 tower-http = { version = "0.6.2", features = [
@@ -73,10 +94,8 @@ tower-http = { version = "0.6.2", features = [
     "trace",
     "compression-gzip",
 ] }
-tracing = "0.1.40"
 tracing-subscriber = { version = "0.3.18", features = ["env-filter"] }
 url = "2.5.1"
-uuid = { version = "1.8", features = ["serde", "v4"] }
 rustls = { version = "0.23", features = ["ring"] }
 rustls-native-certs = "0.8"
 tokio-postgres-rustls = "0.13"
diff --git a/api/libs/handlers/Cargo.toml b/api/libs/handlers/Cargo.toml
new file mode 100644
index 000000000..f5b52c7bd
--- /dev/null
+++ b/api/libs/handlers/Cargo.toml
@@ -0,0 +1,18 @@
+[package]
+name = "handlers"
+version = "0.1.0"
+edition = "2021"
+
+[dependencies]
+# Use workspace dependencies
+anyhow = { workspace = true }
+chrono = { workspace = true }
+serde = { workspace = true }
+serde_json = { workspace = true }
+tokio = { workspace = true }
+tracing = { workspace = true }
+uuid = { workspace = true }
+diesel = { workspace = true }
+diesel-async = { workspace = true }
+
+# Add any handler-specific dependencies here 
\ No newline at end of file
diff --git a/api/libs/handlers/src/lib.rs b/api/libs/handlers/src/lib.rs
new file mode 100644
index 000000000..e016f7d3e
--- /dev/null
+++ b/api/libs/handlers/src/lib.rs
@@ -0,0 +1,5 @@
+pub mod messages;
+pub mod threads;
+
+// Re-export commonly used types and functions
+pub use threads::types as thread_types;
diff --git a/api/libs/handlers/src/messages/mod.rs b/api/libs/handlers/src/messages/mod.rs
new file mode 100644
index 000000000..e69de29bb
diff --git a/api/libs/handlers/src/threads/mod.rs b/api/libs/handlers/src/threads/mod.rs
new file mode 100644
index 000000000..1460f6c4f
--- /dev/null
+++ b/api/libs/handlers/src/threads/mod.rs
@@ -0,0 +1,5 @@
+pub mod operations;
+pub mod types;
+
+// Re-export commonly used items
+pub use types::{ThreadRequest, ThreadResponse};
diff --git a/api/libs/handlers/src/threads/operations/create.rs b/api/libs/handlers/src/threads/operations/create.rs
new file mode 100644
index 000000000..e63d2f625
--- /dev/null
+++ b/api/libs/handlers/src/threads/operations/create.rs
@@ -0,0 +1,37 @@
+use anyhow::Result;
+use uuid::Uuid;
+
+use crate::threads::types::{ThreadRequest, ThreadResponse};
+
+/// Creates a new thread based on the provided request
+pub async fn create_thread(request: ThreadRequest) -> Result<ThreadResponse> {
+    // This is a placeholder implementation
+    // You'll need to implement the actual database operations
+    let now = chrono::Utc::now();
+    
+    Ok(ThreadResponse {
+        id: Uuid::new_v4(),
+        title: request.title,
+        organization_id: request.organization_id,
+        created_by: request.created_by,
+        created_at: now,
+        updated_at: now,
+    })
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    #[tokio::test]
+    async fn test_create_thread() {
+        let request = ThreadRequest {
+            title: "Test Thread".to_string(),
+            organization_id: Uuid::new_v4(),
+            created_by: Uuid::new_v4(),
+        };
+
+        let result = create_thread(request).await;
+        assert!(result.is_ok());
+    }
+} 
\ No newline at end of file
diff --git a/api/libs/handlers/src/threads/operations/mod.rs b/api/libs/handlers/src/threads/operations/mod.rs
new file mode 100644
index 000000000..e69de29bb
diff --git a/api/libs/handlers/src/threads/types.rs b/api/libs/handlers/src/threads/types.rs
new file mode 100644
index 000000000..274228e4e
--- /dev/null
+++ b/api/libs/handlers/src/threads/types.rs
@@ -0,0 +1,22 @@
+use serde::{Deserialize, Serialize};
+use uuid::Uuid;
+use chrono::{DateTime, Utc};
+
+#[derive(Debug, Serialize, Deserialize)]
+pub struct ThreadRequest {
+    pub title: String,
+    pub organization_id: Uuid,
+    pub created_by: Uuid,
+}
+
+#[derive(Debug, Serialize, Deserialize)]
+pub struct ThreadResponse {
+    pub id: Uuid,
+    pub title: String,
+    pub organization_id: Uuid,
+    pub created_by: Uuid,
+    pub created_at: DateTime<Utc>,
+    pub updated_at: DateTime<Utc>,
+}
+
+// Add more thread-related types as needed 
\ No newline at end of file