Opponents of the proposed Oread Inn voiced their concerns to the building’s developer in a sometimes contentious meeting Saturday at the Lawrence Public Library.

About 20 people attended the meeting, much of which consisted of discussion of tax increment financing and the value of an underground parking garage’s benefit to the community.

David Longhurst, a representative of the development company, tried to diffuse criticism of the hotel, which would be built at 12th and Indiana streets, by explaining the benefits of such a structure. He said that tax increment financing, or TIF, and the designation of the site as a transportation development district, would defer development costs from the public.

Initially, the development group – led by executives of the Gene Fritzel Construction Co. – sought to rely on bonds to make improvements to the neighborhood, ranging from sewer adjustments to improving pedestrian access.

But the $5.3 million needed for the neighborhood improvements, and the $6 million it would cost to build the underground garage, would now be funded by a TIF, which uses tax revenues generated by a project to help fund infrastructure costs.

The specter of public dollars funding private development did not sit well with the project’s opponents, but City Manager David Corliss attempted to calm their fears by explaining that the city would not be responsible for financing the Oread Inn.

“All of these improvements are going to be paid by the developer,” Corliss said. “Initially, the developer pays for the improvements. Then there’s the TIF; they request that over 20 years, they are reimbursed.”

He said that if the hotel is not profitable, the developer will not receive any reimbursement.

Longhurst listed other potential benefits for Lawrence. He said that over a period of 22 years, the city could expect a financial windfall from the inn, including an additional $45,000 annually in property tax that would go to the school district; a projected payroll of $40 million; public revenue of $8.5 million; and an estimated $21.3 million in visitor spending.

But that did little to sway opponents, who worry that other parts of Lawrence would suffer as attention is paid to building the infrastructure in the Oread neighborhood, and complained that a slowing economy should lead to curtailed spending.

Jacob Dorman, a professor of history and American studies at Kansas University, called the site “oceanfront property,” prime land that would benefit the neighborhood and the university if a hotel were built. But he worried that an already tight budget would be damaged by spending on the hotel.

“At a time when the city says we’re too poor to afford these basic services” such as bus service, which has been reduced, funding a hotel should not be a priority, he said.

Dorman added, “If we’re going to use monies that are used to fund this project, these are monies that belong to the community.”

Longhurst countered by again explaining that the TIF would postpone public obligation to pay for the hotel. He said the 92-room inn would generate $264,000 in sales tax during its first year of business, compared with the $37,000 yielded by the most recent occupants, The Crossing and Beat the Bookstore.

Additionally, Longhurst brought up the possibility of designating the Oread site as a transportation development district, which would yield an additional 1 percent of sales tax annually.

Opponents also complained the proposed design of the seven-story building would blight the neighborhood.

“What will this do to the campus skyline?” asked Dennis Domer, who sat on a panel with Longhurst and several others. He said the building must be a modern design that would complement the campus for years to come.