Lawrence transit leaders say a plan for a new $4.5 million joint maintenance facility may be the most important step yet in making the city and Kansas University’s bus systems operate as one.
Now, city commissioners have to decide whether the deal also is a financial winner for the city.
At their meeting Tuesday, commissioners will consider approving an agreement with KU that would allow the university to begin work on a new bus maintenance facility in a northern Lawrence industrial area that houses Reuter Organ, Berry Plastics and others.
“The No. 1 thing this is about for us is coordination,” said Bob Nugent, the city’s public transit administrator. “It is very hard for us to coordinate the way we want to right now.”
Currently, KU and the city share a joint maintenance facility near 31st and Haskell, but the facility has just two maintenance bays for 75 buses. The new facility would have six bays and adequate office space that would allow KU and city transit operations to be side-by-side.
But the project will require the city to sign off on a sophisticated cost-sharing arrangement that has the city bringing more money to the project than KU, even though the university will be the ultimate owner of the building and will house twice as many buses at the facility.
Here are the details:
• The city will pay KU $1.39 million in lease payments over a 10-year period to help pay for construction of the building and purchase of the 13-acre site. The federal government reimburses the city for about half of those lease payments.
• KU will make $1.67 million worth of payments during the same time period.
• The city will use $2 million worth of federal stimulus dollars to help pay for the project. Technically, the stimulus dollars cannot go directly to the building project. Therefore, the stimulus dollars will be used to purchase six buses for KU. KU then will use $1.38 million it had set aside for bus purchases to go toward the cost of the construction. If the city does not contribute the $2 million, the city lease rate to KU will increase by $250,000 per year.
• In total, the city — through local dollars and federal money it receives — will put $3.39 million toward the project, while KU will pay $3.05 million. KU is expected to have about 50 buses at the facility. The city is expected to have about 25.
City staff members are urging commissioners to accept the deal. Transit leaders estimate the deal will result in the city saving about $400,000 in local funds over the course of 10 years compared with what they pay to lease space at 31st and Haskell.
Nugent said he’s comfortable using the $2 million in stimulus funds because the city no longer needs the funds to replace the city’s current fleet of 12 fixed-route buses. The city has a plan in place to use $3.11 million in federal grants and $187,000 in local funds to purchase the 12 buses over the next several years.
“The stimulus dollars really were unanticipated dollars,” Nugent said of the money that must be used for bus purchases. “I don’t really know what else we would do with that money at this point.”
Mayor Rob Chestnut said he’s looking favorably upon the deal, although he wants more details about how the specific site was selected by KU.
He said it is likely the city’s operating costs will end up dropping by more than transit leaders expect, if the city and university are able to better work together.
“I think it ultimately makes a lot of sense to have a combined facility in terms of logistics,” Chestnut said.
Commissioners meet at 6:35 p.m. Tuesday at City Hall.
Comments
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Bob_Keeshan (anonymous) says…
Judging from the way this story was written and the inflammatory headline, the LJ World is none to fond of this proposal.
hail2oldku (anonymous) says…
Funny, I thought the city commission met on Tuesday night. Did I miss something Chad or is this a study session?
d_prowess (anonymous) says…
At first, I thought this seemed like a crazy amount to spend given our current financial situation. However, buried toward the end of the story is the fact that the city will actually save about $400,000 over those ten years since they pay more for the space they lease now.
Why wouldn't they proceed then?
toe (anonymous) says…
What a horrendous waste of money.
amrose42683 (anonymous) says…
Hmmm ... $4.5 million eh? How about we give it to the school district so that schools don't have to close down instead of spending it on a transportation system that probably doesn't even accrue that much of a profit in a year. Granted there are people who use the transportation system here, but not enough to spend that kind of money on a currently unnecessary maintenance facility.
Geez, STUPID idea at this moment in time.
HW (anonymous) says…
Why would anybody, the city included, pay for ~53% of a project and not own at least 50% of the facility. The project could make sense in the long run other than the fact that KU will be collecting some awesome lease payments 10 years down the road when they own the facility out right..
blue73harley (anonymous) says…
Sounds like KU is taking the city for a real ride to me. Lew Perkins couldn't swing a sweeter deal than this!
cowboy (anonymous) says…
"Now, city commissioners have to decide whether the deal also is a financial winner for the city. "
Using that criteria the only option is to sell the entire bus system to some other city .
This whole system is a financial black hole. KU is using the city to create a world class system for the students , not for the city. This has been wrong since day one and gets "wronger" each time they touch it.
This group of commissioners and the city staff who put these deals together should all be fired . Remember commissioners there is an election looming for your do nothing rear ends and I would predict many of you shall be replaced.
matchbox81 (anonymous) says…
It seems like a win-win situation. KU owns the facility on paper so it can keep its athletic shuttle service that wouldn't be allowed if the feds help pay for the facility, city can use the facility by using the stimulus money to help KU buy buses (since city is using other funds to buy buses), both city and ku get to enjoy a nicer facility than what they currently have, for a cheaper price than what they currently pay. Plus, from what the story says, the company that operates the buses will be lowering what it charges both the city and KU since the company won't be paying rent on a facility.
Yes, students are city residents too. Yes, everyday city folk can ride the KU buses, yes, both systems help people of lawrence get around. Yes, the systems are working together, and yes each student pays something like $70 more a year for their bus service, on top of sales tax that's paying for the city service, And yes, the cost of the entire bus system is equivelent to just a couple of miles of laying down asphalt (how many miles of asphalt does Lawrence have, with each mile costing ~$1 million, not including annual maintenance....)
Bob_Keeshan (anonymous) says…
amrose42683 (Anonymous) says…
Hmmm … $4.5 million eh? How about we give it to the school district so that schools don't have to close down instead of spending it on a transportation system that probably doesn't even accrue that much of a profit in a year.
-----------------
This comment is exactly what the reporter and headline writer were after.
If you read the story, you will discover the city is spending perhaps $700,000 over ten years and expects to save at a minimum $400,000 over that same period.
So this "$4.5 million bus facility" is costing the City of Lawrence perhaps $30,000/year and probably less.
merrill (anonymous) says…
The current site is too small no question about it. Anyway this project was approved when 70% of a large voter turn out approved the T sales tax. So let's get on with it.
It's a good investment considering the T and KU bus service are without a doubt some of THE best paying jobs in Lawrence,Kansas complete with medical insurance and retirement plans.
Very smart thinking.
blue73harley (anonymous) says…
"Yes, everyday city folk can ride the KU buses,..."
Do they?
NO.
oneeye_wilbur (anonymous) says…
How about $45,000 and just repave some alleys so folks could get behind their properties and park their vehicle.
Is it the most logical location? NO, it is at the north end of the city. One can only imagine the mess of buses on N. Iowa along with the traffic from the Santa Fe Industrial park.
Again, another idea being implemented with an ill conceived plan.
Could the Journal World explain who owns the land, who will develop the facility and who financially benefits in the end?
compmd (anonymous) says…
Fix.
The.
Roads.
NOW.
EdenPrairie87 (anonymous) says…
I don't see why the city can't purchase the land the bus facility is already at and have KU build new buildings for offices and bus maintenance. There is room to grow there, it's located in a part of the city where people go and it would probably be cheaper.
We need to quit cow-towing to KU's every whim. We're stuck with the merged bus system but we need to start saying to KU "If you want it, you pay for it". What's the worst they can do? It's not like they can just pack up and move.
oneeye_wilbur (anonymous) says…
So why doesnt the J/W write a complete story about this.
Who owns the land the facility is to be built on?
How much is it selling for?
Who is buying it?
Who is developing the bus facility?
How much will they be paid to do so?
How much will the lease be?
How much property taxes would this faciltiy generate, if any?
There are some really vague things going on here, there really are.
beaujackson (anonymous) says…
Make it mandatory that all city employees & city commissioners ride the bus to work.
And (to) home in the evening.
oneeye_wilbur (anonymous) says…
With that facility so far to the north edge of the city, the commissioners would never get home nor would the city workers get to work on time.
It is a horrible location.
Build it underground or above ground with Park and Ride lot above or under. 23/Clinton Pkwy
hail2oldku (anonymous) says…
So how long did it take Chad to update his story so it reads properly? The original story posted referenced today and tonight for everything when I commented at 3:42.
cheeseburger (anonymous) says…
$4.5 million for 6 bays and some office space? I can't quite get that to pencil out!
leedavid (anonymous) says…
Are there enough bus riders to justify 4.5 million dollar terminal? They seem empty to me all the time.
Godot (anonymous) says…
How dare anyone question the validity of this expense? If you do, you are clearly unpatriotic! It is a "green project," and it supports higher education. These two objectives, alone, justifity any expenditure, however large. Besides, Obama will pay for it. He will get the money from his stash. That is the new normal.
leedavid (anonymous) says…
Sorry Godot...I wasn't thinking. I haven't gotten my Obama money yet.
oneeye_wilbur (anonymous) says…
The location is too far north. n. Iowa will be one big mucked up travel route along with the traffic from the Santa Fe Industrial Park. Who dreams up this stuff?
Again, who are the players in the construction, the ownership of the land, the leasing agreement and leaseback? Are they familiar names in town?
sunflour (anonymous) says…
Shame on you, Chad, for writing an article that is designed just to get the few people who are against transit completely up in arms. Did you bother to interview anyone at KU?
When I read the City Commission agenda (did you?), I saw that KU is building the facility, but that the city would be making its contribution through the purchase of buses...on top of the apparently under-market lease value considering the money saved.
And has anyone even LOOKED at the existing facility? The parking lot is an eyesore, not even paved, so it is no wonder they always look so dirty... Oh, I know! The DIRT is why you can't tell that people ARE riding the buses -- because you can't even see in the windows in the first place. It's also in the middle of a busy intersection full of passenger cars going to/from the neighborhoods and 31st & Iowa. Perhaps the location in an industrial park will actually make it easier around 31st & Haskell for all the car traffic and for the buses.
http://www.ci.lawrence.ks.us/web_base...
http://www.ci.lawrence.ks.us/web_base...
TheBigW (anonymous) says…
Maybe they should put out in the new farmland park or the run down empTy east hills park, that way the homeless could ride any bus returning to the barn to the new shelter, and I bet you could get a great price on those empTy lots and building in east hills or farmland. Sounds like a money saver to me.
50YearResident (anonymous) says…
All these buses traveling the same route that will access the entryway to the new proposed Hotel, Halmarks and the Industrial park. Whew, thats a lot of traffic for only one raod to carry.
beerguy (anonymous) says…
Do you know how many KU students the KU bus service takes off the road? Its in the upper thousands per day. You should be grateful traffic isn't as bad as it could be in this town, the city service on the other hand does seem like a waste of money.
cntrygrl (anonymous) says…
So...They're thinking of giving the KU maintenance guys 4 more bays to not fix or wash the buses in?
sunflour (anonymous) says…
cntrygrl, I think your sarcasm has just proven the point of having a new facility with enough space: it is impossible to fix and wash 70 vehicles (KU + city combined) in a facility designed for only 20.
merrill (anonymous) says…
Students pay for the use of those KU on Wheels and provide more bus use for Lawrence at the same time.
AND students shell out plenty in sales tax dollars that help fund the the T and road improvements.
Fix the roads some say. Stop expanding the city when there is not enough money to support expansion is the answer for that. Stop installing new water and sewer lines when local roads need attention.