Lawrence to proceed with Rock Chalk Park audit, but first will make another $1 million payment

City commissioners agreed Tuesday to conduct an audit of the no-bid contract for infrastructure work at Rock Chalk Park, but before that audit is completed, the city will make another $1 million payment that largely will satisfy the city’s total due on the controversial project.

On a 5-0 vote, commissioners agreed to begin negotiations with Tennessee-based McDonald & Associates to conduct an audit of the nearly $12 million worth of roads, parking lots, sewer lines and other infrastructure work that has been built at the northwest Lawrence sports complex that was a partnership between the city, Kansas University Endowment Association and a private firm led by Lawrence businessman Thomas Fritzel.

But also at Tuesday’s meeting, commissioners agreed on a 4-1 vote to begin processing a $1.055 million payment that ultimately will reimburse Fritzel’s Bliss Sports II for loan, interest, engineering fees and other soft costs related to the project. The $1.055 million payment leaves the city with less than $50,000 to pay on the project, largely for legal fees Bliss is seeking reimbursement for. Mayor Mike Amyx was the lone commissioner to vote against making the payment.

Amyx said he still had questions about whether the city had enough information about how the loan Fritzel’s Bliss Sports II had with Emprise Bank had been administered. Specifically, Amyx said he wanted to be assured none of that loan had been used to pay for non-infrastructure related costs, such as the track and field, soccer and softball stadiums Bliss has constructed for use by KU.

“I don’t believe we ought to be paying this,” said Amyx, who has been an opponent of the project.

Other commissioners, though, said they had seen enough to be comfortable with making the payments.

“I’m of the opinion that it is a bill that we owe, and we pay it,” City Commissioner Bob Schumm said.

City Commissioner Jeremy Farmer previously had said he was not in favor of paying the bill until the audit was completed, but on Tuesday said he would do so on the condition that the city bring forward a new policy that requires contractors — especially engineers and architects — to submit more detailed invoices on work they do for the city. The new policy would have no bearing on the Rock Chalk Park project but may prevent other disputes in the future, Farmer said.

Technically, commissioners approved the processing of the $1.055 million payment for Rock Chalk on Tuesday. Commissioners are scheduled to provide final approval at their Jan. 13 meeting.

As for the auditor issue, commissioners chose McDonald & Associates after City Auditor Michael Eglinski recommended the firm. He said the company has experience in auditing construction projects and meets the requirement of having done no work for the city, KU or other parties involved for at least the past 10 years. The city expects the audit to cost $20,000 or less, plus out-of-pocket expenses for the firm.

In other news, commissioners:

• Approved the city’s legislative policy statement as proposed, including support for expansion of the state’s Medicaid program and statewide protections against discrimination for people based on their marital status or sexual orientation. Commissioners also added a statement urging the Legislature to refrain from making changes to the timing or non-partisan structure of City Commission elections.

• Overturned a decision of the city’s Historic Resources Commission that said a proposed sign for the new Marriott hotel at Ninth and New Hampshire streets was too large. Commissioners unanimously agreed the sign fit the scale of the building.

• Agreed to a parking and construction plan that will allow construction to begin on the new HERE apartment project near 11th and Indiana streets near the KU campus. Work is expected to begin in the next several days.