photo by: MultiStudio

A ground level view of the proposed Gateway project at David Booth Kansas Memorial Stadium is shown in this rendering.

Lawrence city leaders have received the University of Kansas’ application for financial incentives for the second phase of its Gateway development, starting the process on what KU representatives are calling a “once in a generation project.”

The incentives themselves are still a ways away from being approved, but the Lawrence City Commission voted 4-1 to accept the university’s application. KU is seeking $86.7 million worth of breaks — $60 million worth of state STAR bonds and two special tax areas that would generate a combined $26.7 million. Commissioner Amber Sellers was the lone no vote.

As the Journal-World has reported, the $300 million Gateway Project would add an upscale hotel, a mix of retail and restaurant space, more than 400 new student apartments and a 20,000-square-foot plaza in the area around 11th and Mississippi streets. It would be in addition to the $448 million that KU currently is spending to rebuild the west side and north end of David Booth Kansas Memorial Stadium. That project, expected to be complete in August, includes a convention and conference center in the north bowl of the stadium.

Jeff DeWitt, the chief finance officer for KU, said he was “excited and confident” about the Gateway plan. He said that completing the project would help KU remain competitive for recruiting students in a few years, when higher education faces a “demographic cliff” of fewer college-age students.

DeWitt told the commission that an analysis by the university projected the plan would generate new net revenue of $1.4 billion in direct spending and $550 million in indirect and induced spending over 20 years.

“(The project’s) size and impact we’ve never seen here before,” DeWitt said.

Commissioners had a range of questions about the incentives and other aspects of the project, including whether there was a plan to connect the new development with downtown Lawrence; how stormwater capacity could be affected; how the university would work with neighborhood groups; and how the parking situation would be handled in the new garage. DeWitt said that the university wanted the project to be a partnership, and that it would welcome a dialogue with “anybody and everybody.”

Although Commissioner Lisa Larsen would vote in favor of receiving the application, she said several parts of the presentation seemed like “red flags.” She had asked the presenters about how the city’s tax on hotel stays would be affected by the incentives, among other specifics.

But City Manager Craig Owens emphasized that all that the commission was voting on on Tuesday was whether to open up negotiations, not whether to grant the incentives.

“This is a starting point in the discussion and gives resources for the future,” Owens said.

Other consultants for KU and for the city reiterated that there would be plenty of time for negotiations, with one calling the agreement a “day zero” for the plan. There will be at least five other public hearings regarding the proposal moving forward.

In other business, commissioners:

• Selected city parking lot No. 14 in the 700 block of Vermont Street for the city’s downtown transit station.

The commission voted 4-1 in favor of the site near the current bus transfer area. They chose it over city parking lot No. 9, which is on the west side of the 900 block of Vermont Street. Sellers was the lone no vote.

Felice Lavergne, the city’s interim Director of Transit, said city staff recommended lot No. 14 over the other option because of the amenities nearby. That location is closer to the Lawrence Public Library, post office and Senior Resource Center, which was the “main driver” for the staff recommendation.

The project, which has a budget of around $2 million, will feature restrooms, a building for security and canopies and benches to provide more comfort for people waiting for the bus, all things the current transfer location lacks. Construction of the station is expected to start in 2026.

• Approved a new $63,500 agreement with design firm Multistudio to reassess the City Hall reconfiguration project and evaluate as many as two alternative sites for a possible new location.

As the Journal-World has reported, the city had been working with Multistudio earlier this year on options to reconfigure City Hall because of concerns about space in the current building at 6 E. Sixth St.

Under the new agreement, Multistudio would conduct additional community engagement workshops and meetings about the vision for the project; update the site selection criteria; make additional presentations to the City Commission; and undertake a feasibility study and building assessment for up to two additional buildings.

The new agreement comes after city commissioners rejected Multistudio’s previous recommendation to move City Hall to a new site at 2000 Bluffs Drive. That building had 50,000 square feet of space compared to 35,000 square feet at the current City Hall, and a plan to purchase and redevelop it was presented to the commission in September. However, in October, the commission voted 3-2 against a $4.2 million agreement to purchase that building after multiple local organizations sent emails to the City Commission urging commissioners to keep City Hall at the current downtown location, including Downtown Lawrence Inc., the Lawrence Association of Neighborhoods and the East Lawrence Neighborhood Association.

• Signed a Memorandum of Understanding with Douglas County for transferring funds to purchase property for a shelter for families.

As the Journal-World reported, the County Commission approved a one-time funding request of $750,000 from the city of Lawrence for the shelter project, which will provide up to 65 low-barrier emergency shelter spaces for women and families by 2027.

The project will likely require additional funding from the CIP for property construction or rehabilitation in addition to the county funds, according to a city memo. If all goes well, the project could be completed within 12 to 24 months, according to a city memo.

• Authorized a $995,000 contract with Schneider Electric Buildings Americas Inc. for electrical infrastructure improvements that will support two hybrid fire trucks.

As the Journal-World reported, the city approved a request to forgo its normal bidding process and negotiate directly with the company to construct charging stations for the new trucks because the traditional process would have taken too long. The project will install necessary utility transformers, distribution panels, services, conduits and associated electric vehicle charging equipment.