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 commissioners on Tuesday voted to approve a variety of financial incentives that would allow the $300 million second phase of the University of Kansas’ Gateway project to begin at 11th and Mississippi streets on the northern edge of campus.

The commissioners voted to approve five items that will provide KU a major package of financial incentives worth around $94.6 million for the second phase of the project, which would build a hotel that connects to the conference center, new parking, new student housing and space for businesses. Two key provisions to create special tax districts for KU needed supermajorities to approve; one of them, for a Tax Increment Financing district, passed 5-0, and the other, for a STAR Bond district, passed 4-1, with Commissioner Amber Sellers as the lone no vote.

Commissioners approved the creation of the boundaries for the tax districts in May, as the Journal-World reported.

Alongside the package of financial incentives, the city and KU drafted a development agreement that included a promise from KU to provide at least $4 million worth of land to be used for affordable housing projects. The city would also have rights to up to $14.5 million in new tax revenues created by the development to improve the Ninth Street corridor and stormwater systems near the football stadium, as the Journal-World reported.

The agreement includes provisions which would cap the maximum amount of bonds that may be contributed to the university’s project at $94.6 million, which is about 27% of the costs for this phase of the development; require KU to provide evidence it can complete “the entirety of the project” before any bonds would be issued; and ensure that KU commits to “establishing an off-campus housing office” to assist in relations between off-campus students and city residents. The commissioners voted to ensure KU would get that office running within 18 months instead of the initially agreed-upon 24 months.

City Manager Craig Owens said he was pleased to endorse and recommend the development agreement, noting the size of the Gateway project and that the various financial incentives were a modest percentage of the overall financing to the project.

Kevin Wempe, a consultant who worked with the city on a feasibility study of the project, said the city would potentially contribute about 12% of the overall costs for issuing the bonds — a “sliver” of the total cost. He also noted that KU and the state of Kansas have conducted feasibility studies on the project, and that he felt the issue had been “studied thoroughly.”

KU officials have touted the Gateway project and convention center as a major economic development driver for all of Lawrence, and particularly downtown. The plans for the second phase call for a 162-room hotel, 443 beds of student housing, 43,000 square feet of retail, restaurant and office space, and approximately 1,000 parking spaces that will be in a mix of underground parking garages and new surface parking lots.

Jeff DeWitt, the chief financial officer for KU, told commissioners he was confident this would be a successful project, and he said the university was working to be a “good neighbor” with the whole community.

“This is a project to be a major economic benefit for the community and to be a multi-purpose facility, not just a football facility,” DeWitt said. “We want to strengthen Lawrence’s standing as one of the best college towns in the country.”

A handful of residents spoke to the commission to voice their support for the project. One commenter said for years, he had heard frustrations about the town and gown relationship between Lawrence and KU, but that there was now a proposal that would bring state dollars via STAR Bonds in a place “right smack dab in the middle” of the community. He said it would “make no sense” for commissioners not to support the project.

The commission also heard leaders of several local organizations, including the Lawrence Chamber of Commerce, Downtown Lawrence Inc. and Explore Lawrence, express their support. Kim Anspach with Explore Lawrence said expanding around the conference center, which has been part of phase one of the Gateway project, will be a “powerful draw” for visitors. Bonnie Lowe, the CEO of the Chamber, said since it is the first STAR Bond project in Douglas County, it is a historic project that can create something “that will benefit (the community) for decades to come.”

Other commenters had some concerns about the project. Some who lived in the neighborhoods around the stadium were concerned about whether KU was doing enough to address the additional strain on parking and traffic. Others worried about noise from concerts at the stadium. The development agreement says the stadium can’t host more than eight major concerts a year. Katy Nitcher wrote to the commission, saying that she thought four major concerts would be a better cap at first, and that while there were some good things in the Gateway project, she didn’t agree with all of them.

Nitcher, who also spoke at the meeting, summed it up like this on Tuesday: “I’m not a fan of the whole enchilada; sometimes a taco is enough.”

Commissioner Bart Littlejohn asked DeWitt whether KU had point people that neighbors could speak with about their concerns. DeWitt said there have been 14 meetings between KU and the neighborhood, with another set for Thursday. He acknowledged the university will need to keep talking with everyone to ensure that the project isn’t putting too much stress on the neighborhood.

Sellers asked DeWitt how the project would help with Lawrence’s housing concerns. DeWitt said the 443 beds of student housing in the project would be apartment style, and he said the university was aiming to get approval to issue up to $100 million in debt for student housing — something the Journal-World had reported — with the hope to create 600 units of dorm-style housing.

Vice Mayor Brad Finkeldei said he wanted to support the project because it would maximize the benefits of the conference center, which in turn would “maximize visitors and maximize (the city’s) revenue.” Littlejohn said he thought the project could be a “game-changer” for the community.

Sellers said that although she likes STAR Bond projects, this project did not give her “warm feelings.” She said that the project would benefit a lot of people, but that it would also alter the institution of KU and change the types of students who are attending the university.

Commissioner Lisa Larsen said she felt it was a good project for Lawrence, and what got her interested in supporting it was when the city began to negotiate with KU about what the city could get out of it. A key provision for her was support for the Ninth Street corridor and watershed project. Larsen, alongside Sellers, did vote no on the Community Improvement District that would be on campus, saying she felt it created an unfair tax burden on students. However, this specific item did not require a supermajority, and it still passed on a 3-2 vote.

Mayor Mike Dever said it was important to grow the symbiotic relationship between KU and the city. Approving this project, he felt, was an important step in doing that.

“Without KU, Lawrence would be a lot different place, and a diminished KU would make it a lot different place,” Dever said.

In other business, commissioners voted to set a public hearing to potentially provide incentives to redevelop a historic downtown building into a mixed-use building.

On its consent agenda, which is considered under one vote, the commission approved setting a public hearing for Sept. 9 to consider a request by developers of the Reuter building, 612 New Hampshire St., for a Neighborhood Revitalization Act property tax rebate.

As the Journal-World reported, a private developer in Lawrence sent an application in December 2024 seeking an incentives package that would include a 95% tax rebate on the project’s new construction for the next 22 years, and the creation of a new sales tax district that would add a special 2% sales tax to any purchases made within the building for the next 22 years.