photo by: Bremen Keasey

Lawrence City Commissioners voted to approve a financial incentive package Tuesday night that will help redevelop the historic Reuter building in downtown Lawrence.

Lawrence commissioners approved an incentive package that will allow for the development of the historic Reuter building in downtown Lawrence, saying they hope it can revitalize a long vacant building.

The commissioners voted 4-0 on numerous items Tuesday night that give developers incentives to redevelop the Reuter Organ building, 612 New Hampshire St., and its adjacent property at 614-616 New Hampshire St. in downtown Lawrence. Commissioner Bart Littlejohn was absent.

Commissioners approved an incentives package that provides developers with 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. The financial package would provide a maximum of $2.95 million.

As the Journal-World reported, a private developer in Lawrence applied in December 2024 for that incentives package, with the total project budget calling for a $17 million capital investment.

Patrick Watkins, an attorney representing the project, said he felt it was an exciting preservation project that will renovate two “cornerstones” of downtown Lawrence. The project aims to create 10 new residential units in the larger Reuter building, with seven two-bedroom units, two studio/one-bedroom units and one three-bedroom unit. Four commercial units would be developed as well, distributed among the first floor, second floor, rooftop and basement. The smaller building on the south side would be redeveloped to house three commercial units.

The presentation from Watkins included several renderings of what the building could look like if it was renovated, with a potential rooftop area that would include views of the Kansas River.

photo by: CT Design and Development

A rendering envisioning the potential redevelopment of the historic Reuter building at 612 New Hampshire St.

photo by: CT Design and Development

A rendering of the view from the Reuter building, 612 New Hampshire St. in Lawrence overlooking City Hall and the Kansas River.

Watkins noted the project already has gotten state and federal historic tax credits worth around $6.3 million, but it was a “complicated project” because of the current condition of the building. The historic limestone building first erected in 1882 nearly collapsed two years ago.

The developer, Matt Gilhousen, told the city he had been involved in a variety of historic preservation projects in the city, including developments in the Warehouse Arts District and in downtown Lawrence, like 1101 Massachusetts St., which currently houses Sylas and Maddy’s. He told commissioners this was the first time he has asked the city for assistance, and he “wouldn’t be asking if it wasn’t absolutely necessary” to move the project along.

That statement was backed up by an analysis by the city’s consultants, Baker Tilly, who found the project would likely not proceed without the requested incentives. Watkins said development of the long vacant building would continue to show the importance of improving downtown Lawrence.

“This building is ready for new life…but the city has to play a crucial role,” Watkins said.

A couple of groups wrote in support of the projects. Kelly Magee, the CEO and Founding Partner of Q39 Restaurants, noted her support, especially with her familiarity “related to downtown development and the adaptive reuse of old buildings.” Commissioners in May approved a similar incentive project to help the restaurant turn the former Journal-World printing plant building at 639 New Hampshire St. into a restaurant, as the Journal-World reported. The Lawrence Preservation Alliance also asked for the commissioners to approve the project, saying it combines preserving buildings that represent “cornerstones of the local historic inventory” and driving downtown activity.

Mayor Mike Dever asked the development group what the lifespan of the building would be if it was renovated. An architect involved with the project said it would expect a 100-year lifespan once construction is complete.

The commissioners all said they appreciated the commitment that Gilhousen has put into the project. Commissioner Lisa Larsen said it was important that the city preserve the historic buildings, and it’s in the city’s best interest to be a partner in that.

In other business, commissioners voted 4-0 to award a contract to a consulting firm to conduct a corridor study that would focus on North Lawrence.

The commissioners approved an engineering services agreement of just under $400,000 with the Kansas City-based engineering company HNTB Corporation for the North Lawrence Comprehensive Corridor Study.

As the Journal-World reported, the corridor study would explore not just potential economic development plans, but also improvements at the Union Pacific underpass and at-grade railroad crossings in North Lawrence, options to add more multimodal transportation and make North Second Street safer, and even future bridge alignments over the Kansas River. The city requested proposals for firms to conduct a corridor study earlier in the year.

As part of the proposed agreement, the city would also work to establish a nine-person task force to work with the firm on the study that would focus on areas of placemaking, infrastructure and transportation and economic revitalization. The task force would include specific appointees from various stakeholders — including members of the Aviation Advisory Board, the North Lawrence Improvement Association, Lawrence Chamber of Commerce and residents of North Lawrence — outlined by the agreement.

A handful of people spoke during public comment asking that the city consider expanding the task force to include the participation of residents from Grant Township. Those commenters noted that about 40% of the land that is identified in the study to be looked at is in Grant Township, and they wanted to ensure they had a voice.

Larsen asked the city staff if it was possible to have that inclusion or change the makeup of the task force as written. Jeff Crick, the city’s Planning and Development Services Director, said it could be added and amended as needed.

Dever said he was excited to have the city start the work to start revitalizing the corridor.

“We need to get this plan going,” Dever said.

If the agreement is approved, city staff say the task force should be appointed by Oct. 15, with the first meeting set for later that month. Cece Riley, a transportation planner with the city who will help lead the project, said the task force hopes it could present a final report to the City Commission in early 2027.