photo by: Douglas County screenshot

A map shows the proposed TIF district on the University of Kansas' West Campus.

City leaders will soon consider an economic incentives package for a mixed-use development on the University of Kansas’ West Campus that will include research-related buildings, retail businesses, affordable and market-rate housing and a child care center.

As part of its meeting Tuesday, the Lawrence City Commission will consider approving a Tax Increment Financing (TIF) and a Community Improvement District (CID) sales tax of 1.5% for the project, known as The Crossing.

West District Improvement Company, which is owned by the Kansas University Endowment Association, is developing the project, which will serve as the gateway to the KU Innovation Park, according to a city staff memo. The multi-phased development will be on approximately 80 acres within the West District of the University of Kansas campus and will include an “intergenerational residential community,” research-oriented office space, an early child care center, and a mix of restaurants, activities, and neighborhood amenity retailers.

KU Endowment will be paying the upfront costs for infrastructure improvements related to the project, including sewer line upgrades, street construction and a traffic light at the intersection of 21st and Iowa streets, and is requesting the TIF and CID sales tax to help reimburse a portion of those costs.

The TIF district is anticipated to include two project areas, and the commission is considering incentives for the first area as part of Tuesday’s meeting. Infrastructure work for the first area began in late 2022, and at full build-out will support roughly 500,000 square feet of new development, including approximately 400 proposed multifamily residential units, affordable housing sites, a grocery store, a hotel, over 50,000 square feet of retail and dining uses, and over 75,000 square feet of office and research space. Infrastructure investments are estimated at $15 million for the first phase. The TIF is also being structured to cover financing costs that KU Endowment may incur.

Based on the assumed project costs and operating revenues, a financial analysis found the development would be unlikely to be undertaken without public subsidy due to “inadequate return.” On Dec. 16, the Public Incentives Review Committee voted 4-1, with one abstention, to recommend the incentives for approval. On Dec. 21, the Planning Commission voted 4-3 that the first area of the TIF was consistent with the Lawrence-Douglas County comprehensive plan, Plan 2040, for the development of the city.

Details about the requested incentives are as follows, according to the city memo and financial analysis:

•The developer is requesting a 20-year TIF to capture 95% of eligible property taxes for reimbursement, with the remaining 5% flowing to the taxing jurisdictions. The developer is not asking for a sales tax TIF and all regular sales taxes within the district will flow to the taxing jurisdictions as normal. The property has been property-tax exempt since 1942. The redevelopment converts exempt property into commercial property that will be subject to property taxes.

•The developer is requesting a 22-year, 1.5% CID sales tax be captured for reimbursement to the developer. This 1.5% will be an additional sales tax on top of the regular sales tax. Revenues from regular sales taxes within the district will flow to the taxing jurisdictions as normal. Note, this property currently does not generate sales taxes.

The Lawrence City Commission will convene at 5:45 p.m. Tuesday at City Hall, 6 E. Sixth St.