Lawrence commission approves creation of TIF, Star Bond districts for KU Gateway project amid neighborhood concerns

The Lawrence City Commission on May 6 adopted initial ordinances to form a tax incremental financing district and a STAR bond project district for the University of Kansas Gateway development, approving the TIF on first reading 5–0 and the STAR bond district on first reading 4–1.

The measures set geographic boundaries and “base” tax figures that will be used if KU and its partners later seek financing for phase 2 of the Gateway project. The TIF ordinance passed unanimously; the STAR bond ordinance passed 4–1, with Commissioner Larson recorded as opposed.

The Gateway plan put before the commission includes a multiuse stadium expansion, a 62‑room hotel, about 443 student housing beds, retail and office space, an underground parking structure and a 20,000‑square‑foot community plaza. Jeff DeWitt, chief financial officer for the University of Kansas, described the development as a mixed public‑ and private‑funded project intended to allow KU to host conferences, concerts and campus events locally. “Phase 2 addresses housing, addresses parking, it addresses a whole lot of other issues,” DeWitt said during the presentation.

City bond counsel Kevin Wimpey of Gilmore & Bell and city staff framed the vote as a procedural first step that enables later project plans and financing to move forward. “None of your votes tonight commit the city to any financing,” Wimpey told commissioners. Establishing the districts sets boundaries and the base year values; any bond issuance or financing would require further public hearings and agreements.

Speakers at the public hearing were sharply split. Supporters from the business community and downtown organizations argued the conference center and hotel would bring weekday visitors and additional foot traffic to downtown. “Without an anchor hotel, the conference center may struggle,” Andrew Holt, executive director of Downtown Lawrence Inc., told the commission. Local business owners said the project could lift retail and restaurants across town.

But many nearby residents and neighborhood representatives raised repeated concerns about stormwater and traffic impacts, parking adequacy and the durability of KU’s commitments on affordable housing and neighborhood protections. Pat Pirie, a neighborhood representative on the project advisory committee, said the project’s memorandum of understanding lacked enforceable protections for the neighborhood and that parking estimates would not solve existing shortfalls. “You add it all up. It doesn’t do one thing to alleviate the parking concerns that already exist in the Central District and the North District,” she said, noting a city study that showed current shortfalls.

Stormwater and flood control were highlighted repeatedly. Daniel Lowing, a neighborhood witness, described historic flooding along the corridor and warned that the proposed culverts and the estimated $14.5 million for watershed work embedded in project plans might not handle peak flows. Kevin Wimpey said the stormwater work had been added as the teams negotiated and that funding approaches were part of ongoing discussions with KU and the developer.

Commissioners and staff also discussed how STAR bond bases are set. Under state law, the STAR bond base is the prior 12 months of sales tax collections within the district; Kevin Wimpey explained the Department of Revenue computes that base at formation and that future sales tax increments above the base may be captured to repay STAR bond financing. Commissioners asked whether a grocery store that shifts into the district (Dillon’s was discussed during the hearing) could be excluded from the base; city counsel and bond advisers said there are statutory mechanisms and agency adjustments the state can apply and that the city was pursuing clarity with state officials.

Several commissioners said they supported forming the districts to allow negotiations to continue but emphasized the need for stronger, binding commitments in later agreements — particularly on affordable housing, parking mitigation, transit and enforceable neighborhood protections. Commissioner Fingoldye moved both ordinances; the TIF ordinance was seconded and passed 5–0. The STAR bond district ordinance passed on first reading 4–1 with Commissioner Larson opposed.

Next steps identified by staff include preparation of the TIF and STAR bond project plans, development of a binding development agreement and repeated public hearings before any financing is issued. Bond counsel and staff said bond sales and any final financing would not proceed until donors, the developer and state approvals were in place.

Why it matters: The Gateway project aims to pair KU’s stadium expansion with adjacent commercial development and state economic development tools. If the project advances to financing, captured increments of property and sales tax would repay project bonds for up to 20 years; supporters argue the project will expand conference business, downtown visits and housing supply, while neighbors urged binding measures to protect neighborhoods and ensure the city’s leverage is preserved.

Commissioners said they expect continued negotiations and more specific, enforceable language to return to the commission in coming months before any final financing or construction approvals are issued.