Commission approves KU Gateway development agreement, clears first-reading votes for STAR and TIF plans; CID ordinance advances 3-2

The Lawrence City Commission on Aug. 12 voted to authorize the city manager to execute a development agreement with the University of Kansas for the KU Gateway project — a multi-phase plan that includes stadium renovations, a conference center, a hotel, student housing and related infrastructure — and took the first-step votes on three financing tools that would help fund the development.

The measures matter because they allow KU and private developers to access special financing tools — STAR bonds, a community improvement district (CID) sales tax and tax increment financing (TIF) — that together, under the terms presented, would cover a capped portion of an approximately $800 million project while the university and private partners supply the larger share of capital and construction. City staff and the university described the package as a partnership that links state STAR bond support, a CID levy and TIF proceeds to public infrastructure and a conference center intended to draw out‑of‑town visitors.

City bond counsel Kevin Wimpey of Gilmore & Bell presented the financing overview for the commission, describing a project budget “close to $800,000,000” and saying the city’s maximum exposure under the development agreement is roughly $94.6 million (about 12% of the total). He said the agreement includes a working threshold figure of about $86,000,000; if bond proceeds used by the university exceed that threshold, proceeds over the threshold would be split 50–50 with the city and could be applied to additional infrastructure. Wimpey and city staff said STAR bond repayment would be primarily supported by state sales tax revenues, with the city contributing an estimated portion of captured local sales tax. He also described a CID that would levy an additional 2% local sales tax within the district for up to 22 years and TIF proceeds that the commission has agreed may be pledged as general obligation bonds to raise additional proceeds for stormwater and street projects.

KU and its development partners presented the project’s components and…