University of Kansas outlines $448 million "Gateway" development, seeks city and state financing tools

University of Kansas officials told the Douglas County Board of Commissioners on May 14 that the university's Gateway project is a $448,000,000 multi-phase development that pairs a renovated multiuse stadium and an 55,000-square-foot conference center with a hotel, student housing, retail and a programmed plaza.

The university's chief financial officer, Jeff DeWitt, described the plan and financing approach and said the stadium and conference center will be university-owned while private developers and donors will fund the hotel, apartments and other elements. "So here's here's what it will look like on August. It's it's it's a big deal. It's a $448,000,000 project with a 55,000 square foot conference center and a rent highly renovated Anderson Family Football Complex," DeWitt said.

DeWitt said phase 1 funding includes $248 million in donor/athletics debt and $85 million in state funds, and that the developer partner would pay for the hotel and the apartments in phase 2. He said the university is seeking economic development tools from the city and state 'STAR bonds, tax increment financing (TIF), and a community improvement district (CID)'to pay for public infrastructure such as an underground parking garage and stormwater work. "We're asking for STAR bonds from the Department of Commerce, which is incremental sales tax revenue in the area where the district is defined," he said.

DeWitt and Heather Blank, vice chancellor for strategic growth initiatives and real estate, said Oakview Group will operate the venue and Edgemoor Sunflower is the developer. Blank gave estimated tax and revenue impacts in a pro forma: a Hunden Associates economic analysis cited by university staff projects roughly $1.4 billion in net new direct spending and nearly $2 billion including indirect effects over 20 years, plus incremental sales taxes that the university estimates will help pay financing.

University officials said the development'which would build roughly 443 student beds, a 62-room hotel, 16 condominiums, and about 40,000 square feet of retail/office'is intended to make the conference center and stadium a year-round economic engine rather than an eight-game venue. DeWitt said the conference center is funded primarily by state economic development funds (including ARPA) and would attract 200 events a year in partnership with Oakview Group.

Commissioners pressed university staff on details the county will track if the project advances: public safety impacts (fire/medical response), the local share of sales-tax increment, property-tax treatment of site parcels, parking, transportation to downtown Lawrence, timing for phase 2 construction, and who bears administrative burdens from new finance districts. DeWitt and Blank said the hotel and developer-owned apartments would be put on the property tax rolls via long-term ground leases or similar arrangements, while the stadium and conference center would remain university property. "The developer would have a probably 99 year lease, for the hotel and the, and the apartments," DeWitt said.

On timing, the university said the stadium and conference center are scheduled to open this year for athletics and events, with phase 2 construction (east side tear-down and redevelopment) possibly starting at the end of this calendar year and taking about two years to complete under a best-case timeline. Blank estimated conference-center sales-tax receipts could start low in year one and rise to roughly $4'$5 million annually in years 10'12 of the projection.

County officials asked that the university continue early engagement with county emergency-management and Lawrence-Douglas County Fire Medical (LDCFM) about response needs and costs. DeWitt said he would discuss fire and medical planning with city and county leaders and noted the university will assign a dedicated vice chancellor and a general manager to coordinate operations and community relations.

The presentation was informational; the commission did not take a vote on the Gateway project during the May 14 meeting. University staff provided maps showing proposed STAR bond, CID and TIF district boundaries and noted public comment deadlines at the city level for objections or concerns.

DeWitt concluded by saying the university considers the project a major recruiting and economic tool and asked the county to continue coordination if the city and state financing steps proceed.