Riverfront lawsuit could settle with City of Lawrence taking over building, hotel vacating

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The City of Lawrence would acquire the Riverfront building for $325,000 and SpringHill Suites would vacate the property under a settlement agreement that city commissioners will consider approving on Tuesday.

The settlement would release the city from liability in an ongoing lawsuit and end the current Riverfront owners’ long-term leases on the city-owned land where the building sits, according to a memo to city commissioners in their Tuesday meeting agenda.

The agreement “opens a myriad of possibilities for the future use of the land or Building” at 1 Riverfront Plaza, according to the memo.

“Removal of the Building, for example, may grant the community unparalleled access to the Kansas River for use by the residents of Lawrence for recreation purposes, for civic purposes, for a nature park, or the like; all of which would allow for revitalization and reimagining of the northern portion of our beautiful Downtown,” the memo continues. “The City looks forward to exploring those possibilities with the community.”

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Riverfront originally opened in 1990 as a 150,000-square-foot outlet mall. The building’s owners filed a lawsuit in February 2024 alleging that construction of an access road on the south bank of the river compromised the integrity of the land, causing cosmetic and structural damage to the buildings.

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The road was built as part of a project to repair a portion of the Bowersock Dam located just west of the Riverfront Plaza.

“[T]he work performed by the city’s chosen contractors, specifically the cutting into the embankment directly adjacent to plaintiffs’ building, has led to significant damage to not only the buildings’ foundation, but also significant damage to the interior of the building that continues to worsen to this day,” the lawsuit alleged.

Plaintiffs on the lawsuit include La Posada Group LLC, BC Lynd Hospitality LLC and Riverfront LLC. In addition to the City of Lawrence, defendants listed in the suit are TSP Environmental Inc.; R.D. Johnson Excavating Company LLC; Dondlinger & Sons Construction Company Inc.; and Recreation Engineering & Planning Inc.

The defendants denied the allegations, and the city asserted crossclaims against the other defendants. The case has continued in Douglas County District Court.

Last month, the city issued notices of default to La Posada and Riverfront “asserting material defaults for alleged failure to maintain the Demised Premises” as required by the lease and agreements for the use of the land, according to the settlement.

Under the settlement, all the other defendants would pay the plaintiffs $2.175 million within 30 days of the final party signing the agreement. The city would pay $325,000 within 30 days of the hotel vacating the building, which would be before April 5, 2027 when its lease is up.

The city would withdraw the notices of default and release the building owners from their obligation to address foundation undermining, slab-on-grade settlement, any damages that the owners alleged were caused by the defendants, and other maintenance requirements, according to the settlement.

The insurers of the contractors who installed and used the access road have paid the city’s legal fees in the case, according to the memo to the commission.

City staff members are recommending the $325,000 be paid with funds that the city has set aside for city hall renovations.

Meeting info

Lawrence city commissioners will meet at 5:45 p.m. Tuesday, May 12 at Lawrence City Hall, 6 E. Sixth St. 

The commission accepts written public comment emailed to [email protected] until noon the day of meetings. The commission also hears live public comment during meetings, both in person and virtually.

City commission meetings are no longer livestreamed on YouTube. In order to watch the meeting online remotely, attendees must join via Zoom at this link, which also allows participants to provide public comment virtually. Meeting recordings are uploaded to the city’s YouTube channel the next day.

See the commission’s complete meeting agenda at this link.

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Mackenzie Clark (she/her), reporter/founder of The Lawrence Times, can be reached at [email protected]. Read more of her work for the Times here. Check out her staff bio here.

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