Lawrence city commissioners on Tuesday voted unanimously to proceed with issuing bonds for the KU Gateway Project as part of a tax break package that they approved last year.
The Gateway Project includes the renovation of the KU football stadium and construction of a conference center and a large mixed-use district next to the stadium, which will hold an outdoor plaza, hotel, student housing, parking and retail space.
The city commission approved up to $94.6 million in local tax incentives in August 2025. In October, commissioners approved an amendment to the development agreement that allowed the issuance of bonds before KU provides the final maximum price of the planned hotel.
Susie Carson, the city’s economic development director, said ahead of the meeting that KU anticipated having the final price details for the hotel in June 2027. She said KU has reported an agreement to put a Marriott hotel on the property, but final details were still being discussed.
The city, though, wants to proceed with issuing the bonds to not delay the development. Bond money for the hotel will be held in escrow until details are finalized.
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Jeff DeWitt, chief financial officer for KU, said in response to a question from Vice Mayor Mike Courtney that KU had discussions with the hotel developer earlier that day. He said they’re in the middle of conversations about design, and they will make sure there will be regular transportation service between the hotel and downtown.
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The Gateway Project is estimated to cost about $808.7 million, with about 75% funded with money from university donors, KU Athletics and private debt.
The majority of the city’s public funding for the project comes from STAR bonds, which stands for Sales Tax and Revenue bonds. These bonds direct new sales taxes generated across campus for up to 20 years toward the Gateway Project.
In addition, a community improvement district for the project means most of the campus is subject to an additional 2% sales tax for about two decades.
A tax increment financing plan will also direct increases in property tax revenue at the stadium toward the project.
20250812-KU-stadium-tax-breaks-districtsCommissioners said when they approved the public funding last year that the project could be a major economic driver for the city.
Mayor Brad Finkeldei said he’d supported the project in the past, and he’d support issuing the bonds now.
Commissioner Amber Sellers noted that she was the only commissioner who voted against both the STAR bonds and community improvement district in the August 2025 vote. She said that was because of the increased tax for students buying textbooks at the bookstore, supplies and other such expenses.
“This project that is supposed to benefit them and this community is done on their backs,” she said.
Courtney echoed her point and asked about carving the bookstore out of the CID. The commission had approved the districts back in May 2025.
Commissioner Kristine Polian said she was excited for the Gateway Project, she wants it to be successful, and “I’d love to see these bonds get paid off in half the time. Right? Doesn’t that sound perfect?”
Finkeldei, Courtney, Polian, Sellers and Commissioner Mike Dever all voted to approve issuing the bonds.
After the commission’s vote on Tuesday, the city will issue bonds for the community improvement district and STAR bonds. That means the city will borrow money from private investors and direct that money to the Gateway Project.
That debt will be repaid with revenue from the increased sales taxes, property taxes and new CID sales tax. Neither the city nor KU will be required to pay back the bonds if the tax incentives don’t generate enough new revenue.
— Reporter Cuyler Dunn contributed to this article.
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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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