The roster of developers interested in converting the area around KU’s football stadium into a convention and entertainment hub is about as deep as the Jayhawks’ depth chart for quarterback.
In other words, just three firms submitted qualifications to become the lead developer of the KU Gateway project at 11th and Mississippi streets. So far, KU’s top leaders say that’s not a problem.
“They are all qualified,” Jeff DeWitt, chief financial officer for KU, said. “Now, we just need a proposal that works for us.”
KU expects to select one of the three firms to work with by March. That is a significant delay from a previous timeline, which called for a master developer to be selected by early December. The delay won’t impact KU’s timeline to begin renovations of David Booth Kansas Memorial Stadium near the end of this year. KU is serving as its own developer of the football stadium improvements. KU is seeking a private developer to do work on many of the nonfootball-related amenities that would surround the stadium.
I’m not clear on what has caused the delay in selecting a project developer, other than the project is plenty complicated. It is a large project on a small site with much of the property owned by the state. That’s not an equation for speed.
I’m also not clear on whether supporters of the project should be concerned that only three firms submitted letters of interest in the project. I’ve got to think KU leaders were expecting more than that. The project timeline that KU released earlier this year had a step in it that called for KU leaders to create a “shortlist” of project developers. In other words, KU was expecting to sort through the qualifications of multiple firms and then select a handful of those firms to serve as finalists in the process. What actually happened, though, is only three firms submitted qualifications, and all three were selected to move on in the process.
What that means in the grand scheme of the project is still to be determined. When I briefly interviewed DeWitt and KU Chancellor Douglas Girod, they both said they were still very enthusiastic about the Gateway project. But both were also careful to say little about what they think the project ultimately will include. If you remember, a consultant has told KU the project could feasibly include a 175-room hotel, more than 50,000 square feet of restaurants and retail space, 20,000 square feet of medical and office space, a 2,500-seat concert venue and about 175 units of student apartments.
It is one thing for a consultant to say all that is feasible. It is another for a developer that will be expected to put up some of its own money to agree.
“The jury is still out,” Girod said of whether developers will be able to accomplish everything KU has envisioned for the area. “They definitely can do it.”
The big question likely will be whether they can do it in a way that KU can afford. Information about how much the Gateway project may cost — in its entirety — has been scarce. KU is estimating it will cost more than $300 million to partially refurbish David Booth Kansas Memorial Stadium and to build a 55,000-square-foot conference center — with seating for 1,000 — in the north bowl of the stadium. That is what KU is calling Phase I of the project.
Phase II of the project would include those other elements I listed above, like the hotel, concert venue, restaurants and such. Phase II also is when KU would make improvements to the east side and south end of the football stadium. The Phase I project is focused on the west side and north end.
A conceptual rendering of how the area around the KU football stadium could develop at 11th and Mississippi streets is shown. Proposals for the site have included a conference center, hotel, retail, restaurants and student housing.
Developers are being asked to submit plans only for Phase II. The project partners for Phase I — Turner Construction and Kansas City-based engineers/architects HNTB/Multistudio already have been selected. Developers are expected to submit their proposals for Phase II by mid-November, DeWitt said.
Those proposals are where KU should get an idea of the finances of the project. While KU is serving as the developer of Phase I, on Phase II KU is looking for a private entity to take the lead and invest money into the project. KU likely would have to invest some money as well for certain aspects of the project.
The phrases “some” and “certain aspects” likely will be the subject of extensive discussions and negotiations. To build everything KU has envisioned for the Gateway project, it likely will cost more than $100 million, in addition to the $300 million that KU will be spending to renovate the stadium and create a conference center.
How much KU will have to contribute will be a major determinant of whether everything the university has envisioned for Phase II is feasible. DeWitt said he hasn’t seen anything from the developers that has him abandoning certain aspects of the project. But developers, thus far, have only submitted their qualifications, not their specific plans.
“Having done this many times, let me see your proposal,” DeWitt, who has overseen public-private partnerships in top jobs with the city of Phoenix and Washington, D.C., said of his current thinking.
KU has not provided an estimate for the Phase II costs, but you can make some reasonable guesses based on some similar projects around the country. One of the closest is in Ames, Iowa, where Iowa State is planning to build a retail, entertainment and office district parking lots and other property between their football stadium and basketball arena. Media reports in the Ames area say project costs currently are estimated at $200 million. The first phase reportedly will include four buildings: a three-story medical clinic; a two-story retail and office building; a two-story restaurant and retail building; and a three-story building that will house luxury one- and two-bedroom apartment units that will be marketed to Iowa State alumni who want to live near the heart of the campus.
KU isn’t yet proposing a similar apartment or condo development as part of its project, but Iowa State is betting big on that component. The 10-year leases of those luxury units are proposed to fund a good portion of the project.
It will be interesting to see if the prospective developers propose ideas they’re seeing from across the country but that weren’t included in the recommendations by the KU consultant. Hopefully we will know more in another month, when KU gets its first look at the proposals.
There is one other key date to keep in mind for the project. KU by the end of December or into early January is expected to select a stadium operator. KU has received proposals from two stadium operators — both national firms that operate many, many stadiums across the country, DeWitt said. The operator will take care of many game day activities and will be responsible for concession stands and other food and beverage operations. It also will play a major role in operating the conference center that will be located in the north bowl of the stadium.
DeWitt said it would be important to get that operator chosen soon so that the company can have some input on the final designs of the stadium renovation. As a reminder, work on the stadium will begin basically as soon as the home football season is over in late November. Work will continue through all of next season. KU will continue to play in David Booth Kansas Memorial Stadium while the work is underway, but the seating capacity of the stadium will be greatly reduced during construction.
When work will begin on the hotel and other Phase II projects is unclear. That is a key detail developers are expected to provide when they submit their plans next month. Those Phase II projects are expected to have great impact on parking at the stadium, especially on the east side of the facility.
KU fans have been wondering how KU plans to replace that large parking lot on the east side of the stadium once it becomes the site of new development. That also is a detail that is expected from potential developers.
“We are not going to forget parking,” DeWitt promised.
This rendering shows the most recent design for a renovated David Booth Kansas Memorial Stadium. The rendering also shows some possibilities for ancillary development on the east side of the stadium.
University of Kansas/HNTB
University of Kansas/HNTB
University of Kansas/HNTB