City of Lawrence, Oread Hotel slap each other with default notices

The Oread Hotel on the north end of the KU campus
The Oread Hotel on the north end of the KU campus

LAWRENCE – A dispute between Lawrence and developers of an upscale hotel located near the University of Kansas campus has escalated.

The Lawrence Journal-World reports that city and developers of The Oread hotel slapped each other with notices of default Thursday on their redevelopment agreement.

The city says the Oread Inn isn’t cooperating, and Oread Inn says the city is withholding tax reimbursements.

At stake is $8 million. That’s the amount Oread Inn could still generate in city reimbursements if the redevelopment agreement were to stand. Since its creation in 2008, the agreement has brought in $3 million for developers.

Issues arose when an audit found that sales tax data within a special taxing district was inflated, leading to tax rebate overpayments. The Oread Inn has repaid about $500,000.