Lawrence Journal-World 11-17-2016

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MASON, GRAHAM BRING ‘ASSASSIN MENTALITY’ TO KU TEAM. 1C PURGE OF ALT-RIGHT ACCOUNTS ON TWITTER RAISES FREE SPEECH ISSUES.

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Thursday • November 17 • 2016

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Ex-Kroger CEO will head chancellor search committee By Sara Shepherd sshepherd@ljworld.com

Emporia — David Dillon, retired chairman and CEO of The Kroger Co. and a University of Kansas alumnus, will head the search committee

for a new KU chancellor. The Kansas Board of Regents voted on Wednesday to appoint Dillon as chairman of the committee charged with finding a replacement for KU Chancellor Bernadette GrayLittle, who has announced she

will step down at the conclusion of this school year. The Board also formally announced that the search process would be closed, meaning names of applicants and finalists will not be publicly shared. Regents also

voted to hire the firm of R. William Funk and Associates as search consultant. Board chairwoman Zoe Newton said Wednesday’s actions kick off the KU chancellor search process. Newton said the search committee —

City: Oread group led ‘fraudulent scheme’

composed of representatives from various KU constituencies — will be assembled in coming weeks, and the Board will vote to approve its membership as soon as next month.

> SEARCH, 2A

JournalWorld File Photos

KANSAS UNIVERSITY UNIVERSITY OF KANSAS

AT A GLANCE Here’s a quick look at how the controversy around The Oread’s tax incentives has developed.

THE DISTRICTS The city has established two special taxing districts for the Oread hotel at 1200 Oread. First, a Tax Increment Financing District allows the city to rebate a large percentage of all new local property and sales taxes generated at the hotel back to the Oread’s development group. Second, under a Transportation Development District, the city rebates the proceeds from a special 1 percent sales tax charged at the hotel back to the developers.

By Rochelle Valverde lll

rvalverde@ljworld.com

T

he City of Lawrence is citing personal purchases and faked retail sales as grounds to terminate a multimillion-dollar incentive agreement with The Oread hotel. Instead of using tax incentives provided by the city as intended, If there a lawsuit alleges the developer of were imThe Oread hotel proper refraudulently collected tax rebates quests for for hundreds of reimburseunrelated purchases, including ments, the landscaping for city is enhis home, a cabin titled to rein Colorado and rental of a party cover those tent. back.” Attorneys for the city say such — Bradley Russell, purchases are just one category of attorney repreillegitimate trans- senting the city actions billed to a special tax district set up as part of the incentive agreement. “The obvious ones are the ones associated with private residences that are outside the (taxing) district: a cabin in Colorado, a carwash in Johnson County, Kansas,” said Bradley Russell, the attorney representing the city in the lawsuit. “Those are not the transactions that were envisioned in the agreement.”

THE DEAL The city and the Oread development group have agreed to an incentives deal that could mean — but does not guarantee — that the development group receives tax rebates totaling up to $11 million plus interest expenses. The actual amount is dependent on the amount of sales that occurs at the hotel building.

THE ALLEGATIONS The city alleges that certain members of the development group — Lawrence businessman Thomas Fritzel is at the center of the allegations — created a company called Oread Wholesale L.C., whose primary purpose is to make bogus retail sales transactions to boost the amount of sales taxes generated at the Oread property, and thus boost the amount of rebates the group receives.

> OREAD, 2A

— Chad Lawhorn

Regents committee advances proposed KU campus carry policy By Sara Shepherd sshepherd@ljworld.com

The University of Kansas’ proposed campus carry policy — written so KU can later designate specific “restricted access” areas where guns aren’t allowed — is closer to approval.

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VOL. 158 / NO. 322 / 20 PAGES

The Kansas Board of Regents governance committee on Wednesday discussed weapons policies proposed by KU and the five other state universities, and forwarded all to the full board with a recommendation for approval. The vote could take place as soon as

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the board’s December meeting. Under state law, public universities must allow the legal concealed carry of guns on their campuses beginning July 1, 2017. Once the full Board of Regents approves the proposed policies, each school can begin firming up details about how those poli-

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cies will be implemented and the community educated on their respective campuses. At KU, that is expected to include designating certain spaces as restricted access areas, where the university can prohibit guns. A section of the Kansas Per-

sonal and Family Protection Act allows universities to prohibit people from carrying guns into “restricted access” areas.

> POLICY, 2A l Universities propose

housing rate hikes. 3A

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