A dispute between Baldwin City officials and the owner of a downtown sports bar, The Bullpen, could force the business to close as the city moves to change lease terms for a building it owns. Owner Niki Manbeck said she may vacate the city-owned building by the end of April if the proposed lease terms move forward without changes.
Manbeck addressed the situation publicly in a Facebook post explaining the potential impact of the proposed changes and encouraging residents to voice their opinions.
The sports bar has been operating in the former police station since November 2021 after the city approached Manbeck about converting the property into a business. At the time, she said the agreement included reduced rent for the first two years of a five-year lease while she invested her own money into renovating the building. She operated under what is known as a “net one” lease structure, meaning she was responsible for certain maintenance costs.
Manbeck said she paid for improvements including electrical upgrades, ventilation systems, flooring and the installation of an ADA-compliant restroom. The work was done on a building the city still owns.
“We agreed that the first year I would pay $800 and the second year $900, then years three through five would be at market rate of $1,000,” Manbeck said.
While city officials say the review is a routine process and part of a broader effort to standardize lease agreements across city-owned properties, Manbeck says the proposed changes could threaten the sustainability of the business she has spent years building.
During the March 17 city council meeting, council member Corey Venable recused himself from the discussion, citing a conflict of interest because he owns another bar in Baldwin City, Baldwin City Beer Company. Manbeck also raised concerns about Dave Hill, a member of the city’s Budget and Finance Committee who owns the building where Venable’s bar operates. Manbeck said those relationships raised concerns for her about how the lease negotiations were handled. She also expressed concern about the timing of the proposal, saying she learned of the new terms shortly before the council meeting where the issue was discussed.
Instead, she said the proposal was presented with little time to plan financially.
“I thought we were in a negotiation phase,” Manbeck said. “They said, ‘This is business. Take it or leave it.”
The business began turning a profit in 2024, meaning revenue remaining after payroll, inventory and other expenses. Manbeck said the bar’s net profit for the entire year (2024) totaled $17,000. She said much of that money has already been reinvested into building improvements and maintenance, noting the bar temporarily closes each summer for deep cleaning and facility upgrades. Remaining funds had been set aside for a future kitchen renovation, which Manbeck said would allow the business to begin serving food and generate additional retail tax revenue for the city.
“That was always the plan,” she said. “To reinvest the profits back into their building.”
However, Manbeck said those plans are now uncertain due to the city’s proposed lease structure. Manbeck said the additional financial burden could leave her with two choices: raise prices or close the business altogether. She said higher prices could make it difficult to compete with bars and restaurants in nearby Lawrence, where customers already travel for nightlife.
City council members say the lease review is occurring because the current agreement is expiring. Baldwin City Mayor Gerry Cullumber said renegotiating leases like this is standard procedure.
“The initial lease was ending,” Cullumber said in a statement. “Lessors typically renew or renegotiate leases with tenants as standard practice.”
Cullumber said the building was originally tax-exempt because it was owned by the city. However, once the property was leased to a for-profit business, Douglas County reclassified it for tax purposes. As a result, Cullumber said the city has been responsible for paying those property taxes and is now seeking to pass that cost on to the tenant.
“The city had no influence over the county’s decision to alter the building’s status,” Cullumber said. “As a result of this reclassification, the city is required to allocate property taxes to the current lessee.”
Budget and Finance Committee Chair Scott Lauridsen said the proposed change is part of a broader effort to standardize all city leases. In many commercial leases, tenants pay for property taxes and other expenses in addition to rent.
Manbeck said she has proposed an alternative solution to city officials, where base rent would be reduced while she assumes responsibility for property taxes. Rent would then increase each year gradually by a set percentage. That structure, she said, would allow her to plan financially and maintain stability for the business.
The issue has drawn attention from residents and customers following a social media post by Manbeck describing the situation. Manbeck said community members have since contacted city officials and expressed support for the business. Some have also decided to attend the next city council meeting on April 7 to voice their opinions.
“I want people to show up,” Manbeck said. “I want them to see how many people this business matters to.”
What happens next? If the city and Manbeck cannot reach an agreement, she said she will likely vacate the building when the lease ends.
“If they don’t change the terms, I’m 99% sure I will pull out,” Manbeck said.
City officials say they hope to reach a resolution.
“This is still a fluid situation with ongoing conversation with the Bullpen owner,” Lauridsen said. “I support the city using its available downtown buildings to grow the commercial footprint. I would like to see the city reach an agreement with The Bullpen and our other tenants that works for all parties involved.”
The Baldwin City Council is expected to discuss the lease again at its meeting scheduled for 7 p.m. April 7 at the Baldwin City Recreation Commission building.
