We report the 4.682-Mbp high-quality draft assembly of the Escherichia coli strain ATCC 23502 (serovar O5:K4:H4, also known as NCDC U1-41) genome. This uropathogenic strain, commonly referred to as E. coli K4, produces a glycosaminoglycan-like capsular polysaccharide with a backbone similar in structure to unsulfated chondroitin, a precursor to the nutraceutically and potentially pharmaceutically valuable compound chondroitin sulfate. Metabolic reconstruction of this genome will enable prediction of genetic engineering strategies leading to increased chondroitin production.