Focus Area: Legal
Staff Contact: Ron Shaver
Subject: Public hearing and Ordinance creating the 3rd Street Social Community Improvement District.
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Public hearing and consideration of Ordinance No. 25-02 regarding the creation of a community improvement district and the levy of a community improvement district sales tax pursuant to K.S.A. 12-6a26 et seq. (3rd Street Social Project).
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Summary:
On November 13, 2024, the City received a Community Improvement District (CID) petition (Attachment A) from 3rd Olathe Real Estate, LLC for creation of a CID over 139 S. Kansas Avenue (the northwest corner of W. Loula Street and S. Kansas Avenue). The Petition was submitted pursuant to the Kansas Community Improvement District Act (K.S.A. 12-6a26 et seq.), the City’s CID Policy, and the Development Agreement (Attachment B) negotiated for redevelopment of the property. The petition proposes the levy of a 2% CID sales tax for up to 22 years.
The general nature of the proposed project is described in the petition as follows:
to renovate, redevelop or improve (i) the existing 8,500 square foot structure to be used as a Class A restaurant establishment similar to Third Street Social located in Lee’s Summit and (ii) 3,000 square feet of other Class A restaurant or retail and/or other commercial use generally located within and/or contiguous to any portion of the proposed District. The proposed project includes interior demolition and expansion of the former office building on the property, an outdoor seating patio, landscaping, façade, and related improvements.
The project anticipates opening for business in late 2025.
On December 3, 2024, the City Council adopted Resolution No. 24-1070, directing that a public hearing on the proposed CID be held tonight, declaring its intent to impose the CID sales tax, and requiring the City Clerk to provide for notice of the public hearing as set forth in the CID Act.
The Ordinance (Attachment C) creates the 3rd Street Social CID, authorizes the Project as described above, and authorizes the imposition of the CID sales tax within the CID beginning October 1, 2025 for up to 22 years.
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Financial Impact:
The estimated cost of the 3rd Street Social project is $6,071,163, of which $5,951,564 would be eligible for reimbursement from the proceeds of the proposed CID sales tax.
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Action Needed:
Approve Ordinance No. 25-02 regarding the creation of a community improvement district and the levy of a community improvement district sales tax pursuant to K.S.A. 12-6a26 et seq. (3rd Street Social Project).
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Attachment(s):
A: 3rd Street Social CID Petition
B: 3rd Street Social Development Agreement
C: 3rd Street Social CID Ordinance