Focus Area: Legal
Staff Contact: Ron Shaver
Subject: Resolution setting the date and time for a public hearing regarding creation of a CID at 139 S. Kansas Avenue (3rd Street Social project).
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title:
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Consideration of Resolution No. 24-1070 setting a date and time for a public hearing 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) on January 7, 2025.
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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 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.
The attached resolution (Attachment B) provides for the notice of a public hearing to consider creation of the CID on January 7, 2025. If approved, the CID sales tax would begin being levied once the project is complete.
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Financial Impact:
Total investment in the 3rd Street Social project is anticipated to be $6,071,163, of which $5,951,564 would be eligible for reimbursement from CID proceeds per the CID Petition.
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Action Needed:
Approve Resolution No. 24-1070 setting a date and time for a public hearing regarding the adoption of a TIF Redevelopment Project Plan pursuant to K.S.A. 12-1770 et seq.
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Attachment(s):
A: CID Petition
B: Development Agreement
C: CID Public Hearing Resolution