Focus Area: Legal
Staff Contact: Ron Shaver
Subject: Public hearing and ordinance creating the 114-126 N. Cherry Street CID.
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Public hearing and consideration of Ordinance No. 25-07 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. (the 114-126 N. Cherry Street CID).
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Summary:
On February 13, 2025, the City received a Community Improvement District (CID) petition (Attachment A) from Cherry Santa Fe, LLC for creation of a CID over 114-126 S. Cherry Street. 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 dated December 11, 2024 (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 an approximately 10,859 square foot facility to be used for Class A restaurant and/or other retail and commercial uses generally located within and/or contiguous to any portion of the proposed District. The proposed project includes interior demolition and expansion of the current buildings on the property, a rooftop seating patio, landscaping, façade, and related improvements.
The project anticipates opening for business by July 1, 2026.
On March 4, 2025, the City Council adopted Resolution No. 25-1020 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 114-126 S. Cherry Street CID, authorizes the Project as described above, and authorizes the imposition of the CID sales tax within the CID beginning July 1, 2026 for up to 22 years.
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Financial Impact:
Total investment in the project is anticipated to be $7,009,686, of which $2,651,120 would be eligible for reimbursement from CID proceeds per the Development Agreement.
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Action Needed:
Approve Ordinance No. 25-07 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. (the 114-126 N. Cherry Street CID).
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Attachment(s):
A. CID Petition
B. Development Agreement
C. CID Ordinance