Controversial JoCo development moves forward, but opposition scales it back
Facing strong opposition from business owners and residents, a developer scaled back a major redevelopment project in downtown Olathe. But part of the plan is still moving forward.
Development company Milhaus is proposing apartment buildings downtown, which the city has called its first private development after 20 years of stagnant growth. But many residents and property owners argue the development will eliminate parking and lead to businesses closing.
The Olathe City Council on Tuesday approved a rezoning request and site plan for an apartment complex at the current library site, at 201 E. Park St. Developer John McGurk said the five-story, 228-unit apartment complex will be made up of two buildings.
McGurk previously proposed another apartment building at a city-owned parking lot, at the southwest corner of East Santa Fe and North Chestnut streets. But after receiving dozens of complaints from neighboring businesses, McGurk said he will withdraw those plans.
“We heard from neighbors loud and clear, so we came up with a good plan that preserves the lot for future use for the city,” McGurk said. “The city has been pushing a boulder up the hill for 15 years trying to get private development. Hopefully we’ll be the first private developer to push the boulder downhill.”
The existing downtown library will be demolished. Officials have promised a temporary location will be made available until a new library is built, east of City Hall on Santa Fe Street. Lane4 Property Group is planning a five-story building that will also include a restaurant and offices.
The developer is requesting a 10-year tax abatement for the $37 million project. The city is agreeing to sell the land for $10.
Olathe has been working for years to attract something other than government buildings to its downtown. Many council members said this is the first chance the city has had to start revitalizing the area.
“Change is hard. But change also brings some real opportunity,” City Councilman Jim Randall said. “If we don’t take this opportunity, we don’t believe we’ll see it again. Retail follows rooftops. If we’re ever going to have retail, we have to have people living downtown.”
Business owner Sheila Newbanks said the city is “putting the cart before the horse,” and should first attract retail before incentivizing housing. She is one of several residents who support growth downtown, but worry that a lack of parking could hurt businesses as well as the annual Old Settlers festival, which uses the downtown parking lots.
Many residents say the city-owned parking lot and parking garage are already almost always full, especially with traffic from the Johnson County Courthouse. They argue the city is not appropriately planning for an influx of new residents.
The apartment building would include 51 on-site parking spots, plus 46 spots on the street. According to the lease agreement, apartment tenants would also have access to around 250 spaces in the parking garage.
“What I hear predominately from people downtown is parking is currently untenable,” said Councilwoman Karin Brownlee, who was the only one to vote against the project. “So to add all of this demand is just going to be quite a hardship on those currently doing business there. So that’s something I think we really have to address.”
Some thought the city shouldn’t sell the land for so little.
“It’s not a blighted area. It’s valuable property and we’re giving it away,” resident Mark Rinke said.
Officials emphasized that no property taxes are currently collected on the site, but documents show the project would eventually generate around $150,000 in new tax revenue to the city.
Some residents said they are pleased the developer will withdraw plans to build the second apartment complex at the city-owned parking lot, but worry council members still aren’t doing enough to address concerns.
“I’m going to make a pledge that we will keep working on parking. We’ll just keep working on it,” Councilman Larry Campbell said.
The City Council will still need to vote on a final development agreement.
