Johnson County city talks incentives for new grocery store, apartments near IKEA
After the Hen House Market closed in 2018 following its two decades in Merriam, residents have said they wanted to see a replacement come forward, no matter what it takes.
Nearly seven years later, they could see its replacement come to fruition if the Merriam City Council approves a new project plan, tax incentives and rezoning for a sprawling redevelopment during a special meeting on Monday.
Slater Investors LLC, represented by Overland Park-based commercial real estate group Drake Development, proposed Grand Station Marketplace — a $102 million mixed-use development project on IKEA Way, W. 62nd Terrace and Shawnee Mission Parkway.
The city has worked with Drake for over a year to buy several properties in order to develop the northwest corner of Shawnee Mission Parkway and Antioch Road.
The area currently holds the former Johnson County Library Antioch branch, which closed last year, library maintenance buildings, parking lots, two office buildings, a Chipotle and a Shell gas station.
Once complete, Grand Station Marketplace is set to have more than 200 apartment units, over 12,000 square feet of retail space and a 12,500 square foot grocery store. No tenants have been announced as of Friday.
The Planning Commission approved the project plan in April. The City Council will now consider establishing a community improvement district, tax increment financing, industrial revenue bonds and a property tax abatement to help fund the project’s construction during Monday’s special meeting.
Redevelopment agreement requirements
The financial deal will have the city and Drake sharing ownership of the site and the costs of the site’s construction.
Drake will own the block west of Slater that will contain the 215-unit apartment complex, the corresponding parking structure and Chipotle. Merriam will own the east block that will include the restaurant, retail, and the grocery store.
As part of the agreement, Drake will develop both the city-owned and developer-owned blocks. The city would fund most of the construction, but Drake will be required to contribute $1 million to the grocery construction and $500,000 to the restaurant and retail construction.
Merriam will provide relocation funds to help businesses, including Poss-abilities Children’s Therapy Group, to a new spot within Merriam city limits.
Along with making improvements to public utilities, the agreement requires Drake to have at least 18 affordable units at the apartment complex — with rents not exceeding $1,609 per month — for the first five years of operation.
The project must be completed by June 24, 2030.
Tax incentives and requirements
The project will be funded by an existing Tax Increment Financing District, a proposed 1% Community Improvement District sales tax, and Industrial Revenue Bonds for both sales tax and property tax.
In the agreement, the city pledges to contribute up to $13.7 million in TIF reimbursement for expenses related to the parking structure, a one-time $4.8 million economic development grant to purchase the Shell gas station, and will provide a 10-year property tax abatement that could save the developer about $5.5 million in construction costs.
The city will issue at least $32 million in bonds to cover its portion of the costs and will get paid back through revenues generated by the expansion — particularly through the grocery store and restaurant rents.
The 1% Community Improvement District sales tax (fifty cents on a $50 receipt) is projected to generate about $6.3 million over its 22-year lifespan and is projected to pay off a portion of the city’s bonds used for the grocery store and restaurants’ construction.
The grocery store will not be included within the Community Improvement District to avoid a cost increase on groceries for residents.
If the developer fails to complete the city-owned East Block, doesn’t offer affordable apartment units during the allotted time or doesn’t complete the project by its June 24, 2030, deadline, the city can suspend or reduce its incentive payments.
Merriam’s Special City Council meeting will start at 7 p.m. at City Hall — 9001 W. 62nd Street.
This story was originally published June 15, 2025 at 6:00 AM.
