Olathe City Council authorizes CID for Santa Fe Shopping Center
With the help of public financing, the Santa Fe Square Shopping Center at the southeast corner of Santa Fe and Mur-Len roads will get a $15.1 million facelift with parking lot improvements, landscaping and exterior building enhancements.
The Olathe City Council on Tuesday authorized the creation of a Santa Fe Shopping Center Community Improvement District (CID) to help pay for some of the redevelopment costs for the improvement project. The vote was 6-1. Councilman Jim Randall voted against the CID.
Lane4 Property Group purchased the shopping center last year and requested the CID, which would impose an additional 1 percent sales tax on retail within the project. The base Olathe sales tax is 9.225 percent. Kansas allows CIDs to collect up to 2 cents in additional sales tax.
The sales tax levied within the Santa Fe Shopping Center CID may extend up to 20 years or until the maximum reimbursable amount of $2.7 million has been paid.
Based out of Kansas City, Lane4 has a history of buying and revitalizing dying shopping centers in the area. The firm stands to recoup between 17 to 24 percent of their total project cost for redeveloping the Santa Fe Shopping Center through the use of the CID. The city also expects a return on the investment in the area through increased property taxes and the attraction of new businesses to the area.
Two tenants spoke before the council about their support of Lane4 and the CID.
David White owns Fastsigns, a custom sign business located on Mur-Len Road within the shopping center.
“In the last 14 years, we’ve experienced some deterioration of the infrastructure at the shopping center,” White said. “Occupancy has gone down. The facilities are deteriorating. The asphalt is gone. The concrete is gone. It definitely needs some improvements to rebuild that area and attract new businesses into the shopping center.”
Veterinarian and Leslie Wegele echoed these sentiments. He owns the Santa Fe Pet Clinic on Mur-Len Road and said the area had declined because of disinterested landlords and marginally kept property.
“We’re excited about our new landlords and their commitment to make this a thriving shopping center again. Their proposed improvements of our center are impressive,” he said.
The improvements fall into two phases with the goal to complete everything as soon as possible. Phase I would cost $10.7 million and includes parking lot improvements, parking lot lighting and landscaping, and hardscape replacement with new islands and wheelchair-accessible ramps. This construction is expected to be completed by the end of the year.
Phase II of the project includes exterior renovations, wall elements, exterior painting and caulking. This work is dependent on future tenant requirements and could begin within the next five years. Phase II is budgeted at $650,000.
Approximately $3.8 million in capital improvements not eligible for CID reimbursements are also included in the total project costs. These includes tenant improvements, roof replacement, HVAC replacement and other capital improvements.
The council had previously requested that the redevelopment incorporate the trail system to increase pedestrian traffic at different access points on the property. A trail runs behind the shopping center.
The city park and recreation department determined the elevation change and location of the trail at the back of the property made providing an access point there unlikely. Instead, pedestrian traffic will be encouraged from the north side of the property on Santa Fe using existing sidewalks, the addition of a crosswalk, and signage.
This story was originally published May 19, 2016 at 8:04 PM with the headline "Olathe City Council authorizes CID for Santa Fe Shopping Center."