Goodwill thrift store is barred from opening new spot in Johnson County. It’s suing
Goodwill has filed a federal lawsuit against the city of Olathe, arguing that a law restricting thrift stores discriminates against businesses that serve low-income customers.
The legal battle comes after the city denied a license application for Goodwill to open a new location.
Since 2002, Goodwill operated a store on the north side of West 135th Street in Olathe. But with the lease up in 2019 and the building in need of repair, leaders decided to close it and relocate across the street, about 1,200 feet away, said Edward Lada, president and CEO of Goodwill of Western Missouri and Eastern Kansas.
Goodwill signed a 15-year lease to take over the vacant building, a former Aldi grocery store at 16175 W. 135th St., east of Mur-Len Road. But last fall, the city denied its application for the new location.
City officials cited an ordinance that restricts thrift stores from being within 200 feet of any residential property or within one mile of another thrift store. The city imposes similar restrictions for bail bond companies, pawnbrokers and pay day loan companies.
Thrift stores were added to the ordinance in 2016 — at which point the former Goodwill store was grandfathered in. In the city code, thrift stores are defined as a retailer that sells second-hand items, typically for charity. The law excludes antique shops and other consignment stores.
“We feel like this ordinance is a prime example of systemic classism,” Lada told The Star on Tuesday. “They specifically targeted nonprofit and charitable thrift stores, lumping in thrift stores with other adult-type businesses. Why else does the ordinance exist, other than they don’t want low-income people entering their city? There’s no other way to view it outside of them looking to control the classes in Olathe.”
“I don’t know if it was intentional. I hope it wasn’t intentional. But we can do better.”
City officials declined to comment. “Given there’s litigation involved, it wouldn’t be appropriate or responsible for us to comment at this time,” said Tim Danneberg, a spokesman for the city.
City documents state that in 2016, the intent of restricting thrift stores was “to reduce the proliferation of these businesses in close proximity to downtown Olathe and in other retail areas where these businesses may be highly concentrated and negatively impacting area commercial property values.”
In court documents, Goodwill argues, “The city has no evidence or reason to believe that two thrift stores within a mile of each other would have any negative impact on surrounding property values.”
Goodwill’s new location would be close to a Savers thrift store, as well as homes in the Briarwood subdivision.
Todd Lynch, president of the Briarwood Home Owners Association, representing 487 homes, said neighbors have met with the development team and overwhelmingly welcomed Goodwill. They say Goodwill has promised to avoid problems they argue plagued the neighborhood when Aldi was open, such as truck traffic and trash.
And a couple of years ago, Casey’s General Store was looking to open in the same location, which neighbors strongly opposed.
“The reality is that the property is zoned commercial, which has a huge range of commercial uses. We don’t have the luxury of choosing what business goes in there. And having a vacant building isn’t the best either,” Lynch said. “So I’d rather have a situation where we have a good relationship with the tenant, opposed to no relationship or a bad one.”
Lada argued that Goodwill has offered a benefit to the city for nearly two decades, most recently employing 46 people before the old location closed. He said Goodwill plans to invest $700,000 to renovate the new space.
Goodwill filed the lawsuit late last week. By doing so, Lada hopes city officials will drop the restrictions that he says put charitable thrift stores such as Goodwill, Salvation Army and others at a disadvantage.
“Our intent was to simply reopen a new store across the street. We just want to be treated like any other business. The last thing we wanted to do is file a lawsuit, as it drains precious time and resources away from our mission, but in order for systematic classism and discrimination to be eradicated, it must be brought out into the light,” he said in a statement. “If we don’t fight for the people we serve, who will?”
After the city denied Goodwill’s license application, the organization filed an appeal, which was also denied. Lada said that city officials have so far been unwilling to discuss the ordinance or comment on the lawsuit.
“It’s telling that the City Council and mayor are reluctant to have a hard conversation like this,” Lada said. “They wouldn’t engage with us — in 2021, when there’s so much job loss and so much need, when people with disabilities and other barriers to employment are having a hard time to find work.”
“The fact that we weren’t able to have an open and honest conversation about this is just disappointing. Let’s have the conversation. Let’s be OK with change.”
This story was originally published March 24, 2021 at 5:00 AM.
