Fairway approves add-on sales tax for Stroud’s redevelopment — which includes plans for a Starbucks

The Fairway City Council approved a Community Improvement District — with a 1.5% add-on sales tax — and a redevelopment agreement for a multi-tenant building at the former Stroud's site, 4200 Shawnee Mission Parkway. Image courtesy of Klover Architects.

The Fairway City Council Monday evening approved the nearly $2 million Stroud’s redevelopment agreement and the city’s first-ever Community Improvement District.

A 1.5% add-on sales tax will apply to shoppers at the multi-tenant site, which intends to bring a Starbucks with a drive-thru, a retail space and a restaurant to 4200 Shawnee Mission Parkway.

Public hearing

Three residents weighed in during the public hearing portion of the meeting, related to the CID petition. Resident Julie Fern asked for clarification about traffic flow and how Starbucks might impact the intersection.

Mayor Melanie Hepperly said the planning commission and the city council discussed traffic several times, and while it’s not a concern at this point, the city has planned for any potential issues with the unanticipated public investments in the agreement. Two other residents asked about sustainability and how the development related to Fairway’s mission statement.

Agreement details

The details of the agreement are as follows, as decided by the city council during the meeting:

  • A $400,000 (or 30%) CID reimbursement cap for the developer.
  • A 67-33 split for the CID revenue if it is for reimbursement of an unanticipated public investment, 67% of which will go to the city and 33% of which will go to the developer. Without a public investment such as a traffic signal, the city will not receive any CID revenue except to cover direct legal and administrative costs.
  • Three years from the time the first tenant occupies its space for the city to identify any unanticipated public investment (such as a traffic signal at 55th Street and Shawnee Mission Parkway), that is necessary as a direct result of the development.
  • If the developer chooses to pursue LEED certification, all associated expenses would be reimbursable beyond the 30% cap.

Green certification a sticking point during discussions

The final bullet point was intended to serve as a compromise from the Dec. 2 finance and administration meeting. Developer MREM Fairway Property LLC doesn’t want to pursue LEED certification — which would potentially require going back through the planning commission approval process — due to cost and time restraints.

City staff adjusted the redevelopment agreement for the former Stroud’s site, above, to include a sustainability compromise. File photo.

Councilmember Jenna Brofsky said she wanted the governing body to push for sustainability, and potentially require the developer to achieve LEED certification.

Others like Councilmember Jason Rogers weren’t against sustainability, but said losing the redevelopment could cost Fairway tax revenue.

“We can implement [that] on maybe a larger project versus saying, ‘hey, you’ve submitted to our planning commission, you’ve followed our process’ and then we get to this point and we rewind the clock and try to start all over again,” Rogers said. “I think we should feel fortunate that we actually have a tenant that wants to go in there.

Councilmember Jenna Brofksy pushed for the multi-use site plans to include green elements. File photo.

Although the city council unanimously approved the CID, Councilmembers Tom Cotter and Brofsky voted against the redevelopment agreement.

“I appreciate everyone on the council taking sustainability seriously and working through this and trying to figure out what makes the most sense,” Brofsky said. “But I am truly disappointed in where we’re at at this moment.”