‘Destination’ restaurant is interested in site

Ann Smith-Tate of the Shawnee Chamber of Commerce, told councilmembers there is already a letter of intent from an interested restaurant for part of the building, which she promised would be a “destination, signature class A restaurant.”

“A redevelopment of this scope and quality is certainly what was imagined when Nieman Road broke ground all those years ago,” she said, referencing the months of reconstruction of one of Shawnee downtown’s main thoroughfares.

The 14,000-square-foot building is one of the largest single-owner occupied buildings downtown, Smith-Tate said, and has been the focus of much curiosity about what will happen to it.

Project could cost up to $5M

The building is currently owned by Nick and Sam Karra, who are also the developers. The Karra brothers have operated the liquor store for about 25 years but have only owned the building for the past five and a half years, Smith-Tate said.

The liquor store would remain, with a major remodel to its space.

The restaurant would be 6,500 square feet including an outdoor area, and another 2,000 square feet would be available for a future tenant, perhaps a coffee shop or ice cream shop, Smith-Tate said.

The total cost of the project, including the land on which it sits, would be $4.5 million to $5 million.

The project would also create 25-28 new public parking spaces, Smith-Tate said.

Developers ask for city’s help funding project

Because of the scope of the project and the fact that the existing building has no restaurant infrastructure, the developers have also asked the council to consider a $1.5 million funding request.

Developers did not ask for tax increment financing or a special community improvement sales tax district.

Instead, they propose the city use a combination of federal money it received from the American Rescue Plan Act and the Shawnee Entrepreneurial and Economic Development, or SEED, fund.

That SEED money comes from revenue from the landfill impact fee.

Industrial revenue bonds for a sales tax exemption on construction materials also will be requested.

Council approves measure to start process

The council’s 5-3 vote — with Councilmembers Tammy Thomas, Mike Kemmling and Jacklynn Walters voting against it — does not commit the city to any funding.

It does allow the city to begin spending about $20,000 to negotiate the terms of a deal. More specific plans for development and funding will have to come back for council consideration.

Councilmembers who voted for it said they liked that it would use federal funds and money from the landfill fee, rather than future sales or property tax revenue.

“I don’t think there’s very many opportunities to take a million dollars from ARPA funds which didn’t come out of our taxpayers’ pockets, and a half a million dollars which came out of our friends there at Waste Management and turn that into an economic engine in downtown that produce sales taxes and future property taxes,” Jenkins said.

Councilmember Kurt Knappen also supported the idea.

“This is the last major piece of property that really needs to be revamped,” he said, calling it “somewhat of an eyesore as a lot of buildings were several years ago.”

Some councilmembers question use of city funds

But councilmembers Walters and Kemmling said they struggled with how the funds would be allocated and whether SEED money should be used.

“I’m not a fan of the SEED grant money. I feel like we can spend it in other areas. Especially when we’re going for something that is 30% or 40% going to stay a liquor store, I’m not sure if that’s all the revitalization we’re looking for,” Kemmling said.

Thomas faulted the owners for not keeping the building in good shape and that made her balk at their subsequent request for help from the city.

“That building and that strip has been a mess for many, many, many years,” she said.

The ‘last piece’ of Nieman redevelopment

However Smith-Tate and Mayor Michelle Distler noted that the Karra brothers have only recently bought the building, and that the problem has been more about its age.

Councilmember Tony Gillette said the project has several wins in redeveloping a troubled area and creating parking spaces without a request for special taxing districts.

“Yes, it’s a lot of money but man, it’s the last piece of Nieman and downtown that really needs a kick in the rear to bring it up to make it a useful space,” Gillette said.

Roxie Hammill is a freelance journalist who reports frequently for the Post and other Kansas City area publications. You can reach her at roxieham@gmail.com.