Despite a mixed reaction from city leaders, the Shawnee City Council approved two forgivable loans for new businesses coming to the area.
The city council on Monday approved two separate $55,000 loan requests to help with construction costs: one to DBF LLC for Franklin’s General Store at 11405 Johnson Drive, and the other to Katfish LLC for Gilda’s, a tapas and cocktail restaurant, at 5815 Nieman Road.
Both loans come from the Shawnee Entrepreneurial and Economic Development grant program (SEED, which is a city-run program that provides one-time payments in the form of forgivable loans to businesses as part of the city’s efforts to encourage expansion of existing businesses and attraction of new employers, according to city documents.
Katfish’s loan was approved with a 6-3 vote, with councilmembers Mike Kemmling, Angela Stiens and Jacklynn Walters in dissent.
DBF’s loan narrowly passed, 5-4, with Mayor Mickey Sandifer breaking the tie to approve it. Tony Gillette joined Kemmling, Stiens and Walters in dissent.
Councilmembers liked the general store concept
Owned by longtime Shawnee residents Brooke and Dave Franklin, Franklin’s General Store will occupy the old Red Thread and Jenkins Law Building.
The store combines retail shopping and serving food sourced from local farmers and businesses. The owners plan to open it this summer.
Local offerings will include a grab-and-go section with locally made drinks, pastries and sandwiches. Sit-down areas will be available at the business.
The project has an estimated cost of about $500,000. The loan would help with purchasing kitchen equipment, including for ventilation.
Councilmember Jeanie Murphy said she sees the project as a perfect fit for the area.
“It’s different,” she said. “We talk about a downtown feel. What is more downtown than a general store?”
Councilmembers were excited for a new restaurant
More members of the city council were amenable to approving a $55,000 loan to Katfish LLC for Gilda’s.
The money will be used for kitchen equipment and improvements to the exterior, such as new windows. Construction is already underway on the project.
The request earned Gillette’s support over the general store because it fulfills a need his constituents have been asking for in a prime area downtown, he said.
“People would always say, ‘We need more sit-down restaurants downtown, please,” he said. “This is a sit-down restaurant for downtown. I will be in favor of this project.”
The dissenting votes blamed ‘SEED fatigue’
Those in dissent on both projects made it clear that they had nothing against either concept. They were voting against the idea of giving out more SEED grants in lieu of funding projects like fixing pipes around the city.
“Ultimately it goes back to my philosophy on government — Is it really our job, if the bank won’t loan that money, for me to loan you my taxpayer dollars to make your business model work?” Kemmling said.
While Councilmember Kurt Knappen coined the term “SEED fatigue” at a previous meeting, he said that did not apply to these businesses because it helps get their projects off the ground.
“It’s gonna pay big dividends over time,” he said. “That’s exactly how I look at these investments in our local businesses. I don’t look at it as charity for local businesses. I look at them as investments in our community.”
Go deeper: Shawnee restaurant developers ask city for loan to help with renovations
