Buying a La Quinta Inn and Suites in Lenexa to convert it into a homeless shelter is going to cost more and may take longer than expected — should the county commission ultimately go ahead with the move.
The growing cost and elongated timeline are due to an increase in the amount required to buy out the hotel and a delay in finding an entity to run it.
Commission approves extra $350K for hotel buyout
County commissioners at the board’s regular meeting last Thursday expressed dismay over the news that a franchise liquidation fee originally quoted by the owner as $150,000 will actually be $500,000.
Nevertheless, a majority of the commission voted to set aside $350,000 more so the county could continue to explore the idea of a homeless shelter and service center near the intersection of Interstate 35 and 95th Street.
“I have heartburn about the franchise fee,” said Commissioner Janeé Hanzlick. “I wish we would have known that sooner.”
“It is what it is,” she continued. “It’s our choice whether we hold up the project for $350,000 or move ahead.”
The commission proposed a homeless shelter for the 2.6-acre site, which includes a vacant Denny’s restaurant in December and is now in the due diligence phase.
The timeline for acquiring the site will also be extended and the new closing date is Oct. 31, 2024, eight weeks later than originally set.
Skeptics voice financial concerns: “Beginning of the money pit”
Commissioners were not happy about the unexpected cost.
Commissioner Michael Ashcraft questioned why the original estimate on the liquidation fee was so much lower, wondering if greed was involved once it was clear that the county was committed to the shelter idea.
Commissioner Charlotte O’Hara said, “This is just the beginning of the money pit.”
The county has already made its first earnest money payment of $100,000 and another $100,000 is due in June, she noted.
A third earnest payment of $150,000 would be due at closing, with the earnest payments folded back into the purchase price if the sale is successful.
Public commenters also questioned the added expense.
Bob Hobert, of Westwood Hills, said the buildings have water damage and will need extensive renovation.
“I don’t think this board appreciates the quagmire you are creating. In my judgment this board is naive in the extreme in regard to this project and its operational efficacy going forward,” he said.
Supporters voice resolve: ‘We need a homeless center’
Some of the five commissioners who voted for it were reluctant to let the deal fall through because of the added cost and some mentioned that they’d like to explore the idea thoroughly before deciding whether to go ahead with it.
Hanzlick pointed out that the county would not pay the additional $350,000 until closing.
“Do we need a homeless center or do we not?” said Commissioner Jeff Meyers. “My belief is we need a homeless center.”
He said he’d like to look at all the facts and decide whether the shelter idea could realistically work. “Right now, I sure want to try to make it work,” he said.
County still searching for an operator
The timeline was extended because of an expected delay getting a recommendation for the owner/operator of the shelter and how that affects efforts to get a special use permit from Lenexa.
Once it is purchased, county officials intend to turn it over to another entity to run.
United Community Services, which is managing the search, will not be able to submit a recommendation until mid-May, rather than the original April 1, according to county staff.
The delay will also delay the quest for the permit.
Commissioners Ashcraft and O’Hara each said they agreed with extending the time for investigating these matters.
O’Hara agreed the county needs a homeless shelter but did not agree with the area proposed for it.
However, a motion to separate the time extension from the additional money failed and one vote was taken, with O’Hara and Ashcraft voting against.
