Olathe has started the process of issuing incentives to two new eateries that are coming to the city’s downtown area next year.
Pizza 51 South and Third Street Social have both requested industrial revenue bonds and 10-year full property tax abatements, as well as 2% Community Improvement District special sales taxes.
The two businesses are part of a trio of Kansas City-based restaurants that recently announced plans to open new locations in downtown Olathe. The third is Char Bar, which also is expected to eventually add pickleball courts to its new Olathe venue.
On Tuesday, the Olathe City Council in a 6-0 voter indicated its intent to issue $1.08 million in bonds for Pizza 51 South and $6.5 million in bonds for Third Street Social.
Also, as part of the consent agenda, the city council scheduled public hearings for the Community Improvement District sales taxes for early next year.
Community Improvement Districts are a type of incentive that use revenues raised through a temporary, special sales tax assessed within the boundaries of a specified area to reimburse developers for some project costs. The extra sales tax is applied on top of existing local and state sales taxes.
Councilmember Kevin Gilmore was absent from Tuesday’s meeting.
Pizza 51 redeveloping downtown Olathe auto shop
Pizza 51 is a pizzeria that will move into the old auto service center at 200 S. Kansas Ave. The restaurant — which first opened in the Kansas City Brookside area about 20 years ago in an old gas station — also serves sandwiches and beer.
Their plans include redeveloping the existing 1,700-square-foot building on the site and roughly doubling its footprint with an expansion and adding an 880-square-foot outdoor patio for dining
Over the next decade, the restaurant expects to add 30 new jobs, with an average starting wage of $19 per hour.
In addition to the bonds, Pizza 51 has requested a 10-year, 100% property tax abatement.
Pizza 51 previously had a Johnson County location in Fairway called Pizza 51 West, but it closed at the beginning of 2019 after seven years.
Third Street Social redeveloping a downtown storefront
Third Street Social, an American-style restaurant that started in Lee’s Summit, Missouri, will take over an old city building at 135 S. Kansas Ave., near Loula Street.
With multiple locations already on the Missouri side and some sister dining concepts, the restaurant offers brunch, happy hour, lunch and dinner.
They intend to renovate the existing 11,500-square-foot space that most recently served as the city’s IT office.
The restaurant expects to add 89 new jobs over the next 10 years, with an average starting salary of $47,000.
Third Street Social has also requested a 10-year, 100% property tax abatement.
Next steps for incentives:
- The vote this week only signals the city’s intent to issue the bonds and offer the property tax abatements to the two businesses.
- The actual issuance will require further consideration from the city council.
- Additionally, the public hearings for establishing the Community Improvement Districts are now scheduled for Jan. 7.
- From there, more steps are required before the incentive district is formalized.
- Pizza 51 is targeting a mid-2025 opening date, while Third Street Social is working to open later in 2025.
More on the new downtown Olathe businesses: Trio of popular KC eateries coming to downtown Olathe
