Two new eateries coming to downtown Olathe will get a boost from special, limited sales tax districts.
Popular KC-based restaurants Pizza 51 South and Third Street Social are both redeveloping old buildings on South Kansas Avenue for new locations.
Last week, the Olathe City Council unanimously authorized the creation of two separate, temporary sales tax districts called Community Improvement Districts, or CIDs, to help finance the renovation in two votes.
“We’re excited about these new restaurants in our downtown,” said Mayor John Bacon, signaling more announcements to come. “For years, residents have indicated to us that they wanted us to focus on our downtown, to have more places to go eat and do things, and so this is just the beginning.”
Both CIDs set up an individual 2% special sales tax tied specifically to each restaurant for a 22-year term. The revenue from the extra sales tax can be used to reimburse eligible project costs as it is collected.
Those districts come on top of the industrial revenue bonds and 10-year, full property tax abatements the city signaled its intent to issue to both restaurants.
Third Street Social to redevelop old Olathe city building
- Third Street Social is an American-style restaurant that began in Lee’s Summit, Missouri, and now has multiple locations on the Missouri side.
- It plans to take over an old 11,500-square-foot city building at 135 S. Kansas Ave., near Loula Street.
- The renovation is estimated to cost just over $6 million, according to city documents.
- Nearly all of that could be reimbursed through the CID.
- The special sales tax collection for this CID is expected to begin on Oct. 1.
Pizza 51 South going into old downtown auto shop
- Pizza 51 also started on the Missouri side in the Brookside neighborhood about 20 years ago. It previously had a Johnson County location in Fairway called Pizza 51 West.
- The pizzeria plans to redevelop an existing 1,700-square-foot former auto service center at 200 S. Kansas Ave. and roughly double its footprint with an expansion.
- About $736,000 of the total project cost could be eligible for reimbursement through the CID, according to city documents.
- The special sales tax collection for this CID is expected to begin on July 1.
Another popular KC restaurant is eyeballing downtown Olathe
- Char Bar is also expected to eventually add a restaurant and entertainment facility to downtown Olathe.
- Per an announcement made by Mayor Bacon in October last year, the barbecue joint plans to take over the former Olathe Housing Authority building at 200 W. Santa Fe.
- That building is just shy of 9,000 square feet.
- So far, the city council has yet to consider any planning or incentive applications for Char Bar’s redevelopment effort.
- It’s unclear when the restaurant intends to open its downtown Olathe space and how much the project could cost.
More downtown Olathe dining news: Trio of popular KC eateries coming to downtown Olathe
