After years of planning and property acquisition, demolition is now well underway on Olathe’s overhaul of the I-35 and Santa Fe interchange.
Construction crews in recent weeks have started demolishing buildings east of I-35, clearing the land the city previously acquired to make way for the improvements at the junction.
City officials have said that after demolition is complete this year, attention will shift to relocating underground utility lines, which will last into 2027. Construction on the interchange itself is expected to begin next year and run through 2030.
So far, the demolition work hasn’t caused major disruptions to traffic for drivers passing through the corridor. Businesses located within the corridor also say they haven’t seen an impact on customer foot traffic.
Ray Mutters, who works at Tire City, 300 North Rogers Road, just to the north of razed properties, said business hasn’t been affected yet.
Tire City is now the lone building amongst a stretch of cleared lots and rubble, but Mutters said even the demolition went smoothly.
“They put up fences and not a brick hit the building,” he said.
Lisa Bledsoe, owner of tea house Tea-Biotics Kombucha, about a block north of Tire City, said she hasn’t seen less business since the demolition began.
“Not yet,” Bledsoe said. “But I do anticipate that we will.”
Bledsoe, who says about 90% of her business comes from foot traffic, noted that customers are also wondering how the interchange’s overhaul will impact them.
“We’ve had some customers asking about it, too,” she said. “Because you can just tell it’s getting ready to happen.”
While things have remained steady for Mutters and Bledsoe, both say they expect a decrease in business once the Santa Fe exit closes for construction because their buildings will be harder to access.
About the project
The I-35/Santa Fe Corridor Improvements project is the largest infrastructure endeavor in Olathe’s history, according to city officials.
The Kansas Department of Transportation is funding about 80% of the $200 million project, with the city covering the remaining $40 million through bond funding.
The new interchange will be a single-point urban interchange, or SPUI, similar to one currently at I-35 and 87th Street in Lenexa.
According to the city, this type of interchange allows left-turning traffic to move simultaneously through one central signal, giving more space for large vehicles and smoother movement through the intersection.
The goal is a safer interchange with less traffic congestion.
“We know our residents want and need a faster, safer route through the heart of our city,” Mayor John Bacon previously said of the project.
Other plans for the I-35/Santa Fe project include:
- Adding north/south auxiliary lanes on I-35 between 119th Street and Santa Fe
- Repaving I-35
- Widespread upgrades to the Santa Fe corridor between Ridgeview Road and Mur-Len Road, including rerouting Rogers Road to cross under Santa Fe
- Expansion of the Old Highway 56 bridge flyover to two lanes to lessen congestion on Mahaffie Street
“The new I-35 interchange will be a true gateway into Olathe,” Mayor John Bacon said at last year’s State of the City address, “one that safely accommodates both vehicles and pedestrians.”
Acquiring the land
The buildings that have been demolished in recent weeks were acquired by the city through eminent domain, which allows governments to take private property for public use as long as the owners receive fair compensation.
Olathe notified the property owners through mail that the city needed their land for the project. It then negotiated a sale with the owners and made formal offers. The city also offered funds to help the businesses relocate in most cases.
The use of eminent domain along the corridor has been controversial since Olathe began acquiring land for the interchange overhaul in 2024.
In February of 2025, The Double Nickel Bar & Grill, which was located southeast of the intersection, closed after 30 years. The owner said she had hoped to relocate the business to somewhere else in Olathe but wasn’t able to find an affordable option.
“We don’t have an option, we gotta go,” owner Mary Armstrong told the Post at the time. “There’s nothing affordable right now.”
Toni’s Italian Restaurant also closed its Olathe location last year. The owners said the decision was “entirely” because of the interchange.
Bikes for the Likes of Us moved to downtown Olathe after 10 years on Santa Fe Street.
Bledsoe, the tea shop owner, is hopeful that her customers and other businesses will be able to adapt to the changes once construction begins.
“I’m sure it’s going to create new habits for people,” she said. “For some people, it won’t be a big deal. For other people, it will.”
