After a previous development plan failed to go anywhere, plans to renovate an aging retail strip mall in downtown Shawnee are moving forward again.
On Monday, the Shawnee City Council approved two resolutions related to a revised plan to remake Merigold Plaza, 5907 Nieman Rd.
The first resolution amends a development agreement with the building’s owners, Karra Brothers, LLC., concerning the terms and conditions of a previously-approved $1.5 million economic development grant.
The second declares the city’s intent to issue up to $3 million more in federally taxable private activity bonds. The revised agreement does not include any additional incentive funding.
The first resolution Monday passed by a 5-2 vote, with Councilmembers Mike Kemmling and Angelia Stiens in dissent, and the second passed with a 7-0 vote. Councilmember Jacklynn Walters was absent.
Merigold Plaza rebirth has been in the works for a while
In 2023, plans were pitched to overhaul the more than 14,000-square-foot strip mall, which is currently home to Merigold Retail Liquor and Cigar Outlet, just south of where Nieman Road meets Johnson Drive.
The previous city council narrowly approved the $1.5 million grant in March 2023, but that funding was never issued because construction didn’t start and no new businesses ever moved in.
“That development agreement, which is effective May 3, 2023, included a 34-month deadline to complete the redevelopment and construction of the project. To date, no permits have been issued and no work has started on the project,” City Manager Paul Kramer said.
Calling in the help of developer Kevin Tubbesing of Stag Commercial, the Karra Family now hopes that the project can get moving.
“We got involved a few months ago when it was kind of evident that there was a problem with the project moving forward,” Tubbesing said. “(It was) kind of a combination of they reached out to us and them being referred to us, so we decided to get involved to see if I can kind of put this on a straight and narrow and get it going.”
Details of the new Merigold plan
Under the new plan approved Monday, the existing Merigold Wine and Spirits store will move to the southern portion of the building, while the northern part will be renovated to serve a variety of tenants.
In addition to the liquor store, there will be about 7,550 square feet of space that can serve a variety of purposes for the next 20 years, including dining and retail shops, Tubbesing said.
Tubbesing on Monday notably stopped short of promising a “signature” restaurant, as backers of the previous development did when pitching the idea last year.
“Three years from now, whatever restaurant I put in there today could go out of business,” he said. “That restaurant space might become a retailer, and then the retailer might become a restaurant space.”
The new plans also included adding a large outdoor patio, alley and 38 additional parking spots, which will be available to all downtown visitors.
In addition to the $1.5 million city grant and $3 million in bonds, the Karra Family plans to spend nearly $4 million of their own money on the project, Tubbesing said, something the Karras promised with the previous version of the project.
The agreement comes with new deadlines that, if not met, could mean the new funding agreement would be terminated.
Developers must provide proof of the project’s financing by Nov. 30. And construction is now required to start by Dec. 15.
The Karra family is excited by the project
The Karra Family has owned the liquor store for about 25 years, but has only owned the building itself since 2017.
Nick Karra, co-owners of Karra Brothers LLC, with his brother, Sam, said before they owned the building, they watched the property fall into disrepair.
“Prior to (buying the building), it really hadn’t been renovated. Any previous landlords didn’t keep up with the maintenance of it for 30 to 40 years,” he said. “So when we took it over, it was in pretty rough shape.”
During the past eight years, the Karra family has been putting money into fixing the property, including replacing the roof and repaving the parking lot.
While Karra recognizes that some people call the building an eyesore, he said the goal of the project is to change that mindset.
“We did our due diligence over the years by maintaining it as a tenant to the best of our abilities,” he said.
In order to make sure the building brings in the businesses that will thrive, Karra said they’re paying close attention to what residents want.
“We really understood everyone’s perspective on what they’re looking for in downtown Shawnee. And the common theme is some high quality tenants, especially restaurants,” he said. “We’re going to execute on those ideas and deliver a very high quality product to an area that is growing very, very rapidly.”
City Council wants to see it move forward
Having previously supported funding for the project, Councilmember Kurt Knappen said the new agreement is what the original deal should have been.
“It’s just a way better agreement overall,” he said. “We’ve made a lot of progress in downtown Shawnee, but this is truly the last great eyesore and building that needs to be taken care of.”
Though she originally voted for the first version of the project last year, Councilmember Stiens expressed skepticism while voting “no” on the new plan Monday.
“I think (with the original plans), we did have a lot of grandeur with things that maybe we thought were going to come in, like an agreement with a higher-end restaurant,” she said. “As we see a lot of restaurants and things are closing, I guess my reservation is, so what are — and maybe you can’t even answer this — what kind of things do we think we can attract? I know we’re trying to (help) the downtown, but then there are other eyesores in this area.”
The goal is to not rush to fill the spaces but bring in the right restaurants and businesses that will add value to the development, Tubbesing said.
“This is a very attractive project, and it’ll be filled with quality (businesses),” he said.
Go deeper: Plan to remake downtown Shawnee retail strip pulls off narrow win
