Pickleball, QuikTrip and a gym — Plans for ‘tired’ Olathe shopping center take shape

Plans to put millions of dollars into the vacant former Rosebud Plaza Shopping Center in Olathe are starting to firm up.

The shopping district, located at the northeast corner of Santa Fe Street and Mur-Len Road, is the focus of a recent slate of local incentive requests that seek to reimagine the area as Indian Creek Crossings, complete with new tenants and site upgrades.

David Christie recently acquired the bulk of the property, roughly 115,000 square feet that was once anchored by a Hobby Lobby that closed in 2018. Crunch Fitness recently also bought about 40,000 square feet of space in the complex that was previously home to a Goodwill.

Earlier this week, the Olathe Planning Commission unanimously voted to find the planned Indian Creek Crossings incentive district development conforms with PlanOlathe, the city’s existing comprehensive plan.

Additionally, the Olathe City Council on Tuesday set public hearings related to the proposed tax increment financing, or TIF, district’s redevelopment project plan and the establishment of a 1% Community Improvement District, or CID. Both hearings are set for Nov. 19.

“This is an area that had definitely been blighted, and I just want to thank the developer for what they’re doing,” Planning Commissioner Jeffery Creighton said.

What are TIFs and CIDs?

• TIF districts work by turning over tax revenues earned from increased property value — called increments — to a third party to cover or reimburse costs incurred in the development of a specific project or wider area.
• TIFs usually come with 20-year terms and have a maximum reimbursement amount, usually detailed in advance.
• Similarly, CIDs are a type of incentive that uses revenues raised through a temporary, special sales tax to reimburse developers for some development costs.
• For instance, with sales tax set at 9.475% in Olathe, an additional 1% tax would make it 10.475% within the confines of the district.
• In all, the developer estimates a total reimbursement from both incentives of about $7 million.

Rosebud renovation project to cost $26.4M

The project to remake the old Rosebud complex comes with an estimated $26.4 million price tag, which will include renovations to the building and parking upgrades at the site.

A new pickleball-focused entertainment venue has signed on to open a facility at the shopping center, and QuikTrip has signaled plans to move here from their store located near Interstate 35 and Santa Fe. Westlake Ace Hardware may also move to the site.

City Attorney Ron Shaver on Monday told the planning commission that the planned redevelopment could help to “revitalize a very tired commercial center” and also coincide with other public infrastructure upgrades scheduled in that corridor in the near term.

According to the developer’s estimate, the redevelopment could have as much as $12.7 million in expenses eligible for reimbursement through the TIF. (The project plan anticipates just $5 million would actually be reimbursed through the TIF district.)

Plus, another $2 million in revenue could reimburse the developer with the proposed CID, though $6 million in costs could be eligible.

Next steps:

• There’s been broad support for the redevelopment of the Rosebud Plaza shopping center so far.
• That being said, there are still a few barriers to clear before the incentive districts are finalized.
• For one thing, the city council will need to approve the project plan for the site.
• Plus, city staff and the developer are still negotiating the development agreement, which will require city council approval, as well.

Keep reading: Olathe OKs incentives for rundown shopping complex — Here’s the plan