Council approves Genesis dealership plan at Frontage Road; approves IRB intent amid public concern

MERRIAM, Kan.

The Merriam City Council on Aug. 25, 2025 unanimously approved a change-of-use request and preliminary development plan to permit an automobile sales and service dealership at 7220 West Frontage Road and later approved a resolution of intent to issue industrial revenue bonds (IRBs) connected to the project.

Planning staff and the applicant described the redevelopment plan as demolition of the front 60,000-square-foot building and construction of a new roughly 22,000-square-foot Genesis dealership. The rear 14,000-square-foot building that currently houses ProSource flooring would remain. Planning staff said the project increases on-site green space slightly (about a 2% net gain in overall green area) and retains two existing access points off West Frontage Road.

Director of Community Development Brian Dyer told council the site lies between I-35 and the BNSF railroad and that the applicant, Walser Automotive Group, purchased the property in June and intends to construct the dealership with showroom, service bays and vehicle-storage areas. Dyer said the applicant provided a traffic memo concluding the redevelopment would generate no increase in peak traffic compared with existing use, and a stormwater memo showing a modest decrease in impervious surface and that the existing on-site detention pond can handle the runoff. Dyer said planning commission members unanimously recommended approval following a public hearing.

Scott Slaughey, the applicant's architect, said the design includes extensive showroom glazing and a tilt-up/ precast panel exterior; he said the building will have a photo bay, car wash and a service department and estimated about an eight-month construction timeline and an opening in late summer 2026. Slaughey said the project team worked with KDOT to permit additional landscaping in the KDOT right of way.

Walser representatives said the project would generate local sales taxes and add jobs. Pete Heaven of Walser's team said he represents the applicant and Don Schilling, a Walser executive, said the Walser Foundation directs about 5% of pretax dollars to local charities in markets where dealers operate. Applicant representatives told council they expect roughly $40 million in annual sales at the site once operational and estimated 24 full-time employees initially.

Not all speakers supported the financial incentives tied to the project. A public commenter warned that the Genesis project would displace a unique local business, Strawberry Hill Pobatitiya, and said the city should not provide what she called "$1,800,000 to the rich." The council heard multiple questions from members about truck operations and whether carriers would be unloaded on the public frontage; staff pointed to a truck turn template in the plan set and a standard note prohibiting loading in the right of way.

Council action: The council voted 7-0 to concur with the planning commission and approve the change of use and preliminary development plan. Later, after staff explained IRB mechanics and sales-tax exemption calculations, the council approved by a 6-1 vote a resolution of intent to issue federally taxable IRBs in a principal amount not to exceed $18,619,000; Council member Cozemeyer recorded the lone no vote and said the IRB was unnecessary because demolition had already begun.

Staff estimates for IRB-related sales-tax relief used sample numbers in the packet: with $10,000,000 in assumed taxable construction costs, the sales-tax exemption value is about 9.475% of those costs. Staff noted the state portion of that exemption would represent roughly $650,000, Johnson County about $147,000, and the city about $150,000 in forgone local sales tax if all materials were purchased inside the city.

Ending: The approved development plan allows the applicant to complete site permitting and building permits; the IRB resolution is a first step in the incentive process and will return to council later for final bond issuance and associated documents if the project moves forward.