Merriam sets June 16 hearing on proposed 1% CID to help finance North Marketplace grocery project

The Merriam City Council on May 20 approved a resolution setting a June 16 public hearing to consider establishing a 1% community improvement district (CID) for the Merriam North Marketplace redevelopment.

City staff described the plan as two adjacent blocks at the northwest corner of Shawnee Mission Parkway and Antioch with an East Block the city would own to accommodate a grocery store and restaurant, and a West Block led by developer Drake with additional housing. "We are here tonight to set a public hearing so the public can come in and share their opinions about CID or this project as a whole," Mr. Engel, a city staff member, told the council.

Why it matters: staff said a grocery store is the top priority from recent resident surveys and that would likely require multimillion‑dollar incentives. The city presented an order‑of‑magnitude financial picture in the meeting: East Block construction estimated at about $18 million; stabilized annual grocery rent (year 3) estimated at $300,000 and restaurant rent about $150,000; West Block incentives modeled at roughly $30 million including a $13.7 million TIF for a parking structure, $4.4 million in site work, and $6.7 million in site acquisition. City staff said they expect to borrow roughly $31 million for city portions and to use the I‑35 TIF increment and a 1% CID dedicated sales tax to cover debt service.

CID structure and exclusions: staff said the CID would be a point‑of‑sale sales tax visible to customers at the time of purchase; by policy and council preference the grocery store itself would be excluded from the CID so customers would not pay the additional tax on groceries. The proposed CID would apply to restaurants and retail in the mapped district; staff listed potential CID members including Chipotle, CAVA, Starbucks, Jersey Mike’s, Treats Unleashed, Supplement Superstore, 30 Hop, Homegrown, Shake Shack and Denny’s.

Discussion and process: presenters said the project has been discussed with planning staff and development partners (Drake and others). City staff emphasized modeling the project to avoid using general‑fund dollars for economic development and to keep incentives within statutorily allowed streams. The resolution before the council only schedules a public hearing; it does not authorize any CID or incentive package. Council member Hans moved to set the hearing for June 16; Miss Shandridge seconded and the motion passed 8–0.

Next steps: the June 16 public hearing will allow residents and businesses to comment before council considers whether to form the CID and any accompanying financial commitments.