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City reports grocery interest for former Hy‑Vee site, hotel discussions continue; parking study and trolley examined
Summary
Economic development staff told the committee a Kansas City grocer is interested in the former Hy‑Vee site and the city has applied for a $250,000 USDA FAIR grant; city also reported ongoing hotel brand discussions for Lot 44, updates on a Darrell development pro forma, Nouveau City Market operator selection and a comprehensive parking study that will examine a circulator/trolley option.
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Economic development staff updated the Development Committee on Feb. 19 about a set of commercial and development prospects and a downtown parking study.
Bill Michael said a Kansas City-based grocery operator that runs stores in low-income neighborhoods has inspected the former Hy‑Vee site and that the city applied for a USDA FARE (FAIR) grant for $250,000 to help outfit a potential tenant with shelving and refrigeration. "We were then invited to submit a full application, which we did in December and we will find out in March if we are awarded that money," Michael said. Staff also said they are talking with IGA as an alternative operator if the Kansas City partnership does not proceed. Michael noted that Hy‑Vee remains the leaseholder and the property owner is Agree Realty, so any transition would require coordination with those parties.
On a hotel planned for Lot 44, staff said Conlin Construction and partners were selected and are working with hotel flag operators (including Marriott corporate) to determine the best flag given proximity to another Marriott property. Construction was still expected in 2025 contingent on brand decisions.
Staff provided updates on the Darrell (developer) project at 116 Sixteenth Avenue Southeast, noting the developer is working with HUD on financing and intends to present an updated pro forma and renderings before seeking a development agreement; staff said the developer hopes to have a signed development agreement by June 1. For Nouveau City Market, staff said the market has selected Field to Family for operations; the organization works with local producers and will use about 2,200 sq. ft. for retail and distribution.
The committee also heard that Kimley-Horn is assembling a comprehensive parking study of downtown subareas (including Czech Village, Nouveau and New Bohemia); the consultant will compile existing-condition data and examine demand projections, pricing, technology and a potential circulator/trolley. Staff indicated consultants will present initial findings in March/April and noted shifting parking demand patterns tied to downtown housing and new attractions. Committee members asked about contract arrangements (DPMI, Park CR, Economic Alliance) and the study’s inclusion of various parking assets.
