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Fairway council approves development agreement and creates 53rd Street CID to back proposed American Fire restaurant
Summary
The Fairway City Council approved a development agreement and enacted an ordinance to create a 53rd Street Community Improvement District (CID) that will impose a 2% on-site CID sales tax to reimburse an estimated $3.3 million redevelopment of the old Houlihan's building for the American Fire restaurant; the resolution passed with a recorded 7–1 vote.
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The Fairway City Council approved a development agreement and voted to establish the 53rd Street Community Improvement District on Dec. 8, clearing the way for a proposed full‑service restaurant, American Fire, at the old Houlihan’s site.
Councilmember (speaker 5) moved to adopt the development agreement with W. Vinzant restaurants; the motion was seconded and the council approved the resolution (the transcript records seven yes votes and one no). The council then approved ordinance 1840 to form the CID, which the mayor said passed unanimously.
Why it matters: the agreement creates a geographically limited, 2% CID sales tax applied at the restaurant site. Under the pay‑as‑you‑go structure explained by city attorney Jim Mossman, the CID sales tax would reimburse eligible development costs over a 22‑year period; no bonds would be issued and the city would not pledge existing revenue streams. Mossman said the project’s overall budget is listed at $3,316,110 and the CID cap — the maximum reimbursable amount — is $1,658,055, effectively a 50% public/private split as described in the agreement.
“It's going to be a very thoughtful approach that's going to seek to serve what the people here want,” restaurateur Whitney Van Zandt said during his presentation of the American Fire concept, adding that “we are going to have a strong family orientation.” Van Zandt described menu examples and said entrees would generally run from the low‑20s up to the 40s, with flexibility to respond to neighborhood preferences.
City administrator Nathan Noblemeyer summarized the verification and distribution process: the operator will remit sales taxes to the state, the state remits to the city, and the city will verify certificates of expenditure before quarterly electronic transfers to the developer. “So we're not using existing dollars from the city budget over the life of the 22‑year term,” Noblemeyer said. He added that legal staff — and a third party if necessary — can review submitted expenditures to confirm eligibility before distributions are made.
Council discussion focused on the mechanics and precedent. One councilmember asked whether “pay as you go” means the city will not issue debt; Noblemeyer confirmed no city debt is being issued and that distributions will occur only after eligible costs are verified. Several councilmembers and members of the public said the long‑vacant building and the landlord’s willingness to proceed made this CID appropriate for Fairway.
Public comment at the hearing was largely supportive. Tim Beyasar, a nearby resident, said, “I'd very happily pay 2% more per meal to have it right across the street,” and other neighbors said they welcomed a restaurant within walking distance.
What was approved: the council approved the resolution to adopt the development agreement and then approved ordinance 1840 to establish the CID. The development agreement requires the developer to begin construction by Feb. 1 and complete improvements by Aug. 1 (dates listed in the agreement), and includes a civic participation commitment, including an annual $1,000 donation to the Shawnee Indian Mission Foundation.
What happens next: staff emphasized that approval tonight covers the development agreement and CID creation only. Exterior and interior design, signage and any facade changes will follow the city’s standard permitting and planning commission review. The council did not approve final building elevations or permits as part of tonight’s votes.
Financial details from the agreement: estimated project budget $3,316,110; CID cap $1,658,055; reimbursement period 22 years; start of construction by Feb. 1; completion by Aug. 1; eligible expenses defined in an exhibit to the agreement and subject to verification.

