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The Unified Government will vote Thursday on whether to sign a letter of intent with a new operator to take over the former MERC Co+op grocery store location in Kansas City, Kansas.
The Economic Development and Finance Committee voted unanimously Monday night to fast-track the item to Thursday’s full commission agenda.
The potential operator, Santa Fe Grocers LLC, has asked the county for $150,000 for building improvements and a one-year rent exemption.
The 7-0 vote was not without heavy questioning from commissioners, including Commissioner Chuck Stites, who pushed back on the year of free rent.
"I don’t want this to be another bad deal," Stites said at Monday's meeting.
If the commission approves the letter of intent, the grocer can begin buying necessary materials for the store, though a final management agreement will still need to be negotiated.
According to the letter of intent, the operator will be responsible for all taxes and assessments.
If the property is tax-exempt, the operator will pay an agreed-upon payment in lieu of taxes, or PILOT, reflective of the equivalent tax burden during operations.
Anthony Estrada, founder of Santa Fe Grocers, said the rent exemption acts as a stabilization period to allow time for changes.
He noted that tenant improvement money is an industry standard when a landlord wants a property transformed.
"The key is for the store to be able to pay its own bills and just to continue to be a grocery store," Estrada said.
The MERC Co+op, which was downtown KCK’s only full-service store, closed in December.
Sylvia Watson, who has lived in KCK for 63 years, said she was against the MERC from the beginning because it did not meet her expectations for a grocery store.
She also gave a public comment at Monday's meeting.
"We needed a store that was clean, fresh vegetables, fruit, I mean things that any other grocery store has to offer," Watson said. "I’m tired of living in this community, spent money in this community, have worked in this community, and I’m always coming up short.”
Estrada actually had a hand in opening the MERC.
Prior to this endeavor, he worked for Associated Wholesale Grocers and helped open 15 stores in the Kansas City area.
Estrada says the transition to just two feels bearable, especially since the branding will be the same for both.
"It’s all about the details," Estrada said. "You’re literally making less than 3% net profit. So if you lose a dollar, it takes a lot to compensate for that dollar. So theft does make a difference."
Watson expressed concern about the new proposal and the request for county funds.
"I don’t think it’s a good idea,” Watson said. “Because here again, they’re asking us again for money. If people say one more time PILOT, I’m gonna scream.”
On Tuesday, Watson sent a counter-proposal to the mayor's office that she said requires zero financial assistance and keeps the county in a positive financial position.
Her framework includes an 18-month initial lease term to stabilize operations and meet federal New Market Tax Credit requirements by keeping the site operating as a grocery store.
The proposal features a lease-to-purchase option that could be exercised between 18 and 36 months, with a pre-agreed fixed price or appraised value.
Under Watson's plan, 100% of lease payments made during the first 18 months would apply toward the purchase price.
She noted her plan mirrors Santa Fe Grocers' structure without requiring county subsidies.
KSHB 41 reached out to the mayor's office for a comment on Watson's proposal and will update the article accordingly.
Estrada already owns and operates the former Sun Fresh at 31st and Prospect in Kansas City, Missouri, which had its own set of issues prior to closing.
He’s been working for the past few weeks to make the necessary improvements to the store, which is set to open May 13.
We met inside the Missouri store Tuesday.
In KCK, Estrada evaluated the 13,000-square-foot space and proposed moving seating areas to add grocery aisles.
He plans to maximize the space by adding a full-service meat department and a scratch bakery, while replacing alcohol sales with a larger dairy selection.
The store will have adjusted hours from 8 a.m. to 8 p.m.
"It’s too large to be a convenience store and too small to be a full-service grocery store," Estrada said. “Grocery stores can’t be cookie cutters. You can’t have the same format at every location.”
Estrada plans to partner with the Kansas City, Kansas, Police Department to provide de-escalation training for staff. He also envisions using the parking lot for outdoor community events like mobile health clinics and first responder days.
"I do feel like the community is going to embrace us once they see that we’re genuinely trying to support the community in every way and just be a part of their daily lives," Estrada said.
The grocery industry runs in Estrada's family.
His grandfather owned a corner grocery store in KCK over 50 years ago called Santa Fe Market, which inspired his company's name.
He goes by United Market LLC in KCMO.
The future name for both the Missouri and Kansas stores will be United Market.
The logo has two hands coming together, people coming together, and the sun and the moon coming together.
"We wanted to create some kind of unity," Estrada said. "I feel like the 35 years of all the struggles I’ve had have led me to this point.”
If the letter of intent is signed, Estrada estimates the KCK store could open in about three months.
He said he is open to listening to the community, and residents are already speaking up.
"Everybody’s got a voice, and everybody needs to be heard," Watson said.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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