KANSAS CITY, Kan. — The Board of Commissioners of the Unified Government of Wyandotte County and Kansas City, Kansas, voted 9-0 to approve a resolution for Santa Fe Grocers LLC to operate a grocery store at the site of the former MERC Co+op in downtown Kansas City, Kansas.
The official synopsis on Thursday's agenda stated, "Adoption of a resolution approving the Letter of Intent between the Unified Government and Santa Fe Grocers regarding the management and operation of a grocery store at 501 Minnesota Avenue in Kansas City, Kansas."
KSHB 41's Wyandotte County reporter Rachel Henderson has extensively covered the story of the closure of the Merc Co+op store and efforts to bring a new store to downtown KCK.
Henderson reported the Unified Government would waive the $5,000 monthly occupancy fee through April 30, 2027.
Anthony Estrada, founder of Santa Fe Grocers, told Henderson the rent exemption acts as a stabilization period to allow time for changes.
He also explained 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.
Santa Fe Grocers would have an exclusive option to buy the building starting in the third year of the agreement.
As a condition of the sale, the operator would have to sign a restrictive covenant agreeing to continuously operate a full-service grocery store at the location for 10 years.
The store would be required to operate daily from at least 8 a.m. to 8 p.m., accept EBT/SNAP benefits, implement affordability pricing strategies and make “best efforts” to hire residents from surrounding neighborhoods.
Henderson got an evaluation on the new KCK store from Estrada.
He said 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.
"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 will work with the Kansas City, Kansas, Police Department to provide de-escalation training for staff. He also wants to use the store's parking lot for outdoor community events.
"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.
According to the letter of intent, the operator will be responsible for all taxes and assessments.
Henderson reported that Estrada already owns and operates the former Sun Fresh at 31st and Prospect in Kansas City, Missouri, which had its own set of issues before closing. The store is undergoing remodeling and is set to open May 13.
His business in KCMO is called United Market LLC.
Estrada's grandfather owned a corner grocery store in KCK called Santa Fe Market, which inspired his company's name in KCK.
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