Shawnee approves bonds for two new hotels
Shawnee The city has approved bonds worth up to $12 million for the construction of two new hotels and a commercial building on the northeast corner of Midland Drive and Renner Road at Monday's City Council meeting.
The private revenue bonds (IRBs) will pay for portions of the site's construction, furnishing and the equipping of the hotels. The resolution approving the bonds was approved by the City Council 8-,0 and several of the council members voiced their excitement about the project.
"I think it’s very, very positive for Shawnee," Dan Pflumm said.
The developer, Shree Ram Jay Ram Property, LP, plans to build two hotels, a Comfort Inn and a Fairfield Inn, and a strip commercial building on the lot. The Shawnee Park Christian Church currently located on the corner has sold their property to the developer and plan to relocate. One of the hotels will be a 40,830-square-foot Fairfield by Marriott Inn and Suites with 78 rooms. The other hotel will be a 40,620-square-foot Comfort Inn and Suites containing 65 rooms. Both hotel buildings would be three stories tall, according to their preliminary plans.
The commercial building is proposed to be a 12,540-square-foot multi-tenant building on the southwest corner of the 16500 Midland Drive lot. The shopping center will be designed with a concept to hold nine different businesses.
Dilip Patel, the owner and general manager of the development company, said the project will be built to the highest levels of quality standards. Patel owns the Best Western near the Kansas Speedway and has built more than 25 hotels in Kansas. He said that the developers had been looking to build more hotels along the Interstate 435 corridor south of the Village West development for years.
"Of course, overflow from there is coming down here," Patel said.
He said he will build the hotels to the same standards he has built others and said they will be buildings that Shawnee will be proud of.
"We will not just build it right, but we will build it for the long-term," Patel said.
The hotels would be Shawnee's fourth and fifth hotels and would offer a different price point than the currently existing Hampton Inn and Courtyard Marriott located on Midland Drive.
Comfort Inn’s room rate is going to be between $90 and $100, according to the developer, while the Fairfield Inn & Suites room rate is estimated to be between $99 and $129.
The Shawnee City Council approved the rezoning of the 5.59 acres of land from Agricultural to Planned Unit Development Office and Commercial, as well as the site's preliminary plan, at their December meeting.
The preliminary plan for the site also includes a potential fourth building of 39,437 square feet to be used as an office or sit-down restaurant.
A cost-benefit analysis outline by Andrew Nave, Executive Director of the Economic Development Council estimates that the hotels alone will bring 43 jobs to Shawnee and that the city will earn $1.3 million in new city taxes and revenues over the next ten years. Over that same period, the city will have have $243,136 in costs and abatements associated with the project. Overall, the cost to benefit ratio, according to the study, is 5.6-to-1 and the payback period of the bonds issued would be one year.
The project is a source of excitement for Kevin Fern, executive director of the Shawnee Convention and Visitors Bureau.
"We have a lot of demand in Shawnee," Fern said. "We're really making a lot of progress with these two hotels."