Developer proposes new hotel, retail near Eisenhower National Airport

A new hotel and restaurant or retail outlets not already in the market could be coming to the area just north of the new Wichita Eisenhower National Airport.

Natman Real Estate is asking the Wichita City Council to approve about $8.8 million through a community improvement district for property at 600 S. Holland, near Kellogg and Ridge, just north of the airport, according to city documents.

City Council member Jeff Blubaugh, who represents southwest Wichita, said the property’s buildings have sat empty and dilapidated for several years.

“It’s rough,” he said. “I think this (proposal) could be a good way to put another commercial anchor in an area that’s not getting a lot of activity now.”

Raju Sheth, who works with Natman Real Estate, said the first phase of construction would include an upscale extended stay hotel. The second phase would include several restaurants or a retail center.

The parcel next door to it has been vacant for 10 years, he said. The site is where the former Fortune Cookie restaurant was located.

"You need to have something there," Sheth said. "It's such a dump."

"Unless they do something it's going to get worse and worse there."

A community improvement district, or CID, permits a special tax up to 2 percent on the retailers in a specific area. The money can be used to reimburse the developer for upfront costs. The arrangement could last up to 22 years or until a specified amount is reached, Mark Elder of the city’s economic development department said.

The council set a public hearing, the next step of the CID approval process, for July 7.

The property is not a good welcome to Wichita for people leaving the airport, Blubaugh said.

“When you come in from the new airport, the first thing you don’t want to see is an abandoned hotel and a sign hanging off the building,” he said.

Blubaugh said the CID is an incentive for developers without having most taxpayers subsidize the cost, given that the sales tax comes from sales at the future hotel and retail shops.

“To me it’s a no-brainer,” Blubaugh said. “Over and over again I’m told by people in my district there’s too much focus on downtown and to share the wealth. These opportunities on the west side aren’t costing the taxpayer anything other than those who use the facility.”

The developer estimates that the project would cost $1 million in land acquisition; $250,000 in demolition; $750,000 in site improvements; and $6 million for each of the two phases of construction, according to city documents. The plan includes a 20 percent, or $2.8 million, contingency fund.

This story was originally published June 9, 2015 at 7:14 AM with the headline "Developer proposes new hotel, retail near Eisenhower National Airport."