Olathe to demolish former Italian restaurant, other buildings for Santa Fe project

After the Olathe location of Tony’s Italian restaurant closed last year, city planning documents show the restaurant’s former building will soon be demolished along with several other buildings as the city prepares for an ambitious overhaul of East Santa Fe Street.

To improve Santa Fe from Ridgeview Road to Mur-Len Road, Olathe must purchase about $22 million worth of land and property. Now, the city is preparing to demolish the buildings and is preparing to strike a deal with a Kansas City demolition company to complete the work.

Under a construction agreement approved Tuesday by the Olathe City Council, contractors will remove structures, disconnect and restrict utilities between the 1800 and 1900 blocks of Santa Fe and several other nearby addresses.

The demolition company will also remove and fill foundations and complete other work needed to prepare the site for road construction, the agreement said.

Buildings slated for demolition include the former Avis car rental store, Erv’s Vaccums, the former Tony’s Italian Restaurant building, a dental office, a former auto repair shop and more. Buildings on the north side of Santa Fe and on the south side of the former Town Square shopping center will be demolished.

Some of the buildings slated for demolition were found to contain asbestos, the agreement said. The inspection report has been provided to the contractor.

Businesses that have closed in the area, including Toni’s, The Double Nickel Bar and Grill and others, have cited the project as the reason for their closure or relocation. The project is expected to displace approximately 20 businesses.

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Last month, the City Council approved engineer surveys of the final 27 parcels of land involved in the city’s projects, allowing Olathe to acquire the parcels through negotiations with property owners or eminent domain.

A project location map shows buildings along East Santa Fe Street that will be demolished to make way for road improvements and the Interstate 35 interchange project in Olathe.

A project location map shows buildings along East Santa Fe Street that will be demolished to make way for road improvements and the Interstate 35 interchange project in Olathe.

(City of Olathe)

The owners of Toni’s Italian said last year they were having trouble finding another location in Olathe because of high rent costs.

The restaurant has since opened a new location in Shawnee, at 22716 Midland Drive.

City of Olathe spokesman Cody Kennedy said last year that the city has been in frequent communication with property owners and businesses affected by the project.

Kennedy said at the time that the city was following federal law in advising tenants throughout the process.

Safety improvements to Santa Fe and I-35

City officials say the crash rate at the intersection of Santa Fe and Interstate 35 is about six times the national average.

The approximately $200 million project will include reconstruction of the Interstate 35 overpass, new bridges, widened sidewalks, road realignments and expansions, new traffic lights, medians, sidewalks and other safety improvements.

The Kansas Department of Transportation tentatively plans to begin improvements to Interstate 35 later this year, while construction in Santa Fe should begin in late 2027.

The Olathe City Council on Tuesday approved a contract with Industrial Salvage & Wrecking Co. Inc. of Kansas City to demolish the building in Santa Fe. The company is licensed to operate in Missouri and Kansas.

Bids for the demolition project ranged from $511,700 to $1.3 million. According to the agenda item, industrial salvage and wreckage was the lowest bid.

The Star’s Jenna Thompson and Taylor O’Connor contributed previous reporting.

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