Olathe has approved nearly $10 million in eminent domain payments to about 21 property owners to clear the way for the Santa Fe Street reconstruction, what city officials call the largest infrastructure project in Olathe's history.

Johnson County District Court records show the payments as of Aug. 25, according to a Kansas City Star investigation published Aug. 26. The largest single payout was $2.7 million to Celebrate Holdings Olathe LLC, which owned land where Celebrate Dental, Sunflower Bank and other businesses operated. Pegasus Realty received the second-largest payment at $1.28 million for land that housed Bank of the West and M&M Investments.

Five court cases have resulted in City Council-approved eminent domain payments so far. As of mid-August, the city was still negotiating with four remaining property owners, city spokesperson Cody Kennedy told the Star.

$75.2 million land budget

The project's total land acquisition budget is $75.2 million, though not all of that goes to property owners. The line item also covers attorney's fees, legal costs and maintenance expenses like mowing on acquired parcels.

City attorneys contacted each property owner, provided third-party appraisals and allowed months of discussion before filing for condemnation when no agreement was reached.

"There were multiple departments involved… and each one plays a critical role," Kennedy said. "As this project is not only City but federal in conjunction with KDOT, there are strict federal and state guidelines that are involved."

The $285 million I-35/Santa Fe corridor project will rebuild Santa Fe Street from Ridgeview Road to Mur-Len Road and construct a new single-point urban interchange at Interstate 35, similar to the one at I-35 and 87th Street in Lenexa. Auxiliary lanes will be added on I-35 from Santa Fe to 119th Street.

What commuters should expect

Utility companies will begin relocating lines along the corridor in the coming months, which could affect Santa Fe commuters through at least September 2027. Assistant city engineer Therese Vink told the City Council in June that there will be no full road closures during utility work, only occasional lane and sidewalk closures.

KDOT's I-35 improvements are expected to begin between October and the end of 2026 and continue through 2028.

The full demolition and rebuild of Santa Fe Street begins at the end of 2027. In 2029, the road will close completely. Some interstate ramps will also close, though the city plans to keep them open as long as possible. The project is expected to wrap up around summer 2030.

Councilmember Jeff Creighton said at the June 16 council meeting that constituents have raised concerns about the corridor's appearance now that buildings have been demolished, including complaints about semitrailers and box trucks parked on cleared lots.

Open house Thursday

The city and KDOT are hosting an open house from 4 to 6 p.m. Aug. 27 at the Olathe Police Department, 501 E. Old 56 Hwy., for residents to hear project updates and ask questions.