BY LUCIE KRISMAN
A new Wendy’s is expected to open in Eudora as part of the new Nottingham development.
The Eudora City Commission approved the real estate agreement with Legacy Restaurant Group at its meeting Monday night.
The deal for the restaurant between city staff and Legacy Restaurant Group is expected to close in March 2021 and establishes an installment contract for payment, including a purchase price of $190,000 at closing and the rest being paid over a term of seven years, adding up to a total of $520,000.
City Attorney David Waters said Legacy will likely be the franchisee or operator of the Wendy's store and will be on the hook for the balance of the store pending closing.
"Between now and then, there will be significant due diligence on their part," Waters said. "This is a very important step in the process."
Waters said Wendy's entered the agreement with the restriction that the city would not allow similar establishments as occupants for at least 20 years, defining these similar establishments as businesses for which hamburger sales exceed 25% of its gross annual sales.
Waters said the agreement involves a due diligence period during which it is still possible for Wendy's to not proceed with the project.
While it is not guaranteed the transaction will close, the results of the closing would be beneficial for the city, including the possibility for Wendy's to attract similar industries to Eudora and generating more property tax for the city, Waters said.
"There is some risk on this, [but] there are also benefits if the site is developed for the city as well in terms of different types of revenue," Waters said.
Mayor Tim Reazin said while risk is not ideal, approving the agreement is a good step for the city.
"I personally think this is just another step in the right way," Reazin said. "We're reaching into these realms as newbies for the most part, so thank you everybody for the time spent."
City Manager Barack Matite said city staff will be able to review the company's financials and that city staff were able to close with Casey's General Store Friday as well.
Reach reporter Lucie Krisman at eudoratimes@gmail.com.
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