Festus officials say they are optimistic that the letter of intent Dunkin’ Donuts recently signed with broker Wall Properties of Denver means the national chain will open a shop on a small tract of city-owned land.
On June 22, Festus City Administrator Happy Welch told the City Council that Dunkin’ Donuts officials signed a letter of intent to build a store on a 0.28-acre tract at the northwest corner of Lee Avenue and Veterans Boulevard (Hwy. A), next to the Fazoli’s restaurant.
Wall Properties hopes to have a lease agreement with Dunkin’ Donuts in place in the next couple of weeks, Welch said.
Mayor Mike Cage said, after hearing about the letter of intent, that he thinks there’s a good chance Dunkin’ Donuts will open in Festus.
“I would say it’s an 80-percent chance right now,” he said. “Before, it was 50-50. I won’t believe it until I see the sign on the building.”
Wall Properties entered into an agreement with Festus in the spring of 2015 to attempt to develop the lot within 210 days, agreeing to pay the city $5,000 whether or not a developer was found. Wall Properties negotiated with Starbucks much of the rest of the year, but the company announced in the fall of 2015 that it would not develop the property and open a coffee shop there.
Later, the City Council gave Wall Properties a couple of extensions, and the broker began negotiations with Dunkin’ Donuts.
In spring 2015, the council rezoned the tract from B-4 to B-2 while Starbucks considered it for possible development. Both zoning categories allow for commercial uses, but B-2 zoning allows for commercial uses on smaller pieces of property than B-4 does.
Festus has owned the tract for several years, after the Missouri Department of Transportation reconfigured the Lee Avenue/Veterans Boulevard intersection and gave leftover property to the city.