Dillons to close 23rd Street location, open one on KU’s west campus

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Dillons is planning to close its 23rd Street store and open a larger one at The Crossing At KU, the new mixed-use development in progress on west campus.

The Dillons currently at 1015 W. 23rd St. will relocate to the new store, which will be located northwest of 23rd and Iowa streets, about a mile away.

“Along with its current staff, Dillons plans to hire 150 additional associates and offer robust leadership opportunities for career advancement,” according to a news release from the company.

The new location will be about 30,000 square feet bigger. It will include Murray’s Cheese, Starbucks, pickup for online shopping and delivery, and a pharmacy with a drive-thru lane, according to the release.

The project is expected to break ground late this summer, and more details regarding the construction timeline will be announced in the future, according to the release.

In the meantime, the 23rd Street location “will remain open until the new store is constructed and ready for grand opening day,” Sheila Regehr, a spokesperson for Dillons, said via email.

Dillons will be the first major retailer at The Crossing, according to the release.

“The expanded store, as well as the new employment opportunities this project will bring, are welcome additions for the Lawrence community, and will serve as a springboard for ongoing economic development in the region,” Dan Martin, president of KU Endowment, said in the release. “The Crossing will provide a truly unique place to live, work, and play and Dillons will serve as an anchor to the experience.”

The initial phase of The Crossing at KU “will create the developable ready sites for roughly 500,000 square feet of new development at buildout, including approximately 400 proposed multifamily residential units, affordable housing sites, a grocery store, a hotel, over 50,000 square feet of retail and dining uses, and over 75,000 square feet of office and research space,” according to information provided to the Lawrence City Commission last year.

The redevelopment “converts exempt property into commercial property that will be subject to property taxes,” and commissioners in March 2023 approved a 20-year tax increment financing (TIF) district to capture 95% of eligible property taxes for reimbursement.

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