Del City will soon have a little more interstate frontage property.
The city plans to demolish the former Fantasy Island strip club, 3220 Tinker Diagonal, and an old Philips 66 gas station, 3140 Tinker Diagonal, as part of a redevelopment project near I-40 and Scott Street.
City council members Monday night awarded contracts to raze the properties. The demolitions projects will cost a total of $86,000. The work should begin within the next three weeks, according to Mayor Brian Linley.
“We’ll demo Fantasy Island within the next couple weeks and then the Philips 66 after that,” Linley said. “This is a good start to moving this town forward in the right way.”
Midwest Wrecking was awarded the contract to demolish the gas station. The $47,360 contract includes demolishing the gas station and car wash and removing underground tanks. M&M Wrecking will demolish the former Fantasy Island at a cost of $39,390.
Del City recently acquired both properties through eminent domain. The city paid $434,700 for the Fantasy Island building and $464,800 for the gas station. The property will be part of a larger mixed retail development planned near I-40 and Scott Street.
City leaders have been working to transform the blighted area into a commercial development that will generate sales tax revenue and create jobs for the community. The city is working with an unnamed developer who will buy and develop the mixed-use commercial center. Several national and regional companies have shown interest in the property, according to City Manager Mark Edwards.
The city bought the former Eagle Point apartment complex, 759 S. Scott Street, and demolished the buildings. The condemned property had been a popular spot for vagrants. One of the buildings caught fire a few years ago. A homeless person died of smoke inhalation in the blaze.
Fantasy Island has also been a scourge on the community for years. City leaders say the property was never licensed for adult entertainment and become a hub for illicit activity and crime. The strip club was declared a public nuisance and closed by the city in September 2015.
“That has been an eyesore for the community for many years and this is a step in the right direction to bringing some retail to that highway corridor,” Linley said.
Edwards said the city offered to buy Fantasy Island and the gas station late last year. After the parties couldn’t reach an agreement, the city pursued legal action by eminent domain. During the eminent domain process, three county commissioners evaluated the properties and determined a fair price. The two property owners accepted the evaluations in June.