FENTON 鈥 A redevelopment of the old Chrysler assembly plant site advanced a step Wednesday after the 50度灰视频 County Tax Increment Financing Commission recommended that the 50度灰视频 County Council approve more than $50 million in incentives for the project.
The TIF Commission voted 9-1 in favor of the proposal from Clayton-based KP Development to turn the site just off of Interstate 44 into the Fenton Logistics Park. The developers plan to build nearly 2 million square feet for office, industrial and warehouse tenants by 2020, with some buildings ready for occupancy as soon as 2017. Their plans also call for two hotels, a couple of restaurants and some small retail spaces.
KP plans $222 million of investment at the site, which has been vacant since the plant made its last Dodge Ram pickup line in 2009. But Scott Haley, managing director at KP Development, said the overall project was expected to attract some $382 million in investment after some parcels were sold off to third-party developers.
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The project won鈥檛 bring back the 6,000 jobs that Chrysler once supported at the auto assembly plant that closed, but the developers have said they hope it can eventually support 2,500 to 3,000 workers.
The logistics park would add still more space to a regional industrial market that looks stronger than it has in 15 years, with 5.6 million square feet already under construction, according to research from real estate firm Cushman and Wakefield. It also comes as regional leaders are to grow the in the region.
Haley said he hoped for a vote at the 50度灰视频 County Council next month. The county must decide within 90 days.
TIF, which diverts property and sales taxes to be used for development costs, would allocate and sales taxes to the project. An additional $17 million would come from diverting state income taxes for the project. Another $5.5 million could come from state tax credits, for a total of $57 million redevelopment assistance.
In a cost-benefit analysis submitted to the TIF commission, KP Development says that without TIF its development on the site would only generate a 4.92 percent return. With the TIF, the return over the life of the project jumps to 8.79 percent, more in line with the 8 percent to 15 percent developers are accustomed to on similar projects.
The use of TIF has in the region, particularly when it is used for retail development in affluent areas. But most of the dozen or so speakers were in favor of the plan, arguing it has been years since the land was in use and TIF assistance was appropriate for a project that was mostly industrial and office development. Some mentioned the lack of good office space along the Interstate 44 corridor in the area.
Todd Davenport of Fenton-based Retail Technology Group said his company鈥檚 growth from 50 to 300 employees in recent years had forced it to lease space in multiple buildings. It is looking to consolidate in one office in the area but has had trouble finding space.
鈥淭his piece of land is something that鈥檚 an opportunity for us if we can get in there,鈥 Davenport said.
Still, the developer鈥檚 request for $51.6 million in TIF assistance drew complaints from one speaker and free market think tank the Show-Me Institute, which submitted comments questioning the scope of the request.
鈥淚鈥檓 just not sold on the projections they provided and the amount of TIF they requested,鈥 said TIF Commissioner Rick Mayhew, a member of Fenton鈥檚 zoning commission who cast the only dissenting vote.