7 minute read
Looking to the Future
The EDC envisions new growth on the Gabriel property.
ARTICLE BY Rachel Murphy
PHOTOS BY Sarah Reeves & Kevin Anderson
Sometimes a piece of land has potential only a few can see. That was the case for Sara Ritter,
President of the De Soto Chamber of Commerce and Economic Development Council (EDC). Her vision? Acquiring a 300-acre property that has all the makings of a perfect development plot. Her first step was to speak to Arlen Gabriel, the owner of the property to find out if he would ever be interested in selling it. She had talked with Arlen about the potential of the property if he didn’t want to keep the land available to farm in the future. As the son of a life-long farmer, Arlen needed to think over the options for the land that would make the most sense for him. Lucky for Sara, Arlen is also a very forward-thinking individual and his love for De Soto and its potential helped him make this generation defining decision. After around a year of these discussions, Arlen agreed to a purchase option with the Chamber of Commerce to move forward looking for a developer that would be a great partner and help develop the land with the right vision. Ritter says the land offers a unique opportunity for developers.
“The Gabriel property was a very attractive piece of land—it was under one owner, it wasn’t listed for sale, and it had two interchanges along its boundaries, making it quite attractive for companies that need access for truck traffic,” Ritter says.
The one drawback? Infrastructure. Over the last 10 years, the De Soto EDC submitted the property to several companies looking for space; it was often a finalist, but because the property lacked proper zoning and infrastructure, companies went elsewhere.
—Sara Ritter
City administrator Mike Brungardt says being turned down over these issues spurred the EDC to find a more solid plan for the space and a partner.
“We found ourselves on the shortlist for really attractive projects—projects that were generally larger scale with hundreds of thousands of square feet of buildings and thousands of jobs, millions in investment. But we always fell short because we didn’t have a concrete plan in place,” he says.
A Partnership
The EDC and the De Soto Chamber of Commerce had to find the right developer with a vision for the property and the capacity to match what the City Council and the Chamber envisioned. After considering several contenders, the EDC and chamber selected Flint Development.
“They had a portfolio of larger-scale industrial warehouse distribution- and production-type facilities throughout the country,” Brungardt says. “We knew it would be a good product.”
Mark Long, president and CEO of Newmark Zimmer, says that Kansas City is one of the ideal places for industrial development due to its large tracts of flat land, excellent labor density, and proximity to highway and railroad infrastructure, making transportation more cost-effective. He’s working with Hunter Harris, CEO of Flint Development, to develop the land.
While Kansas City may have available land, the currently available warehouse space has been eclipsed by demand for fast turnaround shipping by online retailers.
“You really have to make many variables come together to make sense economically,” Long says. “You have to deliver a build at the cost that allows the tenant to afford not only the site and infrastructure but the maintenance, taxes, and insurance. The old stock of buildings just isn’t cutting it.”
The Plan
Once the decision was made, it was time to put the wheels in motion. The first step was to annex and rezone the Gabriel property for industrial use, which was accomplished by the City Council and Planning Commission in January of 2022, and the group rezoned the land in February 2022. By March, the agreement with Flint was solidified, which includes expanding infrastructure that is the next priority for the Flint Development team.
The agreement does more than establish a partnership between the City and Flint – it provides an 85% tax abatement and obligates the City to extend sewer lines and possibly future water service to the property. These improvements will be paid for by a minimum water and sewer usage agreement between Flint and the City. Flint, in return, will reconstruct Edgerton Road, improve the intersections at 103rd Street and Edgerton and Eveningstar and 103rd Street, and either attract a commercial client to build a building or construct a spec building of at least 500,000 square feet within the next two years.
Ideally, Brungardt says, the property will attract a production facility rather than a warehouse facility. He says that production facilities tend to produce higher-paying jobs, attracting more people to the area. Truck traffic also tends to be lower, resulting in lower maintenance costs on roads and parking lots.
Even if the area does end up as a warehouse distribution center, Brungardt says he expects the project to create thousands of jobs that will be attractive to workers around the area.
Long agrees. The plan for the development leverages Kansas City’s advantageous position in the country—85% of the country can be reached within a two-day drive, making the area ideal for distribution. Flint Development has used that location to its advantage, developing more than 45 million square feet of industrial space since 2012.
For the newly minted Flint Property, Flint Development hopes to create a variety of opportunities, including building to suit, a mega-site for a single company, or leased space for incoming companies.
The Timeline
With annexation and rezoning completed, and infrastructure on the way, Brungardt and Long say they are eager to get started. The city will be extending utilities to the site by the end of 2023, coinciding with pad sites. Brungardt says Flint expects to begin construction on a spec building in the next 12-24 months.
Ritter says this is also a turning point for the EDC.
“This is the first time in our history where we were aggressive and took out a land option on a parcel that we could then market to developers to then, in turn, develop the property for its best use,” she says. “We firmly believe that this critical economic development move put De Soto in a position to attract major businesses with high-paying jobs.”
Flint Development and the De Soto EDC continue to work to create an epicenter of growth and opportunity for De Soto, creating jobs and cementing the area’s reputation as a labor center in a rapidly evolving world.
The EDC: Working Hand in Hand to Help De Soto Grow
Building business is a cooperative affair, at least that’s what the board members of the De Soto Economic Development Council believe. Although it was once a private business organization, the council was absorbed by the De Soto Chamber of Commerce in 2002, creating more significant opportunities for economic change.
The EDC now operates as a development agency under the De Soto Chamber of Commerce, much like other organizations in Johnson County. A restructuring in 2019 created a more robust and staffed organization to provide the power needed to spark real development. At the same time, the council added an advisory committee that identifies strategic targets, reviews current projects, and keeps an eye on the future.
A quarterly membership update keeps members abreast of all current projects and invites input to guide their progress. Connect with the De Soto EDC by visiting www.DeSotoKS.org.