A company billed as the largest owner, operator and developer of industrial real estate in the nation plans to build a 1.8 million-square-foot distribution center in Union that will cost $90 million and employ more than 1,000 people.
“It’s a great opportunity for us here in Montgomery County, without question,” Steve Stanley, executive director of the Montgomery County Transportation Improvement District (TID) said. “It isn’t every monthly meeting that we get to do a project of this magnitude.”
The California-based company, ProLogis Logistics Services Inc. will lease the distribution center on 125 acres in the city of Union’s Global Logistics Park to a yet-to-be- identified company, according to documents obtained by the Dayton Daily News Monday from the TID.
ProLogis will commit to obtaining the property for construction once it has entered into a lease with its confidential client, according to the documents. The company declined to comment.
“We simply don’t comment on potential development projects that we’re working on,” said Atle Erlingsson, a spokesman for Prologis said.
Construction of the facility between Jackson Road and Old Springfield Road is expected to begin in mid-September and be completed by the end of 2014, said Stanley, provided all agreement are signed on schedule.
The city of Union, Montgomery County, the Dayton-Montgomery County Port Authority and the county’s TID will cooperate to finance project incentives, roadway enhancements and the extension of utility lines to the project site.
Portions of Dog Leg Road and Jackson Road will be improved north of U.S. 40 and a new roadway will connect them to Old Springfield Road. The estimated cost of that work is $11.5 million. The extension of water and sanitary sewer services is underway and the targeted completion date is August 2014.
“We are taking some risks here. The city of Union, Montgomery County, the Port Authority and the TID are willing to take that risk. Keep in mind we have been intending to make the land shovel ready for a long time,” Stanley said.
The Montgomery County Commission, today, will vote on an Intergovernmental Agreement for the financing and implementations of Logistics Park Access Road Project with the city of Union and Montgomery County TID.
The Union City Council was expected to vote on legislation Monday evening that would apply tax increment financing to the ProLogis site. The company would then make payments-in-lieu of taxes for 10 years on 75 percent of the increase in valuation of the site. Regular property taxes will be collected on the remaining 25 percent of the valuation increase, which goes to the Vandalia-Butler School District and other taxing authorities.
Montgomery County will guarantee financing for the public projects such as roadway design and construction, and the public utility extensions. The county commission has already made a $500,000 ED/GE grant to the city of Union to assist with making the site ready for development.
“This proposed project with ProLogis is a big project for Montgomery County and the region and we are all working collectively to try and bring this project to a good conclusion,” Erik Collins, director of Montgomery County’s Office of Community and Economic Development said.
Incentive financing of $700,000 is expected to be completed through Montgomery County’s Port Authority’s bond fund.
Dayton Daily News Reporter Jeremy Kelley contributed to this story.
Funding associated with the city of Union’s Global Logistics Park
Montgomery County ED/GE $500,000
Ohio Department of Transportation TID grants $500,000
State of Ohio grant (anticipated, not awarded) $50,000
City of Union TIF $11,700,000
The funding will pay for $11.5 million in roadway and utility costs, a $700,000 land incentive and a $1 million reimbursement to the city of Union.
Source: Montgomery County Transportation Improvement District