A California industrial real estate developer plans to close next week on the purchase of land for a $90 million distribution center in Union that will employ more than 1,000 people, county officials said Thursday.
Prologis Inc. is expected to close the site acquisition deal by Sept. 19, said Steve Stanley, executive director of the Montgomery County Transportation Improvement District (TID), at the agency’s monthly board meeting.
“It is a significant step because that really then sets our overall agreement in concrete,” Stanley said.
Prologis, the nation’s largest owner, operator and developer of industrial real estate, plans to build the 1.8 million-square-foot distribution center on 125 acres in Union’s Global Logistics Park and lease it to an undisclosed client. The client plans to occupy the facility by the end of 2014, Stanley said.
The Dayton region has “tremendous growth potential” for the logistics and distribution sector, according to the results of a multicounty study presented Thursday by officials from the St. Onge Co., a Pennsylvania-based supply chain strategy and logistics consulting firm.
At Thursday’s meeting the TID board approved contracts for the completion of roadway improvements and utility installation that are needed to move the Prologis project forward.
Stanley said the total cost of the public infrastructure work has increased to $13.2 million from the previous estimate of $11.7 million because of higher than anticipated utility costs.
The city of Union, Montgomery County, the Dayton-Montgomery County Port Authority and the TID are cooperating to finance project incentives, roadway enhancements and the extension of utility lines to the project site.
The TID board on Thursday also approved an agreement authorizing the Port Authority to borrow funds from the Ohio State Infrastructure Bank to cover the unfunded portion of those costs, because of state legal limitations on the TID’s ability to borrow money.
Montgomery County will guarantee financing for the public projects. The county commission already has made a $500,000 ED/GE grant to the city of Union to assist with making the site ready for development.
Site preparation and building construction are expected to start almost immediately after the property closing, Stanley said. Water and sanitary sewer services will be installed by the end of next week to allow Prologis to pour concrete and control dust at the site, he said.
The concrete slab for the facility will cover about 43 acres. Prologis plans to build the foundation, erect the walls and roof, and then pour the concrete slab internally over 52 consecutive days this winter, Stanley said.