NorthPoint Development, the Kansas City-based firm that is soon to wrap work on its 150-acre Hazelwood Logistics Center near St. Louis Lambert International Airport, is now putting gears in motion to begin work on a new industrial park.
The city of Hazelwood’s City Council on Wednesday will consider a resolution to approve Chapter 100 incentives for the NorthPoint project. If approved, the city would commit to providing the bonds, though the bonds would be doled out on a building-by-building basis.
Hazelwood Economic Developer David Cox said the city could provide up to $200 million in Chapter 100 bonds to help finance the project, which for now is planned to include 10 warehouse facilities ranging in size from 250,000 square feet to more than 1 million square feet, depending on the scope of the tenant.
The project will be located on about 400 acres near Park 370 and the St. Louis Outlet Mall. Most of the site is made up of the Schroeder Sod Farm, located northeast of the St. Louis Outlet Mall. The Business Journal in August reported NorthPoint had the site under contract.
NorthPoint Vice President of Development Larry Lapinski did not return requests for comment.
Hazelwood has provided $109 million in Chapter 100 revenue bonds to help facilitate construction of NorthPoint’s Hazelwood Logistics Center. The incentives have helped NorthPoint build out some 2 million square feet of industrial space spread over eight buildings in less than three years. The last two buildings in the park are slated to be complete in early 2018.
According to several real estate sources, NorthPoint is marketing many of the Hazelwood Logistics Center building’s for sale.
Hazelwood has been a key submarket in St. Louis’ strong industrial performance of late.
More than 1 million square feet of new warehouse product has been delivered in that area during the first three quarters of 2017, according to research from Colliers International. Vacancy rates in the area, meanwhile, are among the lowest in the region.
Much of that success has been attributed to the incentive programs available for developers.
However, the incentives have also made it more difficult for industrial developers in other areas of St. Louis to attract potential tenants, as they don’t have the mechanisms to offer lower rates.
“With these (incentives), that gets some of the savings into the lease that NorthPoint can offer,” Cox previously told the Business Journal regarding incentives provided to NorthPoint for its Hazelwood Logistics Center project.