Demdaco, a Lenexa-based gift importer, will not be re-locating to Edgerton in the immediate future.
The company renewed a lease for warehouse space in North Kansas City as the ball was dropping on 2010. Demdaco, which primarily imports figurines for Kansas City-based Hallmark, was seeking development space to build a 312,000 square foot warehouse in the metro area, and a 16-acre site in the KC Logistics Hub, to be developed by The Allen Group, in Edgerton was being considered.
Kevin Wilkinson, president of NAI Capital Realty, represented the corporation in its real estate hunt. He would not say whether Demdaco would consider its search for a development site in the future, whether Edgerton would be considered, or for how long the company agreed to re-lease a 439,493 square-foot warehouse in North Kansas City’s Paseo Industrial District.
Edgerton officials re-zoned 16 acres of land from agricultural to business logistics zoning, secured County Assistance Road System (CARS) funding from the county for improvements to Waverly Road and formed agreements with the county to review building plans and conduct code inspections in anticipation of Demdaco selecting a site about 2,000 feet south U.S. 56 Highway on Waverly Road.
Demdaco’s decision to stay put won’t change Edgerton’s plans, according to David Dillner, Edgerton City Administrator.
“The Allen Group is still actively securing development deals, and (the city) is not obligated to publicly put down infrastructure until square footage is secured,” Dillner said. “For all intents and purposes, (the decision) doesn’t really change anything for us.”
It will, however, likely push Waverly Road improvements into the future. Dillner said $800,000 in CARS funding for the road improvements was tied to Demdaco relocating to Edgerton.
“It is the city’s intention to use CARS funds for Waverly, but if there’s not a project locating there in 2011, the city will not have those funds available,” Dillner said.
Although Demdaco’s warehouse will stay in North Kansas City, Dillner said the Allen Group is still seeking tenants for the KC Logistics Hub in Edgerton.
The warehousing district will serve the BNSF intermodal facility.
BNSF named contractors and issued a notice to proceed on the intermodal portion of the logisitics hub project in October.
In an interview late last summer, Dillner said the notice secures a $35 million tax incentive from the state of Kansas for BNSF, but it doesn’t require any immediate action from the city of Edgerton.
Official infrastructure upgrades related to the project will not begin until BNSF makes a $1.8 million contribution towards the project to the city. City officials expect the contribution will be made sometime between now and March 2011.