April 21, 2014

Demdaco decides to stay put in North Kansas City

Danedri Thompson
dthompson@gardnernews.com

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.

Comments

  1. Recently I contacted Edgerton City Mgr. Dillner with respect to the viability of the Allen Group and where they were now located. Here is his reply:

    ****************************************

    The Allen Group has merely relocated to a different office in the same building. The entrance to their office is on the east side of the building rather than the south side.

    To answer your question, The Allen Group is still a viable developer and business partner for the City of Edgerton. They made a business decision to relocate, which has no bearing on their ability to perform under the Project Agreements.

    Please let me know if you have any other questions.

    David Dillner
    City of Edgerton

  2. Jerry L Kellogg Sr says:

    Thanks for the update, Judith, I’ve been asking around where they went. While The Allen Group may still be viable and partnering, I suspect they are now doing so in less expensive digs due to their heretofore lack of productivity in creating earth digs.

  3. The politicians always paint the rosy picture. In my opinion I still question the viability of the Allen Group considering their huge money probelms in Texas. My research shows Richard Allen lost a fortune on his warehouse development around the proposed intermodal development around Dallas where he had 8,000 acres on the line.

    I also do not trust BNSF since I remember quite clearly the town in California they promised the moon to on another intermodal project and after the town invested millions on promises, BNSF pulled out and left them high and dry. In my opinion, you never trust the thieves and the blackmailers and they are never good for a community in the long term and you would know that if you read many of the lawsuits and how they have operated in community after community across the land. I also never want to live in a community where the big boys own the town, lock, stock and barrel along with the worthless politicians such as in Vernon, California.

    Whether these jerks come or go in the future does not meet my comfort level and I so wish the politicians around 5 or 6 years ago were thinking of their people instead of the greenbacks. I know I have done everything I can possibly do to protect the people’s best interests but sometimes the people DO NOT LISTEN – just like the worthless politicians and then a very high price is paid by average citizens and very, very seldom are the big boys adversely affected although Richard Allen seems to have taken a big hit plus a few others that come to my mind since the lowlifes brought the people to their knees in many instances during the last few years due to the financial meltdown brought on by money and greed.

  4. I am new to this area but I have to say that this woman Judith is the most negative, disrespectful person that I have had the joy of not meeting. I would hate to be her friend or family member as I am sure that nothing they would say or do would be right. I believe in freedom of speech but not freedom to be disrespectful, arrogant or self righteousness. I would suggest that she talk a long look at herself before she judges others.

  5. To Sandy–

    You will reconsidered what you have said here where this rail yard comes–

    140 trains a day

    40 sets of tracks

    250 trucks an hour working up to 2500 trucks a day

    rush hour traffic is already very congested on I-35

    when you see all the pollution in the air

    when your water supply is moved from a natural water source to a man-made source from runoff from roofs, highway, driveways, air pollution (as water absorbs air pollution)

    your property taxes go up, up while your property value goes down, down

    Judith, keep us posted. People will wake up when the hell is here.

  6. correction–
    Granny says:
    January 6, 2011 at 4:38 am
    To Sandy–

    You will reconsidered what you have said here where this rail yard comes–

    140 trains a day

    40 sets of tracks

    250 trucks an hour working up to 2500 trucks an HOUR

    rush hour traffic is already very congested on I-35

    when you see all the pollution in the air

    when your water supply is moved from a natural water source to a man-made source from runoff from roofs, highway, driveways, air pollution (as water absorbs air pollution)

    your property taxes go up, up while your property value goes down, down

    WHEN YOU & YOUR FAMILY DEVELOP HEART & LUNG PROBLEMS

    Judith, keep us posted. People will wake up when the hell is here.

  7. Sorry, Sandy, that the message I carry is not to your liking, however, to myself I will be true. I base my opinions on years of research, experience and being involved in the running of government entities and basic paying attention and I LISTEN. I believe if you did so that you would have a startled look on your face and perhaps also out there trying to make a difference for the betterment of your fellow man, especially the middle class who are dropping out of the sky into poverty much like those birds who have been dropping dead out of the skies. I believe every day we get closer to having two classes in the U.S. – the poor and the rich.

    But again, Sandy, the choice is yours. If you think everything is hunky dory and you have no concern with how your government entities are operated and you are not adversely affected, then that is great, however, we will see what you have to say a few years down the road. Everyone is entitled to their opinion and yours is your right.

  8. Granny,

    Can you site your sources for the numbers that you spewed?

    40 tracks is a lot
    140 trains a day may be a record for anywhere
    The kicker: 2500 trucks /hr equals 1 truck every 41 seconds. That will be an impressive sight.

    How many trains a day thru town currently? How many trucks travel I-35 and 56 Hwy now?

    I’m really interested in your science regarding water. Don’t forget it all gets treated now and has for decades.

    At least Judy cites her sources.

  9. I believe the research was provided by the Chicken Little Center for Impending Doom

  10. Citizen for responsible growth says:

    Folks, everyone is absolutely entitled to his or her opinion, but can we at least be civil? Please?

  11. To Skeptic and Ecosto–

    The figures I quoted are from the rail road group plans when the Gardner City Council first welcomed them into our community over 6 years ago.

    Where were you 2 all knowing at that time? Did you go to the reception held at the Gardner City Hall?

    Sandy, welcome to the group of those of us that were duped into buying property in this community without the truth revealed on the real estate disclosure forms.

  12. Hmmmm, I have a feeling that Judith and Granny could be the same person.

  13. Quoting from “memory” stats from 6 years ago? Show me the data in 2010/2011 as your numbers are still quite amazing.

    Glad I am in a free country where if I hate Gardner and the area around it then I can move elsewhere. The Intermodal is coming folks, even though the Gardner Council tried to kill what the voters voted for. Now Edgerton gets any tax money from it and we still have roads and other issues to deal with.

    Judy you can link to the 1 article about intermodals or start your “evil Gardner politcal machine” rant now.

  14. Ryan–

    Still laughing–keep guessing.

    Skeptic–

    Will you buy my property? It is only 6 years old & valued as $25,000 less, going down every year. And, don’t slam me; I keep my property up; the property I sold 6 years ago sold for $47,000 more than what I paid for it.

    No one wants to buy or build here to live in the middle of the largest rail yard in the world. And, that is what this rail yard is advertised as “THE LARGEST RAIL YARD IN THE WORLD”.

  15. Ryan: I hate to tell you but your “feeling” is letting you down……so much for your informed and educated comments……………just the like the lies and hate you spread on the recall…………….exactly that: lies and hate.

  16. Hi, Judith!!!

    Ryan gave me the laugh for the day!!!

  17. Jerry L Kellogg Sr says:

    On January 6, 2011, City Administrator David Dillner posted on the City of Edgerton website the following statement in response to Demdaco’s decision to keep its warehouse operations in North Kansas City, Missouri:

    “While the City of Edgerton is disappointed with this announcement, we are still optimistic with respect to logistics-related development. The market for this type of economic development activity is extremely competitive. It would be very optimistic to assume that every deal of this nature and scope would locate in the City of Edgerton. The City understands that a more reasonable capture rate of 20% will result in the full development of the Logistics Park-KC development over the next ten years.

    BNSF Railway Company has made a decision to construction an intermodal facility in Edgerton and their contractors will break ground on this project later this year. The Allen Group of Kansas City will continue to seek out economic development deals that would be a good fit for the City’s future development plans. We believe that the conditions are ripe for the development of the logistics industry in Edgerton and southwest Johnson County. The City will continue to work with our development partners to promote Edgerton as the location of choice for warehousing and logistics-related development.”

  18. I have read so many typical Dillner PR statements the last 15 years or so, I can almost state verbatim what they are going to say before they say it. If only the people could get some “genuine” people into our governments we could perhaps be on the road to a better world. Where are our Ghandis, Martin Luther Kings, our Lincolns, our Churchills??? Do they even exist in today’s world – the “business friendly” world that is bankrupting citizens and throwing them into poverty faster than rabbits reproduce while the fat cats get fatter. The chase of the greenback continues via people who wear blinders to anything that gets in their way. Think Mr. Lindstrom who stood before his City Council recently and who was waived away………….think Judith who asked her school district a question about dropouts and was told she would have to pay $150 for the answer to the question……..think about citizens who wanted to have the right to vote on the 85% tax incentive the city wanted to give the Allen Group a few years ago and who were waived away………think about three long standing citizens who were elected into office as Council members and when they vote their conscience are recalled by hate and lies……….think about the concerned citizen who had begged the County Commissioners on more than one occasion to place safeguards into place to avoid the loss of tax revenue to the people and who was waived away resulting in the continuance of rubber stamp government leading once again to the loss of tax revenue for the people……..perhaps the people need to THINK before they go into that voting booth the next time and complete their ballot………………..

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