The Allen Group-Kansas is asking the city of Edgerton to re-zone more than 500 acres surrounding the BNSF intermodal site to develop its logistics hub. The company has requested that the acreage be rezoned from an Agricultural Zoning District to a Planned Unit Development Zoning District.
The Edgerton Planning Commission will host a public hearing to consider The Allen Group’s request at 7 p.m. on Nov. 7 at Edgerton City Hall.
According to David Dillner, the request and its potential approval will not affect the speed at which warehouses are built on the site.
“This is an administrative process that needs to occur,” Dillner said. “It doesn’t change anything other than the land use that will be allowed on that property. But we already knew the land use was going to be a logistics park.”
The logistics park is a separate entity from the BNSF intermodal, which must issue a notice to proceed before the end of the year to cash-in on $35 million worth of incentive from the state of Kansas.
If the Allen Group’s rezoning request is approved, Dillner said the property will continue to be taxed as agricultural until warehouses are built on the property.
“The taxes are determined based off the actual use,” he said. “It will continue to be taxed as agriculture until a building is actually constructed.”
But Dillner said construction on warehouses in the neighboring logistics hub could occur in the near future or 10 years from now. It all depends on when The Allen Group finds warehouse tenants. Demdaco, an importer of novelty gifts, is considering locating a 300,000-plus square foot warehouse in Edgerton. Approximately 16 acres on the logistics hub property have already been re-zoned to accommodate a potential Demdaco warehouse, but the company has yet to announce a decision on a location for its warehouse.
Dillner said he’d like to see warehouse construction occur as soon as possible.
“I’d like to tell you sooner rather than later, but the decision to build a building is based solely on the private sector making a decision,” Dillner said.
“I would like to say (construction) starts tomorrow, but until a company says, we’d like to build a building and requests a permit, I don’t know.”
Edgerton officials anticipate the logistics hub will be completed 10 years from when construction begins.
“So let’s say the logistics park started building next year,” Dillner said. “We’d be looking at completion in 2020. But that’s all dependent on the economy and the market for warehousing. It could take longer or less than that depending on market conditions.”