Members of the Edgerton City Council approved a resolution that established bond fees and a payment-in-lieu-of-taxes (PILOT) plan for a warehouse to be constructed on the northwest corner of 191st Street and Waverly Road.
The 326,650 square-foot warehouse will be leased to Demdaco, a gift importer. The company has agreed to lease the warehouse space in the intermodal logistics park for seven years with options to renew. The PILOT plan created a 10-year fee schedule that allows the project origination fee of $833,459 to be paid over time rather than upfront.
Council members asked who would be responsible for paying if Demdaco opted not to renew its lease.
Patrick Robinson, vice president for the developer of the intermodal logistics park, explained that should Demdaco not renew its lease, the developer, Edgerton Land Holdings Company, would make PILOT payments.
“Given the amount of money (Demdaco) is spending inside of the warehouse, it’s pretty likely they’ll take the renewal options they have,” Robinson told council members during a meeting July 11.
Robinson said Demdaco hopes to utilize the leased space offer logistics and importing services to others.
“I hope they’re really successful and need a couple million more square feet,” Robinson said.
The Demdaco building is one of three confirmed warehouses to be constructed in the Logistics Park Kansas City. The other two include a speculation warehouse and a warehouse for DeLong Company, a grain exporter.
The next Edgerton City Council meeting will be at 7 p.m. on July 25 at city hall.
Edgerton approves fee payment for warehouse