The planned 521,080-square-foot Class A industrial/commercial facility will be built on 38 acres near the intersection of Dog Leg Road and Union Park Boulevard in Vandalia, near an existing Procter & Gamble distribution facility, according to Port Authority documents.
The project’s value is about at $27.6 million.
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The move creates a capital lease financing structure that will exempt Kansas City-based developer NorthPoint from state and local sales taxes on all materials purchased for the construction project — an estimated savings of $787,500, according to the Port Authority.
“That’s not insignificant by any means,” said Jerry Brunswick, the Port Authority’s president and executive director.
Nationwide, NorthPoint buildings house operations run by Amazon, Ford, General Motors, Staples and other companies.
No tenant for the new Vandalia building has been identified yet, but Brunswick said he expects an announcement of some kind in due course.
Construction will start in the fourth quarter this year and is expected to be complete by the fourth quarter a year from now.
The Port Authority will hold title to the project and will finance, construct and lease the project to partner Newco on a capital lease basis for at least five years.
Across the country, NorthPoint has been the developer of 15.6 million square feet of industrial space housing 46,500 current or expected jobs.