Vandalia City Council in early January approved a conditional use permit to allow a warehouse facility on the 56.4-acre property located at that location. The city planning commission voted 3-0 in November to recommend approval of the permit.
The proposal included construction of the building with ancillary offices, 162 loading docks, 199 trailer spaces and 594 parking spaces.
The Port Authority’s more recent move creates a capital lease financing structure that will exempt Houston-based developer Pinchal from state and local sales taxes on materials purchased for construction — an estimated savings in this case of $1.66 million, according to Port Authority documents.
Though the deal has a ceiling of $40 million in lease revenue bonds, Port officials expect about $32 million to be used.
No end user or use has yet been publicly named for what is being called a “spec” project, said Joseph Geraghty, Port Authority executive director. Speculative construction projects have no immediately identified tenants.
But the project will be another warehouse/logistics facility near the Dayton International Airport, one that “fits with what we’ve been doing up there,” Geraghty said.
“It continues to be the theme around the development in the Northern part of our county,” he said.
One developer alone, Kansas City-based NorthPoint, is responsible for at least 10 big logistics project in Union or Dayton, in the area northeast of the airport.
Brad Evers, counsel for the Port Authority, said other developers nationwide are catching on to the activity in the Dayton region. “They’ve got something good there,” Evers said observers are saying.
Vandalia city spokesman Rich Hopkins said the city does not know who the building’s end user will be.
About the Author
