Cass Politics

Allen Edmonds

The U.S. General Services Administration last week selected CenterPoint Properties as the master developer of the National Nuclear Security Administration’s new complex at M-150 Highway and Botts Road.

The selection marked one of the final steps in the long-awaited process of actually beginning to build the facility which will bring approximately 2,100 jobs to Belton’s northern edge.

The process has been watched closely by Belton and Cass County officials, all of whom have been eagerly awaiting word that the plant is actually coming to the region’s northern fringe.

“I think it fits in real well with the intermodal facility, the Adesa Auto Auction and all the development that’s going on in that area,” said Belton mayor Jimmy Odom.

The city is in the midst of applying for an enhanced enterprise zone designation for a portion of the area with the Missouri Department of Economic Development, “and that’s going to be something that’s also going to help us draw businesses into our community. With the 5,000 jobs they’re looking at with the intermodal faciility and another 2,100 with this announcement – that just all ties in real well with what we’re trying to do in our area and I think it’s real good for our community.”

Cass County presiding commissioner Gary Mallory was equally thrilled with the news.

“Even if this isn’t happening in Cass County, I’ve always felt we would benefit by being on the periphery,” Mallory said.

“The greatest benefit to us will be ancillary businesses” that come with developments such as the intermodal facility and the NNSA plant, he said.

“I thought we would get the people moving here that work in these places as well as the potential jobs for people.”

He expects the area to benefit from an influx of residents, even though the plant is only moving a short distance from its previous location.

“I think over time we will,” he said.

“Today is a good time for people that are wanting to get into a house with the market the way it is – this may be the ideal time for them to decide to move closer to where they’re going to work.”

Finalization of the financial terms with Kansas City’s Planned Industrial Expansion Authority is the last step in the process.

CenterPoint has teamed with Kansas City-based Zimmer Real Estate Services as owner and developer of the 1.5 million square-foot development which will be located on a 186-acre site.

Joining the CenterPoint-Zimmer team are J.E. Dunn Construction Company and architecture firm HNTB, both also of Kansas City.

According to the GSA, the execution of the NNSA’s strategic mission will be enhanced by the new plant. It will be smaller and more flexible than the existing facility on Bannister Road in South Kansas City. The new facility will employ approximately 2,100 local workers and provide around 1,500 jobs during construction. The project will be a LEED Gold Rated “Green” campus.

“We understand the importance of retaining this major community asset in Kansas City and we pledge to develop a LEED Gold campus that will provide a safe, secure, flexible and productive work environment to serve as a national model of performance for the NNSA and the GSA,” said Michael Murphy, executive vice president of development at CenterPoint.

“The CenterPoint-Zimmer team is excited to be selected and we are looking forward to the next phase of this process.”

The newly formed venture, CenterPoint-Zimmer LLC, is beginning development activities immediately.

A critical next step in the process will be the finalization of the financial structure with the Planned Industrial Expansion Authority, which will technically own the facility and lease it to CenterPoint who, in turn, will sublease it to the GSA.

The NNSA has provided 120 days from the date of the selection announcement for the CenterPoint-Zimmer team to coordinate these activities with the PIEA and then to complete its funding of the project.

The CenterPoint-Zimmer proposal is contingent on the ability to successfully issue project bonds backed by the NNSA sublease.

To the extent the capital markets continue to cooperate, the CenterPoint-Zimmer team expects a final funding simultaneous with the completion of its definitive agreement with the PIEA and execution of lease documents with the GSA and NNSA.

CenterPoint is currently developing the 1,340-acre CenterPoint Intermodal Center industrial park immediately south of the NNSA plant site – an investment that will exceed $300 million.

This integrated intermodal-industrial park is anchored by the 370-acre Kansas City Southern Intermodal Center. It will feature up to five million square feet of facilities for manufacturing, warehousing and distribution.

“We are committed to Kansas City and, through our inland port development and infrastructure experience, have developed a deep understanding of the local market,” said Jim Cross, senior vice president of development at CenterPoint.

“Our team is confident that we have the construction, technical, and financial expertise to successfully execute a project of this scale and deliver a premier facility to the NNSA.”

Zimmer officials were also thrilled with the selection.

“We are delighted to be teaming with CenterPoint in this most important project, which will be one of the largest industrial development projects ever to occur in Kansas City, and which will retain a very important job base for our city,” said chairman Hugh J. Zimmer.

Actual construction is expected to last approximately two years. Groundbreaking could occur as early as late summer.