The company closed on its acquisition of the site, now called Fenton Logistics Park, in November 2014. It then invested $10 million in site improvements and began working on lining up the necessary local and state incentive packages. The St. Louis County Council of Tax Increment Financing recently approved funding for the project, and company officials say they anticipate that the state will soon approve supplemental tax increment financing assistance.

During the redevelopment, the builders plan to remove eight million square feet of asphalt, concrete slabs and parking lots. Furthermore, two miles of new streets will be added, and a new utilities infrastructure will be created. About 30 acres has already been cleared, Barnes says, and the rest will happen over a number of years as the proposals for various projects get finalized.

The ultimate plan will result in a $222 million, 2.1 million square foot business park that hosts a wide range of activities, including manufacturing, logistics, office, flex space, retail, restaurants and hotel space.

The architect for the building is M&H Architects. Paric is serving as the general contractor. KP expects to complete this first building by late summer 2017. Barnes expects the company will start another spec building in 2017, and perhaps one build-to-suit.

“This is the right time for this project and we look forward to now accelerating our work to redevelop this site, and ultimately creating thousands of sustained jobs and renewal of an area which once employed so many,” he says.

The industrial sector has become the hottest segment in commercial real estate. How will logistics companies keep up with the market forces of omnichannel commerce? When will new supply finally catch up with demand? Who's putting investment capital into industrial and what does the future hold? Join us at RealShare Industrial on November 16 and 17 for answers to these and other questions. Learn more.

ST. LOUIS—Although user demand intensified in recent years, causing the vacancy rate to plunge, there has also been a big hole in the center of the St. Louis industrial market for a long time. The former Chrysler Assembly Plant in Fenton, MO, has been vacant for years, but with a ceremonial tossing of dirt, last week KP Development began construction on a new $10 million spec building, the first of many that will eventually fill this space.

Representatives from the St. Louis-based developer joined St. Louis County Executive Steve Stenger, Fenton Mayor Mike Polizzi, other municipal officials and other guests to break ground on what will be a single story, 160,000 square foot facility suitable for office, warehouse and multifunction use.

“Since the downturn, there has not been much construction, except for build-to-suits, in the St. Louis area,” Terry Barnes, managing director of KP Development, tells GlobeSt.com. “Right after the recession, there was still a little nervousness, but confidence has returned.”