Distribution park proposed to city

Southwest Olathe has become a haven for distribution centers.

Why? Just ask Dan Jensen, a principal with Kessinger Hunter & Co. L.C., which is constructing a 600,000-square-foot speculative warehouse at 167th Street and Lone Elm Road. Jensen wants to build a 2.5-million-square-foot distribution park on 200 acres west of Old 56 Highway between 151st and 156th Streets. The proposal was presented to the City Council on Tuesday.

Jensen said Monday that with properly zoned land, infrastructure in place, established distribution centers and the development of the Interstate 35 and Lone Elm Road interchange (which began in early May), the area was “groomed” for big-box distribution.

“Between us, PacSun, Tyson and Systems Material Handling, we’re getting some synergy there...,” he said. “We believe these big buildings are going to continue to be in demand, and we’re going to try and continue to fill that demand.”

Jensen’s spec warehouse, which he said would be completed in November, will add to the 1.1 million square feet of industrial space already occupied by the distribution centers he mentioned.

“Dan’s group is taking a leading role in the market,” said Tim Cowden, senior vice president for business development at the Kansas City Area Development Council. “Obviously he’s bullish on the future for logistics-related development in the Kansas City area, so he’s putting his money where his belief is.”

The first phase of Jensen’s new project would begin with another 600,000-square-foot spec warehouse, which Jensen said wouldn’t begin until after the first spec warehouse is leased to avoid competition between the buildings.

Councilmembers will consider a $119.3 million industrial revenue bond request, which includes a 10-year 50 percent tax abatement, at a later council meeting.

Jensen has requested $28.5 million in IRBs to buy the first 40 acres to construct the second spec warehouse.