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Ora Reynolds and Mike Bell in front of HMBC Logisitcs I

Auto, e-commerce demand fuel Hunt Midwest Business Center expansion
Rob Roberts – Kansas City Business Journal

By the time Hunt Midwest completes HMBC Logistics I next month, the new 200,000-square-foot Class A industrial building in the Hunt Midwest Business Center may well be leased up, said Ora Reynolds, the Kansas City-based development firm’s CEO.

Hunt Midwest is currently in the final stages of negotiations with three tenants that would fill the building, which was started last year on a speculative basis, meaning before any tenants were signed.

Once that happens, Reynolds said, Hunt Midwest will start on one of the other two 200,000-square-foot specs planned for adjacent sites in the surface business park located near Parvin Road and Interstate 435 in Clay County — just a mile and a half away from the Ford Kansas City Assembly Plant and right above the world’s largest underground business park, Hunt Midwest’s SubTropolis.

According to Reynolds, the trio of 200,000-square-feet buildings is designed to fill a niche in the market for tenants needing 40,000 to 50,000 square feet of Class A industrial space with features such as 32-foot clear height, multiple dock doors (HMBC Logistics I’s current 20 doors can be tripled to meet tenant demand) and 60-foot deep bays that allow indoor staging for 53-foot trailers. Read more…

States competing for data centers extend $1.5B in tax breaks
David Lieb – Associated Press

The former limestone mine seemed perfect for a large computer data center. The air was cool. The rock walls provided a defense against natural disasters. And the tunnels bored into a Kansas City hillside had access to abundant electricity and fiber-optic cables.

But the mine lacked something important: tax breaks. Without them, several companies chose instead to locate their data centers in neighboring Kansas. At least one major project opted for North Carolina.

“There were people who wouldn’t even come and look,” said Ora Reynolds, president and chief executive of Hunt Midwest Enterprises Inc., which has been marketing its SubTropolis caves. Financial incentives, she learned, were “absolutely crucial.”

Similar competitions for business are playing out across the country as states increasingly offer lucrative tax breaks to attract the data centers that function as the brains of the Internet. An Associated Press analysis of state revenue and economic-development records shows that government officials extended nearly $1.5 billion in tax incentives to hundreds of data-center projects nationwide during the past decade.

The actual cost to taxpayers is probably much higher because some states refused to disclose the amount of taxes they waived, citing confidentiality laws. In many cases, cities and counties sweetened the incentives by forgiving millions more in local taxes.

The benefits are debatable. Although they cost hundreds of millions of dollars to build and equip, the centers employ relatively few workers. That means they produce little in the way of new income taxes but could provide a surge in property and sales taxes — if governments don’t waive those taxes, which many do.

Some officials doubt the tax breaks are worth it because they typically benefit a single community while depriving the state budget of money that might otherwise help schools, lower the cost of college tuition or pay for roads and other infrastructure. Go to AP.org for more…

Hunt Midwest announces 126-acre industrial park expansion
Rob Roberts – Kansas City Business Journal

Responding to growing demand in the automotive supply, e-commerce and data center markets, Hunt Midwest has completed a 126-acre surface business park expansion.

The Hunt Midwest Business Center now can accommodate as much as 2 million square feet of new Class A warehouse and distribution space, the firm said in a release.

“HMBC is located in Clay County just south of Ford’s Claycomo Assembly Plant and adjacent to both the Norfolk Southern intermodal facility and Kansas City’s FedEx Ground hub,” Hunt Midwest CEO Ora Reynolds said in the release. “This makes HMBC an ideal location for e-commerce fulfillment centers, automotive suppliers and up-fitters.

“With direct access to I-435, companies locating in HMBC can ship to 85 percent of the United States within two days. The availability of multiple fiber carriers and diverse sources of power also make this a great location for data centers.”

Buildings planned in the business park’s new phase are designed for single-tenant and multitenant users and range in size from 200,000 to 875,000 square feet. One of the buildings, including 200,000 square feet, will be built on a speculative basis, meaning before tenants are lined up.

“With buildings divisible to as small as 50,000 square feet, Hunt Midwest Business Center will serve an unmet tenant demand in the industrial market,” Reynolds said in the release, adding that Hunt Midwest will offer tenants land purchase, build-to-suit and lease options. Go to KCBJ.com for more…

Ora Reynolds

Power 100: Ora Reynolds – President & CEO, Hunt Midwest
Kansas City Business Journal

Ora Reynolds and Hunt Midwest have been on a roll. Ford Motor Co.’s billion-dollar investment in its Kansas City Assembly Plant has also helped fill “Automotive Alley” at Hunt Midwest’s Subtropolis. Meanwhile, the company’s residential operation has benefited from housing’s bounce-back and the growing need for senior housing.

Reynolds has worked to build up her executive team after a record 2014. That should be a help to an executive who already put in huge efforts with area development organizations and (successfully) lobbying Missouri to offer incentives for data centers. Go to KCBJ.com for more…