The 2009 closure of two Chrysler assembly plants in Fenton, Mo. took 6,000 jobs from the area economy. St. Louis developer-based KP Development is now however finalizing agreements with the city of Fenton and St. Louis to redevelop the site, bringing jobs to the area and revenue to Rockwood.

KP Development recently closed on the 300 acre property and has announced plans for the  “Fenton Logistic Park”.

“We anticipate multiple buildings throughout the 300 acres and to have more of a 21st century contemporary feel with office warehouse and light industrial users,” Scott Haley, KP director of development, said.

Haley said construction on the project will be completed in two to three phases over the next four to six years as tenants sign on and move in. He said the company hopes finalize agreements with St. Louis and Fenton and then begin phase one construction in 2015.

Haley said the company expects to attract 2,500 to 3,500 jobs to the area at the completion of the project.

Regional Impact

Doug Rassmussen, senior vice president of business development at the St. Louis Economic Development Partnership, said his company estimated a loss of 45,000 total area jobs and 15 billion dollars from the local economy when the Chrysler plant closed in 2009. While he said this new development won’t have as great of an impact, it will still be good for the region.

“Obviously there won’t be two car plants there so the impact on the region won’t be as great,” Rassmussen said, “but they are actively looking and working with several end users who frankly will be creating some jobs and building new buildings and investing some pretty big capital dollars.”

The Economic Development Partnership has been working with KP development to try to generate as many jobs as possible from the site, Rassmussen said. He said the first step going into construction will be to reshape old infrastructure of tenant needs and to complete any environmental remediation needed.

“Their plan is to create kind of a mixed-use park,” Rassmussen said. “They’re going to have some kind of retail uses closest to the highway and then as you move back toward the Merrimac River kind of in the back of the property, there’s going to be office and industrial space.”

Rassmussen said above-ground construction for the first tenants should begin within the next year.

Effect on Rockwood

As the site lies within RSD boundaries, its development will bring extra revenue to the district. Tim Rooney, Rockwood Chief Financial and Legislative Officer, said the benefit won’t be seen for a few years.

“It’s obviously good news that it’s going to develop,” Rooney said, “but there are significant issues that are between when we might receive additional revenues and now.”

Districts receive their money through property taxes, so Rooney said Rockwood won’t see money from the site until the year after the first structures are completed. The process could be further delayed if the developers are granted permission to use Tax Increment Financing (TIF) to cover costs of preparing the site for above-ground construction and environmental remediation. In that case, Rockwood wouldn’t receive revenue until these costs were paid off.

Rooney said the 2009 closure of the Chrysler plants caused a significant reduction in the property taxes of the region that was fortunately offset by the addition of the outlet malls in Chesterfield Valley.

“The Chrystler plant did affect us negatively, we were just fortunate to have this other even that occurred at the same time,” Rooney said. “So having that repurposed will definitely be positive for us in the future, but it’s going to be a while.”