WENTZVILLE • A developer is proposing a 1.3-million-square-foot warehouse and subassembly facility tied to the city’s General Motors plant, city officials say.
Officials said that about 800 jobs could be created at the facility, which may start operations as soon as December. The overall project, including road and other improvements, would cost more than $50 million.
The city is currently trying to work out a tax incentive agreement with the developer, NorthPoint Development LLC of suburban Kansas City.
“We’re still in the negotiation phase,” said David Gipson, assistant city administrator.
NorthPoint officials could not be reached for comment. A Detroit News story last year reported the developer was building supplier parks near GM assembly plants in Kansas City, Kan., and Spring Hill, Tenn., with plans to construct more.
Tentative plans call for much of the facility to handle assembly of parts that would then be taken to the nearby GM plant for final assembly. The remainder of the facility could be marketed to other businesses, city officials said.
Dan Lang, Wentzville’s economic development director, said the developer has yet to reach final agreement with GM so city officials don’t know what types of parts would be assembled at the facility.
He offered a theoretical example, however. “You might have a grill for a vehicle that comes in from one location and headlights from another location that are put on the grill” at the new building, Lang said.
The developer also is asking the city to annex the 130-acre site, at Highways 61 and A, which is now in an unincorporated area.
On Wednesday night, Wentzville aldermen will vote on authorizing the city administration to work out a plan to issue city-sponsored industrial revenue bonds to help finance construction.
However, city officials said other incentives also could be in the mix such as property tax abatement for a yet-to-be-determined time period.
In addition to the facility now under consideration, Lang said, the developer hopes to eventually add other buildings at the site. The total capital investment could reach between $120 million and $250 million, a city document says.
The proposed facility would be the latest ripple effect of increased production at the GM plant, which now employs about 3,700 people.