Panattoni Development Company, Inc., a California corporation, has requested that the city of St. Peters issue industrial revenue bonds in a principal amount of approximately $47 million, to provide funds for the costs of constructing an approximately 423,000-square-foot facility to be located on Lot 34 of the Premier 370 Business Park, and an approximately 366,600-square-foot facility to be located on Lot 35 of the Premier 370 Business Park.
The sites are on Premier Parkway across from Dayton Freight and the new Medline building. Saia is to the east.
According to David Fults, St. Peters communications coordinator, these buildings are being built as “spec” buildings. They appear to be designed for warehouse or distribution, with small office areas but could be used for office, transportation or manufacturing.
The Board of Aldermen determined that the two buildings would promote the economic well-being and industrial development of the city and the taxing districts encompassing the area of the buildings, and that the issuance of the bonds to pay the costs of construction will be in the public interest.
At their May 13 meeting, the aldermen voted 7-0 to approve a resolution expressing official intent to issue the bonds. Alderman Melissa Reimer (Ward 3) was absent/excused.
The bonds will be limited special revenue obligations, payable solely out of payments, revenues and receipts derived from the lease of the two buildings by the city to Panattoni. The bonds and the interest on them will not be a debt of the city or the state, and neither the city nor the state shall be liable for them.
With this resolution, the city only intends to provide a sales tax exemption on qualified building materials to be used in the construction of the project improvements. This is the same type of agreement used for previous spec buildings at 1000 Premier Parkway (now home to Grove Collaborative and RB) and 1001 Premier Parkway (now home to DMI).
Fults said that, at this time, the city does not know when construction will begin, or a target completion date.
The board will formalize the actual issuance of bonds with an ordinance, after terms and conditions and satisfactory indemnification are received by the city from all interested parties. Prior to the formal ordinance being passed, the approved resolution does authorize Panattoni to proceed with the purchase and construction of the land and buildings, including the entering of contracts and purchase orders and to advance funds as may be necessary. Then, if the bonds are issued, Panattoni may be reimbursed solely out of the proceeds of those bond sales only for expenditures paid or incurred in connection with the two buildings.
The city will provide a sales tax certificate for the purpose of enabling Panattoni to obtain sales tax exemption on all construction materials for the buildings, upon Panattoni’s agreement to fully indemnify and protect the city from any judgments or actions arising from the use of the certificate if the city does not issue the bonds for any reason.