Last month the commission selected North Park Partners as the front-runner for the redevelopment. North Park, a partnership comprising developers TRiSTAR Business Communities LLC, McEagle Properties LLC and Clayco Construction Co., beat out other local developers that had submitted proposals for the project.

Dooley said North Park has not submitted final plans for the project, which is scheduled to begin in early 2005. The idea, though, is that North Park will fine-tune the plan it submitted to the commission to create a park with a mix of office and light industrial development.

Larry Chapman, a partner at North Park, said the partnership is in the early stages of negotiating and is figuring out the final design, costs and financing of the big project. He declined to give estimates on costs for the project, but said the financing would come from many sources that might include a mix of private debt equity financing and public funding through bond issues.

Chapman said he is optimistic that the Airport Area Redevelopment Intergovernmental Commission will approve North Park's final plan.

"I would imagine this spring we will have gone through all the negotiations," Chapman said.

The 600-acre property proposed for development is currently designated a state Enterprise Zone and a federal historically underutilized business (HUB). The property, which is the largest area of land not in a flood plain available for development in St. Louis County, was a residential community that the city of St. Louis bought and razed to create space for the airport's noise zone in the 1980s.

Dooley said other significant projects on the drawing board for St. Louis County next year include Pinnacle Entertainment's $300 million proposal for a mixed-use gaming and retail development in south St. Louis County. The Missouri Gaming Commission approved Pinnacle's proposals in September.

The county government also will continue to promote the county as a hub of the life sciences industry, he said.

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The incubator, on Plymouth Avenue in Wellston, provides 10,000 square feet of office and warehouse space for small businesses. It joins the county's existing incubators in Lemay, Chesterfield and in Midtown.

The newest incubator is built on the site of the former Wagner Electric Co., which had been contaminated with PCBs, lead and arsenic. The county used about $900,000 in federal and state funds to clean up the site, which also includes the Metropolitan Education and Training Center. Additional federal, state and local public funds and private funds helped build the new incubator.

"This incubator is part of St. Louis County's comprehensive effort to rebuild the city of Wellston," said Charlie Dooley, county executive, in a statement. "Environmental remediation, new businesses, job training, job creation, new housing, parks, streets and bridges are bringing this municipality back and making it a strong player in the economy of St. Louis County."

The first companies to move into the new incubator include:

• GSM Development, which provides products and services to the utilities industry;
• BRK Electrical Contractors
• Bloomfield Nutrition, which sells nutritional supplements online.

© 2004 American City Business Journals Inc.

KV will add workers if it gets tax break
By Eric Heisler of the St. Louis Post-Dispatch

KV Pharmaceutical Co. plans to invest $130 million and hire 300 more workers at three area operations if the St. Louis County Council agrees to a package of tax incentives next week, county officials said Thursday. KV, based in Brentwood, produces and markets various drugs.

The company, with about $280 million in sales last year, employs 1,000 workers. Its operations in Bridgeton, Maryland Heights and Earth City would expand under a proposed agreement with St. Louis County. As a result, KV would add 300 jobs paying an average of $60,000 a year, county officials said.

For its investment, KV would get a tax break worth up to $15 million over the next 10 years, or roughly half the property taxes the company otherwise would pay on the expansions.

Denny Coleman, president of the St. Louis County Economic Council, said the incentives ensure that the St. Louis area can hold on to a company in a highly sought-after industry. “This adds to the momentum the entire region has gained in life sciences,” he said. “These are companies that are being heavily recruited to other states and countries, and we have to be competitive to make sure we keep them here and keep them growing.”

Before reaching the tentative agreement with St. Louis County, KV had considered cutting area jobs and outsourcing the work overseas, county officials said.

KV has grown quickly over the last decade from a firm with just 300 area employees. Once a contract manufacturer for larger drug companies, it now makes its own brands. KV did not return phone calls seeking comment Thursday. But Steve Anderson, vice president of the economic council who worked on the deal, said the expansion was expected to take place within six months. At least in part, the move will accommodate the launch of new products, he said. “I can tell you this: They wouldn’t be doing the investment if it wasn’t for” the incentives, Anderson said. “Frankly, KV could easily outsource some of their work (that’s done) here.” The new hires will be mostly scientists and researchers, Anderson said.

Since 2000, St. Louis County has offered a handful of companies tax breaks to locate or expand in the county, including Edward Jones and DST Systems Inc., which opened a $50 million data center in Bridgeton last year. The St. Louis area is one of many regions nationwide that have placed a priority on becoming a hub for life sciences companies. The news of KV’s expansion comes just five months after Pfizer Inc., another pharmaceutical firm, announced it would open a $100 million research facility in Chesterfield.

Republished with the permission of the St. Louis Post-Dispatch
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St. Louis County seeks to foster business growth
By Eric Heisler of the St. Louis Post-Dispatch

St. Louis County has shelved a plan to build a fifth business incubator in favor of opening a center to promote small-business growth.

The county had announced in April 2003 that it would open an incubator in the mid-county area, using a $1.9 million federal grant secured by Rep. Richard Gephardt, D-St. Louis County.

The county operates three incubators that house startup businesses and help them to grow into larger, self-sufficient firms. A fourth incubator is about to open in Wellston. But county officials said recently that they have changed their minds about a fifth incubator and that they’ll use the grant money to establish the Center for Business Growth in Clayton. “We felt that we could reach more people with the same amount of money,” said Denny Coleman, president of the St. Louis County Economic Council. “This way, we can provide services to far more companies than we’d be able to serve within the walls of an incubator.”

At the time of last year’s announcement, county officials said that the St. Louis Enterprise Centers program had become popular and that more space was needed. Incubators in Chesterfield, Lemay and midtown St. Louis house 10 to 15 small companies each. There, the businesses can take advantage of reduced rental fees, shared facilities and access to mentors. The incubator in Wellston is expected to open this year.

Funding for the fifth incubator was scheduled to come through a grant from the Small Business Administration, but the Center for Business Growth will be “like an incubator without walls,” said Donna Heckler, a co-director for the program. “We recognized that there were so many businesses out there that could use the assistance,” she said, “and we wondered—couldn’t we expand this to serve more businesses?”

The center will focus on services such as education and mentoring for businesses with at least five employees, mainly firms larger than those in the incubators. As such, the center will address a critical stage of a company’s life cycle that few St. Louis-area programs address, Coleman said. “We don’t want to focus on startup businesses. We want to focus on the ones who are in the stage of growing,” said Bruce Hoskins, the center’s other co-director.

The center plans to sponsor a speaker series as well as provide smaller businesses with resources from larger firms and universities in the St. Louis area. Also, the center will set up networking events and study issues that concern smaller companies, such as health care. It’s expected to open in November.

The federal money will keep the center afloat for the first four years or so, Coleman said. County officials are studying the issue of how to pay for it going forward.

Republished with the permission of the St. Louis Post-Dispatch
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The World Trade Center St. Louis has recognized four local companies and organizations for their leadership and success in international areas.

Emerson received the center’s Global Leadership Award for being a world-class company with world-class leadership and continuing global growth, the center said. The Solae Co., which develops and manufactures soy products, received the Growing Global Award for its commitments to research, technology and high-quality management.

The World Trade Center recognized Everything’s Possible LLC with the Global Entrepreneurial Award for its growth and entrepreneurial spirit. The organization provides market research, product sourcing, travel planning, staffing, recruiting and translation services in China.

Finally, the Saint Louis Zoo received the Global Ambassador Award for creating its WildCare Institute, a conservation initiative that puts zoo scientists and resources in 12 troubled habitats worldwide.

County Obtains $1.9 Million Grant for Incubator Program
By Rick Desloge

Startup businesses in St. Louis and St. Louis County can choose from among a half-dozen business incubators. But where does a small business that’s outgrown the incubator turn?

The St. Louis County Economic Council plans to address that question with a new Center for Business Growth it expects to unveil in late October or early November. The new center will have a physical presence on the 10th floor of the World Trade Center building in Clayton, but also will operate as a virtual incubator for companies that are beyond the startup phase, said Bruce Hoskins, an executive director of the new center.

"Many of these later-stage businesses need the same kinds of support as the incubator companies, because they are out there on their own and don’t always have all the necessary skills,” said Jan DeYoung, who also oversees business incubators St. Louis County operates with its partner, St. Louis City Development Corp.

St. Louis County secured a $1.9 million grant from the Small Business Administration (SBA) to pay for the new program, which will focus on businesses that have five or more employees and a commitment to expand. The Center for Business Growth will offer business coaching, executive mentoring on issues such as interviewing techniques and buying health insurance, and networking opportunities and programs to generate business leads. Hoskins, who had been director of marketing for technology firm G.A. Sullivan, and Donna Heckler, also an executive director of the new center and formerly a marketing executive with Medicine Shoppe International, joined the Economic Council staff in May to spearhead the new effort.

"We’re calling it an incubator without walls,” Hoskins said. “It should be able to serve many more times the 50 or so startup businesses” now in the Economic Council’s physical incubators.

The Economic Council currently operates three incubators -- in West County, South County and in midtown St. Louis -- that can serve a total of about 50 companies. A fourth incubator that will serve 10 to 15 companies is scheduled to open in Wellston in north St. Louis County next month. Startup businesses can remain in the centers up to four years. Unlike other specialized incubators for high-tech and biotech firms, the Economic Council’s incubators serve a broad range of companies that are usually financed by the owners or through family and friends.

Originally, the Economic Council was going to use the SBA grant to open another physical incubator. The idea changed to a small-business resource center both because of the need and the opportunity to serve more businesses, Heckler said.

"I’d still like to have access to some of these incubator resources,” said Mary Pownall, who with her husband, Steve, owns Bemas Software Inc.

Bemas, which develops human resource and benefits administration software for clients nationally, moved out of the West County incubator in August 2003. The seven-person firm still faces growth issues and other challenges that the incubator staff helped Bemas address, Pownall said.

"We’d always had in mind putting together an advisory board,” she said, and that task would be easier if the business had a continuing relationship with the incubators.

That kind of help would be available in the new center.

Most of the SBA grant money, 45 percent, is going to run programs for the new center’s small-business clients, Heckler said. Development and management of the center and its facility, combined, will take a similar percentage.

She cited 2001 U.S. Census data that showed the St. Louis area had only a 4.5 percent growth in firms with 10 to 500 employees but managed to achieve the same growth in employment and payroll as the United States as a whole, which had a growth rate for firms with 10 to 500 employees nearly triple that of St. Louis. Of businesses in St. Louis, 96 percent have less than 500 employees, according to Census data.

It’s not clear from Census data why St. Louis does a better job at stimulating growth in jobs and payroll. Heckler speculated that the region has a wealth of former corporate executives who start businesses here rather than leave the area, and St. Louis has strong educational institutions that support the small-business community.

Businesses that work with incubators have a greater chance of surviving, and businesses with five employees or more have a greater likelihood of growing, she said.

The SBA grant came after a push by U.S. Rep. Richard Gephardt, who visited the Economic Council’s incubator in South County last year, DeYoung said. His staff is still hammering out details for the grant, including lining up mentors from some of the region’s larger businesses.

© 2004 American City Business Journals Inc.

Delayed by cleanup, Wellston incubator will open in October
By Eric Heisler of the St. Louis Post-Dispatch

Project overcomes soil and pollution problems at old Wagner Electric site. Held up by soil and pollution cleanup issues, an incubator to help fledgling businesses in Wellston is set to open in October.

The incubator is part of a larger effort by the St. Louis County Economic Council to revive Wellston as a business and industrial hub. When finished, it will become the fourth St. Louis Enterprise Center, replacing one that closed in Pagedale several years ago.

"What we want to do is create job opportunities,” said Jackie Wellington, vice president of the economic council. “This will hopefully help startup enterprises in an area that we’re trying to rebuild and attract new business."

The building will house between 10 and 15 companies. It’s being constructed for $2.5 million through a mix of public funding sources.

The incubator is part of a larger business and training complex set to rise on the former site of Wagner Electric Co. Wagner, which produced brakes for automobiles, once employed 6,000 workers in the area’s northern inner-ring suburbs. But it closed in 1983, leaving Wellston with a hulking, vacant complex at its center. Even worse, the site was polluted with toxic chemicals.

The incubator is a middle step in the process to remediate the site and build it back up as a new commercial area. The region’s Metropolitan Education and Training Center trains workers nearby. Next door, land is being prepared for two business parks that will be built through a public-private effort. Initially, the incubator was expected to open several years ago in the MET center. The economic council decided instead to construct a building because of a space shortage at the training center.

St. Louis County broke ground in late 2002 and hoped to have the next incubator open last year. But the project was slowed when remediation of pollutants at the site took longer than anticipated. Then, workers were surprised to discover asphalt, wood and concrete in the soil -- the apparent result of debris being dumped years ago from a nearby demolition. “There was a lot more junk than we thought would be there,” Wellington said. It meant engineers would have to redesign the building’s foundation to work around the debris.

The area’s other enterprise centers are in Chesterfield, south St. Louis County and midtown St. Louis. In the centers, startup companies pay reduced rent. They’re able to cut costs by sharing equipment and facilities. The businesses in the incubator receive mentoring and training through the program. Most companies stay for three to four years. Typically, the startups pay a higher rent each year in the incubator to ease the transition. “It’s a program that’s worked exceptionally well for us,” said Jan DeYoung, director of the program for the county. “When the companies graduate from the incubator, they tend to locate in the communities in which they’ve been incubated."

Wellston’s incubator will be 10,000 square feet, a bit smaller than its counterparts, DeYoung said, but the building is designed to be expanded.

Republished with the permission of the St. Louis Post-Dispatch
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Charlie Dooley Sees Progress in St. Louis County
By Martin Van Der Werf of the St. Louis Post Dispatch

For decades, St. Louis County has been the destination for people leaving the city for more space, nicer surroundings and proximity to employees. But the county’s leadership role has been slipping. The population has leveled off and begun to drop, the Census Bureau says. A study by the University of Missouri at St. Louis indicates that the people who moved from the county between 1993 and 2002 took about $2.6 billion in household income with them.

Charlie A. Dooley became St. Louis County executive under difficult circumstances. He was elected to the position by fellow council members after the death in October of George R. “Buzz” Westfall.

Dooley, with less than a year on the job, is standing for election in November. He stumbled into politics with an appointment to the parks board in Northwoods.

What are the key issues facing the county?

The key is economic development. It’s about jobs and how we keep St. Louis County as the economic engine of this state and the leader of this region. That, I think, is of utmost importance in our minds.

A lot of St. Louis County is more or less built out. Is it at a tipping point, where it can slip backward, or can it go forward?

See, I have a problem with you saying it’s built out. Let me give you an example. Within the next two to three years, there’s going to be over 4,000 new homes built in St. Louis County. That’s not built out. That’s gonna happen. That’s on the books. That’s in the process now. Four thousand new homes. People don’t build homes where people can’t move to.

Then, you look at the sale of the (abandoned county) jail (in Chesterfield) that’s going to be coming up very shortly. You’re talking about, what, 32 acres of land in prime development area. Think of the tremendous opportunity.

So, to say that we are stagnant population or stagnant business, that is not true. Look what we did with the Ford plant in Hazelwood. We saved those jobs. So, we’re reaching out to the business community and saying, look, St. Louis County is a great place to do business, because people are doing business here, and people doing business like to do business where people are successful.

It seems as if the trends show companies moving farther west, farther north, farther south. They talk about more land, about lower costs for land, less regulation. What does St. Louis County have to offer that other counties don’t have?

Look at the (proposed business park near) Lambert airport. You’re talking over 600 acres of land, and there’s 472 acres of land that is actually developable. You’re talking about the possibility of 12,000 jobs. Can you think of any other place in this state or in this region that has that type of land assembled, that can really bring those types of meaningful jobs? We’re talking about jobs that people can support their families (with), good-paying jobs.

Does the county need to look at the regulation of business? Is there too much red tape?

I don’t think so. Anywhere businesses go, they understand there are requirements. You can’t get away from requirements. No business can. I don’t think our requirements are any different than anyone else’s. I think we do a good job of working with people. So, I just don’t think that that is a true statement. St. Louis is actually one of the few counties where you can get a permit online.

One of the concerns expressed by a lot of people is that problems in the city of St. Louis — blight, homelessness — are spreading into the county. Is that a concern?

That is always a concern to any government. But let me tell you some of the things the county is doing about our inner-ring cities. If you look at, for example, in Wellston and Hillsdale and Pagedale and Pine Lawn, there you have new homes being built (where homes) haven’t been built in decades. The county economic council is working with the city of Jennings to help develop its marketing plan, its redevelopment plan, its land-acquisition plan, all those things.

Would some smaller cities be better off if they merged?

You can say the same thing about the fire districts. You can say the same thing about the school districts. But I think that’s something people themselves have to determine, and the economics will determine that in the future. But . . . we do lose efficiency in government in some respects, there’s no question about it.

We got multiple police departments overlapping; we do have those concerns. There are issues with zoning departments in certain areas. I think as time moves on, when people realize that we can’t do what we do anymore, there will be some more mergers.

In the short run, by the same token, if you ask those individuals in those venues, they’d say, “Yes, it’s the best thing going, because I get to have control, direct control over my taxpayers’ dollars.” I’m not going to argue with those people.

You grew up in North County and went to Wellston High School. Now, you’re the most important government official in St. Louis County. What does your example say about opportunity?

Opportunity is present in St. Louis County at many different levels. There’s business opportunity, there’s no question about that. . . . St. Louis County is the best place to live because we’ve got some of the most affordable housing. . . . We’ve got a tremendous park system in St. Louis County. So, we got a lot of things (about) the quality of life that I think can make a big difference in people’s lives.

I think this is a great place to live; it’s the center of this whole region. It’s where the most activity is taking place. So, why would you not want to be a part of that?

Republished with the permission of the St. Louis Post-Dispatch
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Lambert business park begins to take wing Developers will start drafting plans next week for prized 600 acres
By Eric Heisler of the St. Louis Post-Dispatch

A much-discussed idea for a $400 million business park with 12,000 jobs near Lambert Field is about to be tested in the private sector. Planning for the 600-acre industrial and office park has been led for several years by government officials, who’ve hashed out a rough design through sometimes heated discussion. But next week, private developers will get a crack at the project, one of the largest job-creation efforts for St. Louis County in decades.

In crafting plans for the park, developers will seek to reuse a former residential area that was emptied in an airport noise buyout. As directed by the county, their mission will be to turn the site into a rare find in built-out St. Louis County: open land suited for industry. “This land has issues, but there’s really no open ground like it in St. Louis County of that size and potential,” said Paul McKee, chairman of McEagle Development, a developer in O’Fallon, Mo. “But there’s not much you can do with it the way the land is now. It will take a lot of work and investment.”

McEagle, developer of the WingHaven community in St. Charles County, is among the 16 developers expected to submit proposals for all or parts of the park. The company plans to partner with TriStar Business Communities of Chesterfield.

Eventually, the county hopes that the park will have a $7 billion economic impact. An estimated $57 million in tax increment financing would help to overcome several obstacles. Despite its prime location near the airport and several major highways, the site has seen several failed development attempts. Those efforts were harmed by fighting among Kinloch, Ferguson and Berkeley -- all with a stake in the park -- and were tainted by a land scam, where investors were cheated out of millions of dollars.

Until the early 1980s, much of the land was filled by neighborhoods of modest houses. At that time, the city of St. Louis began acquiring the homes in a buyout required by the Federal Aviation Administration. FAA regulations prevent the land from being used for houses but allow commercial use.

Redevelopment is complicated by the way the city demolished some of the houses, crushing them into the ground and covering them with dirt. Another challenge is converting the land for commercial use. “It’s a residential grid pattern, and it’s hilly,” said Jackie Wellington, vice president of the St. Louis County Economic Council. “You can’t put big commercial buildings there without completely flattening the land out.”

After the three cities sputtered in their attempts to develop separate parks, George R. “Buzz” Westfall, the late county executive, stepped in. Under political pressure, the three cities said they’d work together, and a development committee was formed to pursue the project. The committee has crafted a loose plan, and it will issue its request for developer’s proposals next week. This year, it will choose a developer or a group of developers and sell the land to them. The developer will construct buildings and roads on the site and recruit companies to the park.

County officials hope the park will draw employers that otherwise would locate in outlying suburbs or in other metro areas. “If a company wants a large tract of reasonably priced ground and they don’t want to go in the floodplain, they’re not going to be able to find a spot in St. Louis County right now,” said Denny Coleman, president of the economic council. “That’s why we’re putting forward this extraordinary effort.”

The park planned for east of Lambert Field is likely to include . . . Jobs: 12,000 Total investment: $412 million Size: 600 acres Property and income-tax revenue: $320 million Economic impact: $7 billion Public funding: $57 million in tax increment financing

SOURCE: ST. LOUIS COUNTY ECONOMIC COUNCIL
Republished with the permission of the St. Louis Post-Dispatch
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Heuermann takes helm of World Trade Center St. Louis

Robert Heuermann Jr. has been named executive director of the World Trade Center St. Louis, the center said Wednesday.

Heuermann, 38, will be responsible to expand international economic development initiatives and merge its administrative functions with the St. Louis Center for International Relations, of which he is also executive director.

He will also work to strengthen relations with local and international businesses, help companies enter and conduct business internationally and work on promotions and outreach.

The two agencies will maintain separate identities, Heuermann said.

The St. Louis Center for International Relations is jointly administered by the City of St. Louis and St. Louis County and works to promote the metropolitan area’s international profile.

The World Trade Center St. Louis offers global market research and other services to metro St. Louis, the state of Missouri and southern Illinois.

© 2004 American City Business Journals Inc.

Target Corp., Schnucks Join Revival at Northland
By Eric Heisler of the St. Louis Post-Dispatch

Sansone Group will develop Plaza on the Boulevard, with the two anchor tenants helping to energize the North County location.

Held in limbo for years without a major tenant, a $50 million plan to build a modern retail strip at the site of Northland Shopping Center is back on track.

Target Corp. said late last week that it will be the lead tenant in the Plaza on the Boulevard, which will replace the aging, mostly empty shopping mall in Jennings, according to the Sansone Group, the developer behind the project.

Target will be joined by a Schnuck Markets Inc. supermarket and several yet-to-be-named smaller retailers.

The redevelopment project is part of a larger renaissance that’s taking place in north St. Louis County. Older retail sites are being reused, and a housing boom is under way.

"I think this project restores some retail vigor to a community that’s been sorely underserved for many years,” said Steve J. Anderson, vice president of business development for the St. Louis County Economic Council. “You’re dealing with an area there that’s ... been impacted by the economic downturn. We think this could help resurrect it."

Northland Shopping Center, built in the early 1950s, was one of the St. Louis area’s first suburban malls, and it was once a thriving hub of retail activity in North County.

But as it aged, the mall struggled to compete with contemporary, strategically placed shopping centers. By the mid-1990s, most tenants were gone. A final blow came when Famous-Barr abandoned the site in 1994.

Then, in late 2000, Sansone and the city of Jennings unveiled plans to redevelop the property. Within two years, Sansone had torn down a theater at the site to pave the way for the project’s $7 million first phase: a new Aldi’s grocery and a 50,000-square-foot office building for the state of Missouri.

But plans for a much larger retail center stalled when Sansone struggled to draw a lead tenant.

"It was a combination of factors that slowed it down,” said James Sansone, a principal with the Sansone Group. “Certainly, the economy had some impact, but foremost was the image. You have a shopping center that was once thriving and now is dilapidated, and retailers wonder why that’s the case."

Along with a 270,000-square-foot shopping strip, the center will feature five standalone buildings around the site’s perimeter for restaurants and other retailers, Sansone said.

The project will benefit from about $10 million in tax increment financing, Sansone said. TIF is a method of funding some aspects of a project through future sales tax generated by the site.

Sansone expects to tear down the existing mall and begin construction this year or early next year, in time for the first tenants to move in by the end of 2005. Before then, the developer must attract several smaller retailers and acquire the property.

"We see this as a major opportunity, and we’re excited to be part of plans to remake this retail area,” said Lori Willis, a Schnucks spokeswoman. The grocer plans to close two older stores in Jennings and Dellwood when the new store opens, she said.

Though the mall suffers from an antiquated design, the corner site is still a viable one for retail because of its relative proximity to Interstate 70, said Anderson, of the economic council.

"I think this was just the process of the evolution of malls,” he said. “It’s still a major intersection; there’s still a major employer next door in Emerson. Frankly, it’s still a good location."

Republished with the permission of the St. Louis Post-Dispatch
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