PacSun, Wal-Mart developments lead 2007 rebound in Olathe's nonresidential activity

02/16/2008

Beyond the beginning of major projects like the Pacific Sunwear warehouse and Wal-Mart Super Center, 2007 continued a trend of increasing commercial and industrial development in Olathe.

"In the last probably five years, everything's kind of escalated," said Tim McKee, executive vice president for the Olathe Chamber of Commerce.

The $146.6 million in non-residential investment in the city in 2007 represented a rebound from 2006's total of $105.6 million and came from several different sources, starting the year's largest, the $16.5-million, 447,550-square-foot Pacific Sunwear facility at 167th Street and Lone Elm Road.

McKee said more growth in that area is on the way, sparked in part by a city-funded interchange.

The $67 million city-funded interchange will connect Interstate 35 and Kansas 7 to 159th Street, adding on and off ramps there. A contract is expected to be awarded in April; construction is expected to begin in June with completion in 2010.

"With the new interchange coming in, it's just the beginning," McKee said of development in the area. "I think it's only going to build."

Already, a nearby 601,000-square-foot speculative warehouse, the area's largest, is under construction by Kessinger/Hunter & Co. And just north on Kansas 7 at Santa Fe, a $8.5 million Wal-Mart Super Center is under construction.

During 2007, the city also ushered in several projects along Kansas 10, including the Corporate Ridge development at Ridgeview Road. Some tenants include the Olathe chamber, Terracon Consultants Inc., an engineering consulting firm, and Garmin International.

"The office development along K-10 is really taking off," McKee said.

Also in 2007, the city announced that US Bank will become the first tenant in the 107-acre College West Business Park near Kansas 7 and Kansas 10.

Looking ahead, McKee said several projects are taking shape, including the city's bioscience facility on College Boulevard. The 92-acre research park is being developed by Kansas State University and the Kansas Bioscience Authority.

The park is expected to bring $150 million in public and private investment and is on target to generate 3,000 new jobs with average annual salaries of $57,000. Fort Dodge Animal Health has announced it will be the park's anchor tenant and plans a $40 million facility there.

XenoTech LLC, an in-vitro research firm, has announced it intends to invest nearly $10 million to move its Lenexa headquarters to the park.

In addition to its Corporate Ridge facility, Garmin is expanding its campus at 151st Street and Ridgeview Road. A warehouse and manufacturing facility is under construction.

And with 85 acres available for future expansion, the fast-growing company-- like the city it calls home -- shows no signs of slowing down.

"I don't think they're going to be done growing any time soon," McKee said.

ON THE RISE

The total dollar amount from the value of new nonresidential construction in Olathe has been on a general upward trend since 2003.

** 2007: $146.6 million

** 2006: $105.6 million

** 2005: $168.8 million

** 2004: $65.2 million

** 2003: $74.3 million

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