Major industrial development planned in Lakeville

Scannell Properties, headquartered in Indianapolis, Ind., has developed multiple design scenarios to build Interstate South Logistics Park into either two or nine buildings, according to a Dec. 31, 2014, environmental assessment worksheet.

The project would create between 2 million and 3 million square feet of industrial warehousing and distribution space.

A third scenario between the two could be forwarded if deemed necessary.

The first scenario includes construction of up to nine buildings of varying sizes that would create an estimated maximum of 2.2 million square feet of space.        The second scenario is to build two buildings together totalling about 3 million square feet.

Lakeville Community Director Dave Olson said Scannell representatives last year signed a purchase agreement for the farm land, owned by the Jane Stepka family, which allows development to occur in phases.

“The economy is picking up and the light industrial warehouse and distribution market has picked up significantly, and they want to have the ability to have sites,” Olson said.

Scannell would either build the buildings, own them and lease them or sell the sites to other entities to build, he said.

“The site’s being marketed right now,” Olson said.

He said Scannell is talking to potential users for the site, including Amazon, but they do not have any company committed to move in yet.

“There are a couple really large distribution center projects that are looking at the Twin Cities market,” Olson said.

Tim Elam, Scannell Properties development manager, did not return calls seeking comment.

Located about one mile from I-35, Olson said one significant benefit of the acreage is its easy freeway access.

The site is next to a 46-acre property where development of a 94,000-square-foot FedEx freight facility will begin this spring.

Both of the Scannell’s development scenarios show the addition of an east/west road through the property, and Olson said the project will include the extension of Jacquard Avenue as development occurs.

Olson said the development will take at least five years to complete and it is significant for the city.

“There aren’t a lot of cities that have 176-acre tracts of land available to come in and develop and still be in that geographic area along a major transportation corridor,” Olson said.

He added the city has additional industrial properties open by Cedar Avenue.

“We have multiple industrial development options companies can look at,” Olson said. “That’s a good thing. It kind of puts us on the map.”