LSEDC investors team up on 'cool' project

Lee’s Summit Economic Development Council investors A.L. Huber and Alpha Omega Geotech are joining forces on a 26,000-SF expansion at County Beverage Company on Bailey Rd. in Lee’s Summit, Mo.

County Beverage Company distributes products for Anheuser Busch, Corona, KC Bier Co., New Belgium, Deschutes, O’Fallon Brewery and Abita Brewing. The company also distributes several non-alcoholic beverages, including Biosteel and Celsius energy drinks.

The beverage company's territory stretches eastern Jackson County and includes both Arrowhead and Kauffman stadiums.

Two local family owners - the Pizzichinos and the Whites - purchased County Beverage Company in 1970. At the time, the company was located in Raytown, Mo.

In 1998, the owners moved County Beverage Company to Lee’s Summit, positioning the company near dead-center of its territory.

“We like doing business in Lee’s Summit and obviously, we’ve seen a lot of growth,” said Mike Pizzichino.

Since its move to Lee’s Summit, the company has made six additions to its facilities. In September 2019, it was apparent the company would need more space due to an increase in new products. According to Pizzichino, County Beverage Company now sees an average of 30 new products a month.

Pizzichino reached out to vice president of A.L. Huber, Keith Dorrian, who attended Archbishop O' Hara High School with him. When his former classmate contacted him about a project in Lee’s Summit, Dorrian was quick to jump on board.

“I’m a resident of Lee’s Summit. I’m always excited when we get the opportunity to build projects for local businesses in my community,” said Dorrian.

Like many projects, there was an interruption with the onset of the COVID-19 pandemic, but the team was able to resume the design and pre-construction phase in May 2020.

By September 2020, construction had begun.

Dorrian said A.L. Huber’s experience with cold storage for other beverage wholesalers in the area helped his team streamline the process and get to the building process sooner. Managing a construction team during a global pandemic, though, was not as easy.

“We had to constantly update our safety protocol guidelines to align with the updates that we were receiving from the CDC and OSHA to keep our field crew safe,” said Dorrian.

Pizzichino agreed, adding that the pandemic shifted volume that typically went to bars and restaurants to take-home products.

“I’ve been working here 25 years and it’s been by far one of the hardest years. Everything is just harder,” said Pizzichino.

The pandemic also affected the supply chain, slowing down some of the supply procurement for construction. But Dorrian said so far, the company has not experienced any delays that were severe enough to affect its timeline.

Prior to construction, A.L. Huber contracted with Alpha and Omega Geotech to conduct a soil investigation and geotech report. It is now working with the team to provide material testing.

“We’ve partnered together on many successful projects,” said Dorrian said of Alpha Omega. “They’re a great partner and always provide great service to the project team and our mutual clients.”

Dorrian also worked closely with the City of Lee’s Summit’s development services department. He said his project manager, Mike Weisenborn, and plans examiner, Joe Frogge, were always responsive and attentive when he needed them whether it be during the permit process or construction.

“They’re very pro-development in Lee’s Summit and I think that starts at the top. You definitely feel that when you walk into their office,” Dorrian said. “Just a great experience all the way around.”

As for Pizzichino, he said he has been impressed with the work conducted by both A.L. Huber and Alpha Omega Geotech.

The expansion is expected to be complete this month (April 2021) and will include 15,000 SF of cooler space, 11,000 SF of warehouse and storage space, as well as eight new loading docks.

Hunt Midwest's SubTropolis expands to meet today’s need for speed

Hunt Midwest has announced plans to build out an additional 700,000 SF of Class-A space in SubTropolis, the world’s largest underground business complex.

This expansion, built on speculation, provides an excellent solution for warehousing and distribution operations struggling to meet the current supply chain and speed-to-market demands created by today’s online shoppers.

With more than 7,000,000 SF of industrial space, SubTropolis offers benefits beyond traditional above-ground industrial buildings. Lower operations and leasing costs top the list, along with a naturally temperature-controlled climate, ideal for storing inventory with a limited lifespan or specific temperature needs.

“The naturally climate-controlled environment in SubTropolis provides a low-cost solution for distribution space in the heart of the logistics corridor,” said Mike Bell, senior vice president with Hunt Midwest.

SubTropolis delivers warm-shell warehousing with demisable space from 50,000 – 300,000 SF and occupancy in 90 – 120 days. The short build-out period ensures that businesses experiencing rapid growth can scale operations to continue to meet consumer demand in a timely manner.

“Building a business complex into limestone cliffs isn’t something that’s done every day. But Hunt Midwest has been able to successfully leverage one of Kansas City’s natural resources to create a unique environment that benefits many business models,” Bell said.

A substantial portion of SubTropolis’ footprint is currently occupied by e-commerce, archival and document storage, pharmaceutical and animal health facilities and food distributors.

The complex’s location also adds value, as Kansas City is the most centrally-located of major U.S. markets. KC is at the heart of a railway corridor reaching from coast to coast and Canada to Mexico and the Kansas City International Airport moves more air cargo each year than any airport within a six-state region.

Tenants residing in SubTropolis reach 90 percent of the country with their products within two days via ground or air, resulting in reduced delivery costs.

Combined with other features such as an on-site, low-latency fiber network and 24/7/365 armed security, the expanding footprint of SubTropolis is poised to support the future growth and business needs of industries focused on keeping up with today’s fast-paced economy.

About Hunt Midwest: Hunt Midwest is a dynamic real estate development company privately held by the Lamar Hunt family. Based in Kansas City with over 50 years of development, construction and management experience, Hunt Midwest’s wide range of projects include industrial, commercial, mission critical, self-storage, residential, multifamily, senior living, mixed use and SubTropolis, the world’s largest underground business complex. Hunt Midwest is part of the Lamar Hunt family’s diverse portfolio of entities involved in real estate, sports/media, energy/resources and private equity investments. In addition to Hunt Midwest, marquee entities include the Kansas City Chiefs, Hunt Southwest, FC Dallas Soccer Club, Toyota Stadium, Chicago Bulls and United Center.

About SubTropolis: As the world’s largest underground business complex, SubTropolis sets the standard for subsurface business developments. SubTropolis was created through the mining of a 270-million-year-old limestone deposit creating a 1,200-acre real estate development. In the mining process, limestone is removed by the room and pillar method, leaving 25-foot square pillars that are on 65-foot centers and 40 feet apart. SubTropolis is home to more than 55 local, regional, national and international companies that employ in excess of 2,000 people.

Largest online wellness shopping club in North America to invest $35.5 million in KC

To better serve its customers and speed up delivery of its world-class health and wellness products, Melaleuca plans to open a 508,000-SF distribution center and warehouse at 11401 N. Congress Avenue in KC’s Northland.

As a manufacturer and online retailer of over 450 exclusive health and wellness products, Melaleuca will invest at least $35.5 million into the facility and create more than 200 jobs within its first year of operation. Melaleuca expects the facility to be ready in early 2022 after completing an extensive retrofit of the plant formerly owned by Harley Davidson.

Since it was founded in September 1985, Melaleuca has grown into one of America’s largest online retailers, offering wellness products in the categories of nutrition, personal care, home cleaning and cosmetics. Much like Amazon, Melaleuca customers order online, and products are shipped directly to the customer’s home.

“Our products are being enthusiastically embraced throughout the world. Although Melaleuca has experienced periods of explosive growth over the years, consumers are flocking to Melaleuca now more than ever because they are concerned about their family’s overall health. They are searching for effective, safe, natural health and wellness products, which is Melaleuca’s specialty. When it comes to their health, people don’t want to take shortcuts, and they are relying on Melaleuca’s superior product line to enjoy healthier, more vibrant lives,” said Melaleuca CEO, Frank VanderSloot.

Melaleuca anticipates this new distribution center will not only speed up online delivery for customers throughout the Midwest, but also enable faster e-commerce shipping across the country.

In combination with its state-of-the-art distribution centers in Idaho Falls and Tennessee, Melaleuca is creating a logistics network so its products can reach the majority of its U.S.-based customers within two days of ordering.

“Melaleuca’s expansion into Kansas City, Missouri is significant for our community, and the new jobs created will help more Kansas Citians prosper through these challenging economic times,” said T’Risa McCord, interim president CEO of the Economic Development Corporation of Kansas City, Missouri.

“In the last 12 months, companies including Melaleuca, Inc. have selected the KC region to create more than $1 billion in capital investment and over 3,700 jobs,” said Tim Cowden, president and CEO of the Kansas City Area Development Council.

In early 2021, Melaleuca plans to hire plant administration and other leadership as the facility is being renovated. Candidates will be able to apply at MelaleucaJobs.com.

“The KC SmartPort team continues to position Kansas City’s advantages as a logistics hub including our region’s location, available workforce, community benefits and vertical readiness,” Cowden said.