Clayco to build $65M Caterpillar distribution center

Facility will employ 500 to 600 people.

Clayco of St. Louis recently won a contract to design and build Caterpillar’s new $65 million distribution center in Clayton, Ohio, near Dayton.

When fully staffed, the site is expected to employ 500 to 600 people, according to Caterpillar Logistics Services.

Clayco said it would be looking for Dayton, Ohio-area subcontractors and suppliers.

In December, city and county officials announced they had lured Caterpillar Logistics to the area after more than a year of courting the company. The same month, the state of Ohio announced it was awarding $1.8 million in tax incentives to the company for the project.

The new facility will be known as the Clayton Distribution Center and span more than 1 million square feet, according to a statement issued by the company.

Once fully operational in 2011, Clayton will replace Caterpillar’s regional distribution site in Indianapolis and perform some of the work being done at the company’s parts distribution center in Morton, Ill. The project is part of a multi-year expansion and enhancement of its distribution network.

Clayton City Council sold 163 acres to Caterpillar Logistics for just under $2.1 million. The deal includes all 143 acres of the city’s Commerce Park on Hoke Road, plus 20 acres the city bought from Miami Valley Career Technology Center. Clayton officials said the city would donate land to Caterpillar Logistics if the company stays at the site for more than 11 years. If it pulls out in less than seven years, the company will owe the city the full purchase price. That figure is reduced 25 percent a year starting after the seven-year mark.

Clayton’s council used $700,000 in Montgomery County ED/GE grant funds approved last year for buying the land from Miami Valley CTC, as well as making improvements to Hoke Road to accommodate the extra traffic. In December, the state approved $1.8 million in tax incentives toward the project. In January, the city landed $600,000 in state roadwork development grant funds to upgrade roads around the site.

Caterpillar Logistics Services is a wholly owned subsidiary of Peoria, Ill.-based industrial equipment maker Caterpillar Inc. (NYSE: CAT). Caterpillar Logistics does work for its parent company and 65 other companies.

St. Louis-based Clayco Inc., led by Chairman and Chief Executive Bob Clark, is a full-service real estate development, design and construction firm with annual revenue of $755 million. It also has offices in Chicago, Detroit, Washington D.C., and Minneapolis.

Source: St. Louis Business Journal