VIEWPOINT:
A Developer's
Perspective
|
Scott Moe
Duke Realty |
"From a
macro standpoint, industrial has always been the
backbone of our country," says Scott Moe, Duke's
vice president, industrial leasing. "But we seem to
be pushing trucking, logistic companies and other
heavy industrial users farther out. If I were king
for a day, I'd make it mandatory for all cities to
commit a certain portion of their land for
industrial use. It would be proportionate to the
size of their community and include some outside
storage. Outside storage is the 'ugly duckling' of
industrial; however, it supports a manufacturer or
distributor. When a community says no to all outside
storage, they're losing good companies."
Moe credits cities like Eagan for taking a
"common-sense approach" to industrial development. "Eagan accommodates industrial companies without
detracting from their residential and retail base,"
he says. "It's good planning.... They're smart about
it and know they can attract companies that other
communities turn their nose up at."
Despite Eagan's large industrial base, it offers a
high quality of life. In 2006, Money magazine ranked
Eagan 12th on its list of "America's Best Places to
Live." Eagan ranked ahead of 733 other cities
nationwide.
Moe also says cities can be creative if they believe
their land will have more value in the future. For
example, Swift Transportation purchased land in
Inver Grove Heights for a trucking facility. "But
the city said, 'Some day we believe this will be an
attractive place for a higher-image development. So
Swift, you can locate here for X number of years and
then we have an option to rezone it.'"
Finally, Moe says trucking, logistics and
freight-forwarding companies often are treated
poorly, because they don't generate a large amount
of taxes proportionate to their land size. "So why
not have a more customized tax formula for these
companies?" he suggests. "Then they can make the
choice to pay the higher tax rates or move farther
out to a less desirable location."
Return to the "Industrial
Foundation" Feature
