St. Louis Produce Market acquiring more acreage
St. Louis Produce Market acquiring more acreage
In four to six months the St. Louis Produce Market will have closed deals to expand by about 25 acres.
Clarence Hughes, St. Louis market manager, said Feb. 8 that the market will purchase eight to 10 acres adjacent to the north side of the market, and will lease another 15 acres adjacent to the east side of the facility.
The new properties come from the city, private owners and the railroad, so "this was very complex. It was not a simple thing to get done," Mr. Hughes said. This deal has been in the works since 1993, Mr. Hughes said, adding that he had been working on it since July 2005.
The St. Louis market opened in the early 1950s. The current site is a little more than 40 acres.
Some of the newly acquired land, in a good concept will push trucks further from the building, Mr. Hughes said. We are proposing an additional building on the north end of the market. I don't know the size of that building. Were working with the USDA and others [with relevant experience] to best suit the markets needs. With a plan in hand, we will go back to the stockholders and build beyond their [anticipated] capacity. He said that produce entrepreneurs historically never imagine how quickly they can expand and utilize new space.
Emphasizing the word could, Mr. Hughes said that a new building could be done in 18 months after the new property is acquired. He added that the construction might also take a decade. Expansion, he said, will depend on the produce distributors choice to weigh a new, modern, efficient property against increased rent costs. He said that the willingness to absorb the expense of acquiring the property is a good indication of high motivation to endure construction costs.
There are six or seven produce wholesalers on the St. Louis Produce Market, Mr. Hughes said. This is down from 49 dealers 50 years ago. He said that there is greater diversity of related business at the market, including white-tablecloth [restaurant] suppliers, and a guy who owns pizza parlors, who is a supplier for a chain of 20 pizzerias for all their produce.
Mr. Hughes said that business is good. Were actually making money and paying taxes. Weve been very steady in last 15 years I have been here. The market is 100 percent full and everyone needs more space. That tells you something.
Clarence Hughes, St. Louis market manager, said Feb. 8 that the market will purchase eight to 10 acres adjacent to the north side of the market, and will lease another 15 acres adjacent to the east side of the facility.
The new properties come from the city, private owners and the railroad, so "this was very complex. It was not a simple thing to get done," Mr. Hughes said. This deal has been in the works since 1993, Mr. Hughes said, adding that he had been working on it since July 2005.
The St. Louis market opened in the early 1950s. The current site is a little more than 40 acres.
Some of the newly acquired land, in a good concept will push trucks further from the building, Mr. Hughes said. We are proposing an additional building on the north end of the market. I don't know the size of that building. Were working with the USDA and others [with relevant experience] to best suit the markets needs. With a plan in hand, we will go back to the stockholders and build beyond their [anticipated] capacity. He said that produce entrepreneurs historically never imagine how quickly they can expand and utilize new space.
Emphasizing the word could, Mr. Hughes said that a new building could be done in 18 months after the new property is acquired. He added that the construction might also take a decade. Expansion, he said, will depend on the produce distributors choice to weigh a new, modern, efficient property against increased rent costs. He said that the willingness to absorb the expense of acquiring the property is a good indication of high motivation to endure construction costs.
There are six or seven produce wholesalers on the St. Louis Produce Market, Mr. Hughes said. This is down from 49 dealers 50 years ago. He said that there is greater diversity of related business at the market, including white-tablecloth [restaurant] suppliers, and a guy who owns pizza parlors, who is a supplier for a chain of 20 pizzerias for all their produce.
Mr. Hughes said that business is good. Were actually making money and paying taxes. Weve been very steady in last 15 years I have been here. The market is 100 percent full and everyone needs more space. That tells you something.
