River Ridge Reports Strong 2021
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Despite economic challenges in 2021, the River Ridge Commerce Center in Jeffersonville recorded what officials are calling the best year in the commerce park’s 23-year history. The 6,000-acre complex announced several multi-million dollar land deals this year that could result in thousands of new jobs by companies establishing operations. More than 70 businesses now operate at the facility, employing more than 11,000 workers.
“We had a very good year. We really did,” said River Ridge Development Authority Executive Director Jerry Acy, in an interview with Inside INdiana Business. “And looking forward, we have a tremendous number of active projects that we’re working on now. And a large number that we’ve responded to RFPs (request for proposals), and inquiries and direct contacts. We have a lot of balls in the air currently.”
One of the projects Acy is “juggling” is negotiations for a 600-acre tract of land. If the sale is successfully completed, it would be the single, largest land deal in the history of the RRDA. The RRDA is not disclosing specific details of the entity. However, Acy says the potential purchaser has indicated the project would include constructing a build-to-suit industrial campus consisting of multiple facilities.
“It definitely is exciting, especially looking at the prospect for land sale of that magnitude. And it gives us an opportunity to be involved in a different major industrial sector that we currently do not have here,” said Acy.
Acy says if the deal is successful, the purchase will represent an important benchmark with 50% of the available land in the complex having been purchased.
The deal will also generate $42 million in revenue for the RRDA, which would then be reinvested into the business park. Acy says there is no shortage of projects the authority needs to address.
“We still have about estimated $250 million, in today dollars, that we’ll need to invest over the next probably 10 to 15 years to do additional clearing and site preparation and new infrastructure, especially on the north end of the facility,” said Acy.
He says the north end of the massive complex was the most impacted environmentally by the operations of the ammunition plant from the 1940s to the 1970s. He says it will cost the RRDA “a lot more money” for building removal and soil remediation.
Acy says one of the biggest accomplishments for the RRDA this year was closing a deal with Van Trust Real Estate. The developer is working withs Pennsylvania-based Communications Test Design Inc. on a 700,000-square-foot facility that will employ 1,000 workers over the next five years.
Acy says another important negotiation this year involved Denver-based OmniTRAX Inc. The railway holding company began operating rail service in the complex this fall. The company operates nearly two dozen regional and short line railroads. More importantly to Acy, the company is also a business developer.
He says the company will help attract companies to River Ridge, especially those needing rail service.
“They do more than just the railway. They do other industrial prospect, development and completion that can do turnkey,” said Acy. “They’re already really engaged and operating. We feel like that’s a great partner for us going forward.”
Looking ahead to the new year, Acy says 1.5 million square feet of industrial space will go online in 2022, and as much as two million square feet of construction on new facilities will get underway.
“This has been a very successful year for River Ridge, and this is a great way to cap it off,” Acy said. “We will work closely with this potential investor to complete due diligence so the buyer can move forward with development and construction of another great project at River Ridge.”
In an interview with Inside INdiana Business, Acy said he expects continued growth in 2022.