The new St. Charles office and manufacturing facility for automotive LED manufacturer Diode Dynamics is seen in this rendering.
Diode, which was founded in 2008, will move its manufacturing operations and employees to the new headquarters at Fountain Lakes Commerce Center, 3870 Millstone Parkway, where the company plans to add 36 new positions over the next five years. The 9.5-acre project also encompasses 3861 Millstone Parkway. The company previously leased two buildings totaling 54,000 square feet in an Earth City business park, at 4200 Shoreline Drive and 13743 Shoreline Court E.
The price for the new headquarters was not disclosed, but documents filed with the city of St. Charles list a $9.5 million price for land acquisition and construction. The site was previously farmland. The 9.5 acres, which were purchased by Diode’s ownership group, allow for expansion up to 250,000 square feet, a company spokesperson said. The majority stake in the ownership group is held by CEO Paul McCain.
The customized facility, which is being built by Edwardsville-based Contegra Construction, will include a showroom, four drive-in engineering bays, a 14,000-square-foot electronics manufacturing area, an engineering laboratory, a 37,000-square-foot warehouse with 30-foot ceilings and a two-story, 16,000-square-foot office space.
The company, a manufacturer of aftermarket automotive LED lighting products, said the expansion of manufacturing capacity is needed to meet the high demand for its products.
Diode received incentives from state, local and country sources for the expansion. The factory expansion is supported by the Missouri Works program of the Missouri Department of Economic Development that offers incentives for workforce training. Funding also came from an $8.67 million U.S. Small Business Administration loan from the St. Charles County Economic Development Council, according to county records. The city of St. Charles approved $9.5 million in industrial revenue bonds to finance the project in July, which includes a 15-year property tax abatement and an exemption on sales taxes for construction materials, estimated at a $177,460 benefit. During the 15-year term, the report to the city from a bond counsel said that Diode will make payments in lieu of taxes at a 50% rate for the Orchard Farm School District and all taxing districts except the St. Charles County Ambulance District, which has asked for 100% of what would have been its taxes received if there was no abatement for the project.
The previous assessed valuation for the site was $1,180, but Diode estimated in a report to the city that after construction of its manufacturing facility, the land would have an assessed valuation closer to $3 million.
“We are thrilled to be constructing a new headquarters that’s custom-tailored to our needs,” said McCain. “This project will perfectly support our mission to design and manufacture automotive lighting products with the absolute best quality and performance possible, here in the USA.”
Joining Contegra on construction are Remiger Design, Bax Engineering and SSC Engineering. Subcontractors include Kaemmerlen Electric, electrical; O.J. Laughlin Plumbing Co. Inc., plumbing; Wiegmann Associates, mechanical; and Bi-State Fire Protection Corp., fire protection.
The project is being financed by Bank of Franklin County. Diode Dynamics was represented by James Delgado of Cozad Commercial Real Estate, with David Zobel of Danna McKitrick PC acting as counsel.