"It's in place and ready to go as soon as they do a deal," saysMichael Pyles, the point man for Dallas/Fort Worth InternationalAirport board's drive to expand FTZ 39. The decision gives addednegotiating leverage to developers for their distribution centersand warehouses in and around the Union Pacific intermodal yard insouthern Dallas County. The zone is classified as a second site soit's a wide open prairie instead of being structured as a subzone,which is tenant-specific.

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Pyles tells GlobeSt.com that the six landowners in the expansionarea paid a pro-rata share based on acreage to cover the $200,000tab to expand FTZ 39 from 574 acres to nearly 3,200 acres. SanDiego-based Allen Group is the largest stakeholder, having added1,949 acres to its previously approved 1,303 acres ofFTZ-designated land in the Dallas Logistics Hub. Sunridge BusinessPark's owner, Wilmer-Pleasant Run LP of Dallas, got approval for434 acres; Dalport Business Park, now owned by Chicago-based FirstIndustrial, put in 356 acres; ProLogis 20/35 Park, owned byDenver-based ProLogis, paid for 175 acres; Crossroads Trade Center,a project of Fort Worth-based Hillwood, locked in 112 acres;Lancaster's airport board secured 50 acres; and Indianapolis-basedDuke Realty Corp. added 32 acres in Duke Intermodal Park. The landblock straddles the cities of Hutchins, Wilmer, Lancaster andDallas' southernmost tip, where several million sf of spec productis rising or proposed, including the Allen Group's first twobuildings, totaling 827,850 sf, at 4800 and 4900 Langdon Rd.

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"We do have others showing interest," Pyles says. "We probablywill do an expansion in the future if they go through the hoopsthese people did."

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CEO Richard S. Allen says Dallas Logistics Hub is the largestFTZ-designated block in the Allen Group's portfolio with theexpansion. The developer's previously designated land was part ofhis 2,000-acre purchase of Southport. "It was still important that[expansion] application get processed because we need thatdesignation on other sites," he says about the 6,000-acre DallasLogistics Hub. "We did have a user that did need it and we lostthat user to another park."

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Dealmakers say there was more than one lost deal in recent yearsas the application was making its way through the process, whichinvolved clearances from all school districts, municipalities andDallas County before it moved to the feds' desk. "Any amenity isvaluable. With Triple Freeport and now the Foreign Trade Zone, itjust adds to the marketability," says Jeff Thornton, Duke's seniorvice president of operations in Dallas, who added. "if tenants needit in the future, it's there." Duke has added the 627,100-sf DukeIntermodal Park to the FTZ zone.

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D/FW airport's board is the gatekeeper for FTZ 39, having soughtexpansions via subzones in the past, but not a full-blownexpansion. "This is the largest we've ever sponsored. I know it'sthe largest in the state of Texas," Pyles says, "and one of thelargest in the US." The board has 2,500 acres of on-airportdesignated land in its bank.

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"Parks are sustainable without it. Certain customers use it andcertain customers don't," Allen says. "Clearly we do not have anyindustrial parks without a Foreign Trade Zone opportunity. That'san important part of the package."

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