Hundreds of jobs lost when warehouse demolished

Tornado wipes out opportunities for job growth

BY JERRY SHAW

The destruction of a new warehouse, valued at $61 million, in St. Lucie County by a tornado from Hurricane Milton is not only a heartbreaking reminder of the devastation caused by natural disasters, but also a major setback that robbed the county of hundreds of jobs and millions of dollars in tax revenue.

The building was completed in early 2024 with 1.1 million square feet of space at the South Florida Logistics Center 95 near Orange Avenue and Kings Highway. It was considered to be a possible distribution center. 

Employment was estimated at 733 jobs, based on the U.S. Energy Information Administration Energy Consumption Survey, according to Maureen Saltzer, director of communications and outreach at the Economic Development Council of St. Lucie County. The actual number of employees would depend on user needs by the company.

“The tornado went right through the middle of it,” said Saltzer, who viewed the damage. “It was completely destroyed.” Plans for a replacement facility are “unknown at this time,” as the developer, Stonemont Financial, considers its options and county officials settle insurance claims. 

The twister that struck the warehouse was an EF3 tornado, which carries winds between 136 and 165 miles per hour.

As with many results of natural disasters, a 245,000-square-foot building, also developed by Stonemont Financial, next to the destroyed warehouse was untouched by the unprecedented tornadoes that swept through the county during the hurricane.

Total ad valorem taxes on the destroyed warehouse for 2024 are set at $1,524,173, according to Chris Koblegard, real estate appraiser at the county property appraiser’s office. These are taxes based on the value of the commercial property starting in January 2024, and they will be collected by the county. However, the large tax base will decrease significantly beginning this year because of the damage. The county may benefit financially later if the building is replaced.

Koblegard was also stunned by the sight of the ruins. “It’s all mangled and torn to shreds,” he noted after driving by the location.

On the positive side, no one was in the building at the time so there were no injuries, and Koblegard pointed out there have been a number of storage facilities built in the area since the Covid outbreak, providing business and employment opportunities within the county.

The warehouse facilities are owned privately in the county’s industrial and commercial areas, said Saltzer.

The Amazon center in Port St. Lucie at Midway Road and I-95 offers some 1,000 jobs since opening last summer.

A million-square-foot building sits close to the South Florida Logistics Center. In Port St. Lucie, there are two buildings in Legacy Park at some 168,000 and 520,000 square feet. Other storage and distribution facilities throughout the county range from 162,000 square feet to 664,000 square feet.

The warehouse, distribution, and logistics sector in the county offers space for more than 200 businesses and 3,000 employees, the Economic Development Council reported. Aside from the Amazon delivery station, companies include FedEx Ground, Southern Eagle Distributing, Walmart distribution, and Coca-Cola.

To continue to take advantage of this growing economic sector, the EDC commissioned a warehouse, distribution, and logistics study for continued efforts in attracting employment opportunities in the county.

Reconstruction of the annihilated warehouse remains a possibility. St. Lucie County has become a prime area for industrial development, according to Stonemont Financial, which calls itself “a leader in supply chain and logistics in the region.”