Kostal Kontakt to relocate headquarters

A German-based automotive parts supplier is proposing to invest more than $35 million in Rochester Hills to relocate its North American headquarters to a 16-acre parcel at Old Adams Road and M-59.

The proposed relocation is dependent upon the city and current property owner amending a court ordered consent judgement overseeing development on 104 acres of land at the location. Kostal Kontakt Systeme, Inc. is proposing purchasing 16 acres of the property for office, production and warehousing uses. Kostal is a fourth generation company that develops and produces electrical connectors for the automotive industry. The company must relocate by 2021 due to size limitations of its current leased building at 1350 W. Hamlin Road in Rochester Hills

The existing consent judgement was entered by the court in April of 2003 after the settlement of a lawsuit between the city and Grand/Sakwa and facilitated the realignment of Adams Road. In exchange for the necessary right-of-way, the city allowed for agreed upon flexible uses and site design for the subject property, said Rochester Planning Director Sara Roediger.

In order for the proposed development to move forward, the city and property owner would need to agree to amend the existing consent judgement, which dictates development issues at the site. City council on Monday, April 23, unanimously approved amending the consent order, allowing for it to be considered by the court.

If approved by the court, Kostal would still be required to submit a full site plan at a later date, which would come before city council for a final approval.