Lil' Drug Store expansion gets state incentives
Three Corridor start-ups also received funding
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A new headquarters and distribution center for Cedar Rapids-based Lil’ Drug Store Products will officially move forward after receiving state incentives.
The Iowa Economic Development Authority approved providing the company with $586,000 in tax credits and refunds Friday.
Lil’ Drug Store plans to construct a 100,000-square-foot distribution center in southwest Cedar Rapids. The company sells trial- and travel-sized health and beauty products to gas stations and convenience stores.
The project will cost more than $13 million and see the company move about 11 miles south from its current location, 1201 Continental Place NE. The new office and distribution center will be built along an extension of Earhart Lane SW, just east of Interstate 380 and south of Wright Brothers Boulevard.
Construction is expected to start in June and finish by July 2018.
In exchange for state incentives, Lil’ Drug Store is required to create 11 new jobs, eight of which must pay at least $24.70 an hour. The city of Cedar Rapids is expected to provide about $1.5 million through a tax increment financing rebate.
The Iowa Economic Development Authority also awarded more than $2 million in incentives to Dubuque-based Flexsteel for a new factory.
Flexsteel, a furniture manufacturer, said last year it would shutter its existing Dubuque factory. It since has reached a deal with the city to demolish the old plant and build a new one, keeping at least 200 employees.
The project is expected to cost more than $35.6 million. The city of Dubuque plans to provide about $9.75 million in financial help.
Construction of Flexsteel’s new factory should be finished in October 2018.
Three Corridor start-ups received loans from the authority Friday:
l North Liberty-based cybersecurity company ProCircular was awarded $100,000.
l Coralville-based Voxello, which has developed a device to help patients communicate, was awarded $250,000.
l Coralville-based Innovas Technologies, which offers tube-cleaning systems, was awarded $100,000.
l Comments: (319) 398-8366; firstname.lastname@example.org