Tax incentive plan for Cedar Rapids company gains city council support

CEDAR RAPIDS - The Cedar Rapids City Council gave preliminary approval to financial incentives that should help a Linn County food recycling company rise from the ashes after fire destroyed the national company's Iowa facility last fall.

The council on Tuesday discussed a partial tax exemption for a proposed 61,000-square-foot industrial facility for ReConserve of Iowa, a company that processes grain-based food waste - such as bread, cereal and cookies - into registered ingredients for livestock feed.

The project is planned for land near the intersection of 60th Avenue SW and Edgewood Road SW and is to replace ReConserve's former facility outside Anamosa. That facility was destroyed by fire in October 2015.

Final council approval is to come after three full readings of the proposal, likely in October, said Jennifer Pratt, the city's community development director.

City Council Member Scott Overland described the new facility as a great addition to the city.

'Assuming everything works out, that's going to be a perfect spot for that,” he said.

Pratt said the city's investment, which comes in the form of exempting a portion of the site's property taxes, is estimated to be more than $580,000 over 10 years.

Tuesday's city council approval - made through the city's Local Match Program - was for a sponsorship tied to ReConserve's application for state funds through the Iowa Economic Development Authority. The city dollars is to help leverage nearly $250,000 in tax credits through the State's High Quality Jobs program, according to city documents.

ReConserve's more than $12 million project is to bring 24 new jobs to Cedar Rapids, according to city documents.