State approves tax credits for Intermec, Raining Rose projects

CEDAR RAPIDS -- Two Cedar Rapids companies planning to construct new facilities have been approved for state tax credits for building on former brownfield sites.

The Iowa Economic Development Authority Board on Thursday granted a $500,000 tax credit to Intermec Corp. for a $10.5 million, 78,000-square-foot building at at 601 Third St. SE. The two-story building, which will house about 250 employees and host many of the Everett, Wash.-based company's engineering functions, will  replace the company's existing location at 550 Second St. SE.

Intermec's building will be constructed on the site of a concrete plant that relocated  in May 1995 to southwest Cedar Rapids.

Priority One and city officials have been in talks with Intermec representatives for close to two years about the Everett, Wash.-based company's electronics research and development facilities in Cedar Rapids. When the project was announced in July, Intermec Pat Byrne, president and CEO of Intermec, said the new Cedar Rapids facility will be a world-class design and testing center .

Raining Rose, a producer of natural body care products at 407 Ninth Ave. SE, also was approved for a $500,000 tax credit for a $13 million, 122,000-square-foot two-story headquarters and manufacturing facility at 3015 First Ave. SE. The project, which will retain 97 jobs and create 15 new positions, will be located on the site of a former LaPlante-Choate/Allis Chalmers heavy equipment plant.

Chuck Hammond, owner, president and CEO of Raining Rose, said the new building will allow for consolidation of manufacturing functions and future growth.

"We're currently spread out over three separate locations," Hammond said. "Being under one roof will allow for even greater productivity and improved customer service."

Debi Durham, director of the Iowa Economic Development Authority, was particularly pleased with plans for the Raining Rose headquarters and manufacturing plant.

"The thing that was so compelling about the Raining Rose project is that the company is planning a LEED-certified building at the silver level," Durham said. "I think that was really an added bonus. Both the Intermec and Raining Rose facilities are great projects."

Dennis Jordan, vice president of economic development for Priority One, said the tax credits received by Intermec and Raining Rose amounted to 20 percent of the state's total pool for brownfield projects. Jordan said the companies have the option of selling the tax credits, which are currently fetching about 88 cents on the dollar.