Manufacturing zipper bag company will get $400,000 in tax incentives from Marion

A manufacturing company breaking ground this fall in Marion that produces press to close zipper bags for bulk food, pet foods and lawn care may get $400,000 in tax incentives from the city.

The Marion City Council discussed Tuesday during a work session the tax increment financing for ElPlast America, which is the first tenant of the 181-acre Marion Enterprise Center and plan to start construction of a 60,000 square-foot plant in October. The project will be built in two phases.

ElPlast, based out of Zory, Poland, manufactures large zipper bags commonly used by bulk food, pet food, lawn care and pharmaceutical businesses, George Lake, president of the Marion Economic Development Co. (MEDCO), said. The plant will open in 2014 with 39 employees and increase to about 70 in the second phase of production.

Marion City Manager Lon Pluckhahn told the board the series of tax increment financing payments will be paid to a holding company over the next six years or so for the cost of the property. There will also be a cash economic grant paid to MEDCO for $100,000, which it will help finish the planning process of the property.

Tax increment is a tool used in economic development that allows cities like Marion to use projected taxes to finance current improvements.

Mayor Snooks Bouska said this kind of “creative financing” was necessary to start the development of the enterprise center. He didn't see a downside.

No other board members had concerns about the tax incentives for ElPlast.

Lake said in a previous Gazette interview that ElPlast serves over 700 customers in 70 different countries. He said the company's product is familiar to many Eastern Iowa consumers.

The manufacturing plant will be next to the airport property, Lake said.

The board will officially approve the tax incentives Thursday during the regular board meeting.