C.R. approves tax break for downtown project

CEDAR RAPIDS - The City Council last night unanimously asked the city manager to finalize a development agreement with local employer Intermec Technologies Inc., which will give the company a property-tax break over 10 years in exchange for a $12.5 million investment in a new two-story building at 601 Third St. SE downtown.

Construction is slated to start in April and be complete in June 2013, Jennifer Pratt, a planner in the city's Community Development Department, told the council last night. She said the company's “total project cost” is $28 million. Intermec will move from its nearby spot at 550 Second St. SE.

Council members Don Karr and Pat Shey said the Intermec project would be converting an empty lot into a new building that would bring in $2.2 million in property-tax revenue over 10 years, while keeping at least 200 high-paying engineering and related jobs in the downtown.

“Thank you, Intermec, for staying in our community,” Karr said.

Shey emphasized that the city wasn't writing Intermec a big check up front. Rather, Intermec will pay the estimated $2.2 million in new property-tax revenue over 10 years to the city, and the city will reimburse the company half of the revenue.

Intermec makes rugged mobile and handheld computers used in warehouses and elsewhere for inventory control.