Brown NationaLease looks to move from North Liberty into new $4 million Cedar Rapids facility

CEDAR RAPIDS — Local developers were awarded city financial incentives this week to build a $4 million Brown NationaLease facility in southwest Cedar Rapids that will create 10 jobs — attracting a company that currently has a location in North Liberty.

TH Development LLC, an entity of Dennis Thompson and Hunter Parks, is looking to build an 11,000 square-foot building on 76th Avenue SW for Brown NationaLease, which currently leases space in North Liberty and is seeking a larger, permanent location because of the company’s growth.

The Cedar Rapids City Council on Tuesday signed off on preliminary terms of the deal, authorizing financial incentives for the project. The developer will receive standard incentives — a 10-year, 50 percent reimbursement of increased taxes. The project is expected to generate $1.4 million in total taxes, of which $523,000 would be rebated.

Currently, the Iowa-based company’s North Liberty facility is located at 2740 Stoner Ct. The truck leasing company offers truck and trailer rental and leasing, contract maintenance and logistics services.

Because financial incentives are involved, the city of North Liberty had to consent to the project under state law. The cities of North Liberty and Cedar Rapids established a joint agreement in July.

The 10 jobs would pay at or above the state’s high-quality wage rate of $26.20 an hour, Economic Development Coordinator Scott Mather said. The new facility will have full drive-thru shop bays, an automated wash bay and office space.

Mather said this company falls under a target industry — transportation and logistics — as identified within the city’s Economic Development Strategic Plan.

The city recently updated its plan with $50,000 in federal American Rescue Plan Act funds to partner with Austin, Texas-based Angelou Economics, which helped form the city’s initial 2014 strategic plan. The consultants determined the city could carve out a greater role in attracting new businesses and workers to Cedar Rapids while supporting those already here.

A development agreement will be brought to council in September or October. Construction is slated to start this fall and wrap up spring 2024.

Council member Scott Olson said there is a lot of traffic on 76th Avenue SW, but the current design is “like an asphalt city.” He encouraged the developer to spruce up the property with landscapings or other items to make it appealing for motorists passing by.

“With this much truck parking and stuff, there’s no landscaping shown,” Olson said. “I think we need to see that.”

On the site, Mather said there is space for some tractor stalls, trailers and only a handful of actual car stalls.

Council member Scott Overland said the creation of more high-quality jobs is “another win for our community and as we continue to create those high-quality jobs, the team effort of getting these projects underway and built is a big plus.”

Brown NationaLease officials have not responded to The Gazette’s requests for comment before publication.

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