116 3rd St SE
Cedar Rapids, Iowa 52401
Unnamed company looks to build $576 million data center in Cedar Rapids
Company seeks city, state incentives for what could be largest development in city’s history
CEDAR RAPIDS — An unnamed company is seeking city and state financial incentives to build a massive $576 million data center in the Big Cedar Industrial Center that would create at least 31 new high-paying jobs.
In the coming weeks, the Cedar Rapids City Council is slated to consider a development agreement with Heaviside LLC for the project to build one or more data centers along 76th Avenue SW and Edgewood Road SW in the Big Cedar Industrial Center.
While Heaviside is named, the company that will occupy the development is not.
The city in recent years has awarded incentives to build massive warehouses and other buildings in the rapidly growing southwest quadrant, including Kitchen appliance company SubZero’s $140.6 million light manufacturing building, FedEx’s new $108.6 million distribution center and BAE Systems’ $139 million classified defense aerospace facility that employs 800.
But the data center project, if approved, could surpass even those major investments and would be among the largest — if not the largest — economic development project in Cedar Rapids history.
The proposed development would create 31 new full-time employees paid at or above the high-quality wage rate. Construction is anticipated to start within three years of the development agreement taking effect
An 890-acre certified portion of the overall Big Cedar site is Iowa's first mega site, which offers hundreds of acres of development-ready land to potential developers. All 1,391 acres are controlled by Alliant Energy.
Incentives
Under the terms outlined in council documents, the company could receive a 20-year, 70 percent tax exemption so long as it meets employment thresholds and the high-quality job application is approved. The earliest Iowa Economic Development Authority board meeting where that would be considered is March 15.
If it’s not approved, according to council documents, “the city agrees to work in good faith to provide comparable Tax Increment Financing (TIF) rebates in lieu of the tax exemption.”
To attract the massive data centers that have invested billions in Iowa from tech companies, including Google, Facebook and Microsoft, the Iowa Economic Development Authority pitches Iowa on its website as having “affordable and ample wind energy, a stable grid, a high density of telecommunications infrastructure and low costs for construction projects.”
Other financial incentives include:
- A 20-year, 75 percent economic development rebate of franchise fees collected by Cedar Rapids through the electrical provider for each data center constructed.
- A monthly credit of $1.30 per cubic feet of gray wastewater discharge, provided by the city. Per-unit credit would escalate each year at 2.5 percent, up to 57 percent for per-unit sewer discharge rate.
- The company would give annual community betterment payments to the city “to increase economic development activities, including growth of amenities and infrastructure.” There would be yearly payments of $400,000 per data center for 15 years with a maximum of $6 million per data center — $36 million total.
- The company would provide necessary easements to serve the site, including extension of utilities. The developer must cooperate with the city on any potential Revitalize Iowa’s Sound Economy (RISE) grants, if the city is eligible and applies for one.
The council in August rezoned the land west of Edgewood Road SW and north of 76th Avenue SW from light industrial and agriculture to general industrial, as requested by Alliant, seemingly paving the way for this project.
Another project?
Another project could be in the works there after the council in January rezoned a large portion of Big Cedar to accommodate intensive industrial users. A 245-acre parcel on the western side of the site — north of 76th Avenue SW and west of Tissel Hollow Road SW — was rezoned from agricultural district to general industrial district.
Comments: (319) 398-8494; marissa.payne@thegazette.com
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