Danisco proposing $22.2M southwest Cedar Rapids plant expansion

CEDAR RAPIDS — Danisco, an ingredients supplier and subsidiary of International Flavors and Fragrances, is seeking state financial incentives through its High-Quality Jobs Program to support its $22.2 million Cedar Rapids plant expansion.

The Cedar Rapids City Council signed off Tuesday on a resolution authorizing the city to sponsor the company’s application for tax credits to the Iowa Economic Development Authority for a proposed expansion of the plant, 1000 41st Ave. Dr. SW.

The proposed $22.2 million investment calls for the construction of a 9,000 square-foot metal building for steam generation. It would create two new jobs, all above the state’s high-quality wage rate. The project is expected to generate an estimated $124,000 in new taxes over five years, with $55,000 being exempted.

The IEDA board will consider the request for incentives at its March 22 meeting.

IFF manufactures enzymes for biofuel production and food, animal nutrition and home and personal care products at its Cedar Rapids site.

“The proposed project will enable on-site steam generation to supply our current operations and allow for future growth opportunities at the Cedar Rapids facility,” IFF spokesperson Paulina Heinkel said in a statement. “The project represents a major capital investment in Iowa and is expected to create additional high-quality jobs in the local community.”

Typically, according to council documents, the city would provide local match funds through a rebate or tax abatement to support the project. But “based on the scope of the project — consisting primarily of machinery and equipment — the taxable value is not expected to increase sufficiently to trigger a tax abatement on the improvements.” Cedar Rapids’ Urban Revitalization statute requires an increase of 15 percent on existing improvements to trigger the city abatement.

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