116 3rd St SE
Cedar Rapids, Iowa 52401
Cedar Rapids City Council awards incentives to build 12 new warehouses
New warehouses will offer a size not currently available in Cedar Rapids
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CEDAR RAPIDS — The warehouse construction boom in Cedar Rapids got another boost last week when the city council approved financial incentives for two developers to assist in building a dozen new warehouses in the southwest quadrant.
380 Commerce Park LLC proposes building three warehouses at 8205 Sixth St. SW. The proposal involves a $15 million capital investment in three buildings on 19 acres.
Two warehouses would be 50,000 square feet each and the other a 120,000 square-foot warehouse.
About 50 new jobs would be created. The phased construction would begin in March, with completion in March 2030.
The project is expected to generate $5.8 million in total taxes over a 10-year period, of which $2.1 million would be rebated to the company.
"These are warehouse sizes not available in Cedar Rapids at this time," City Economic Development Project Coordinator Scott Mather told the council at its Jan. 14 meeting.
Mather said monthly — “if not more often” — the city’s economic development team receives inquires from companies looking for immediately available warehouse space.
“We’ve had to respond back to a few recently where we don’t have a lot of options currently available,” Mather told the council. “Having some of these in place, we feel, will really be a way to provide for growth in our community, to provide opportunities for companies where companies can choose Cedar Rapids and get in relatively quickly.”
The other project approved for incentives is on property along 64th Avenue SW and 26th Street SW, by 1145 Industrial Avenue LLC.
It's expected to be a $21.5 million project with nine warehouses on 19 acres. Seven warehouses would be 11,900 square feet each. The other two would be 70,000 and 60,000 square feet. About 80 new jobs would be created.
Financial incentives would be a reimbursement of some of the increased taxes generated by the project, for 10 years. Mather said the development is estimated to bring about $7 million in taxes, with about $2.4 million rebated.
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