Plumb Supply plans $15M Cedar Rapids expansion

CEDAR RAPIDS — A local plumbing distributor intends to invest $15.2 million into a facility expansion in southwest Cedar Rapids with the help of city-backed financial incentives.

The Cedar Rapids City Council on Tuesday authorized staff to offer a standard tax exemption incentive to Plumb Supply for the construction of a new logistics facility at 4690 Bowling St. SW.

Originally founded in Des Moines, Plumb Supply distributes plumbing pipe; valves and fittings; and heating, air-conditioning and ventilation equipment to plumbers and contractors across the Midwest.

Per a city staff report, the company has a location off J Street SW, “but is looking to expand its operations in Cedar Rapids instead of constructing hubs in other Iowa communities.”

“Plumb Supply has been located in Cedar Rapids since 1979 and has contributed to several significant economic development projects including expansion of the Cedar Rapids airport, QTS and Google data centers (and) the Kingston Yard parking ramp,” the report notes.

Expansion plans call for the construction of a 92,000-square-foot warehouse and logistics building on a currently vacant lot along Bowling Street SW. As a result of the project, 30 jobs will be maintained in Cedar Rapids and another seven will be created.

Construction on the project is slated to begin this spring and wrap up next year.

The project is eligible for financial incentives through the city’s community benefit economic development program, which aims to promote the expansion of existing businesses in targeted industries through a standard 10-year, declining scale exemption of the increased taxes generated by the project.

Based on the investment and estimated value once work is done, the Plumb Supply project is expected to generate $3.1 million in total taxes over a 10-year period, of which $1.2 million would be exempted.

The council on Tuesday also directed city staff to initiate the process of establishing an urban revitalization area for the project — a requirement of the tax exemption program.

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