116 3rd St SE
Cedar Rapids, Iowa 52401
CEDAR RAPIDS — The rapidly growing southwest quadrant of Cedar Rapids is slated to see even more of an uptick in warehouse construction, thanks to the area’s shovel-ready land and easy access to transportation through the airport and highway network.
The Cedar Rapids City Council this week approved tax incentives for two new warehouses in the Midwest Commerce Park from local developer Tiffany Earl Williams.
The projects are a 50,000-square-foot building at 655 Capital Dr. SW, which would be leased by Hy-Vee for a warehouse and distribution facility, and a 100,000-square-foot building at 10025 Atlantic Dr. SW for the headquarters of Worley Warehousing.
Economic Development Manager Caleb Mason said the Hy-Vee facility would be an $8 million capital investment, which the company will use as a bakery and distribution site.
Mason said the project qualifies under the High-Quality Jobs program. It would create 30 new jobs, 10 of which must be at or above high-quality wage rate of $24.20 per hour.
The standard incentives are a 10-year, 50 percent reimbursement on the increment taxes generated by the project subject to meeting employment requirements. Over 10 years, city staff estimate the development would generate $1.1 million in taxes, of which $465,000 would be reimbursed over the 10-year period subject to Hy-Vee meeting the employment requirements.
The Worley Warehousing development, a $10.9 million investment, also qualifies for incentives under the High-Quality Jobs program.
Mason said the project would retain 20 jobs from the existing headquarters on Southgate Court SW, and create 10 at or above the high-quality wage threshold.
City staff estimate it would generate $2.2 million over 10 years, with approximately $902,000 reimbursed over that period.
Mason said development agreements would come to the City Council in July.
Council member Scott Overland said the projects show the city’s local investment in warehousing is paying off.
“It’s leading to more and more projects, and this is a really big deal for Cedar Rapids to continue to build these warehouses in our city and creating incrementally 20, 30 new jobs at the high-quality wage level,” Overland said.
The council also signed off on a development agreement with Michigan-based Alro Steel Corp. to build a regional distribution facility.
According to the agreement, developer FH Development LLC would build a $20 million, 199,200 square-foot office, warehouse and distribution building at 9400 Earhart Lane SW for Alro., a company that would be new to Iowa.
The project qualifies under the city’s High Quality Jobs economic development program. The development is expected to create 40 jobs, with at least 10 positions at or above the wage threshold.
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