116 3rd St SE
Cedar Rapids, Iowa 52401
Ingredion seeking city incentives for $48.5 million expansion of Cedar Rapids facility
The work includes an upgrade of the facility’s starch flash dryer technology
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CEDAR RAPIDS — Ingredion Inc., is planning to spend $48.5 million to upgrade and expand its Cedar Rapids facility, and it has asked the city for incentives.
The Cedar Rapids City Council on Tuesday approved a resolution to support the company’s application for assistance through the High-Quality Jobs program at the Iowa Economic Development Authority, and confirms local match funds.
The resolution also authorizes negotiation of a development agreement with the company. It is the first step in getting the agreement process started.
The expansion would take place at Ingredion’s existing processing facility, 1000 First St. SW, which manufactures sweeteners, starches and other ingredients. The company is planning to update its starch flash dryer technology, “which will significantly increase their efficiency and capacity to delivery starch products to their customers,” according to city council documents.
In addition to the minimum investment of $48.5 million, the proposed development agreement would require Ingredion to:
- Build three new industrial buildings totaling 10,000 square feet;
- Install a new starch flash dryer;
- Create four new jobs; and
- Retain eight jobs at or above the high quality jobs threshold.
In exchange, the city would provide standard incentives of a 10-year, 50 percent rebate of increased taxes generated by the project. Based on the investment and estimated value once work is done, the project is expected to generate $5.1 million in total taxes over a 10-year period, of which $750,000 would be rebated to Ingredion.
Construction could begin in April with completion in October 2026.
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