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Sub-Zero awarded millions in city, state tax incentives to build $140.6 million Cedar Rapids facility
Manufacturing facility will be appliance company’s fourth in U.S., adding 192 full-time jobs to Linn County

Jun. 17, 2022 11:14 am, Updated: Jun. 17, 2022 4:51 pm
Cedar Rapids City Hall is seen photographed on Wednesday, Dec. 2, 2020. (Andy Abeyta/The Gazette)
Wisconsin-based refrigeration and high-end appliance company Sub-Zero this week was awarded millions in city and state incentives to build a $140.6 million light manufacturing facility in Cedar Rapids that would add nearly 200 full-time jobs and bring a new company to Iowa.
The Iowa Economic Development Authority board Friday unanimously awarded $2.56 million in investment tax credits and sales and use tax credits to Sub-Zero to build a 400,000 square-foot building at 10015 Sixth St. SW, near The Eastern Iowa Airport.
The state also approved giving Sub-Zero a $1.135 million forgivable loan at the end of a seven-year contract period, contingent on the local match of a 20-year, 75 percent tax break on the increment value generated by the project — an estimated net present value of $15.4 million. The Cedar Rapids City Council approved those incentives this week, subject to meeting employment thresholds.
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A term sheet outlining preliminary points of a deal with the company calls for a minimum investment of $90 million in property and improvements, and $50.6 million in machinery and equipment.
Once built, the project will result in the creation of 192 full-time jobs, 127 of which would be paid at or above the high-quality rate of $24.20 an hour. The development would add more than $11.8 million to the annual payroll in the community, according to the city.
Work is expected to start in August 2023 and wrap up by August 2025. Sub-Zero will begin hiring in the fourth quarter of 2022, according to the IEDA, but the company has until December 2026 to reach the employment thresholds required to receive incentives.
“This is a major accomplishment for the city,” City Manager Jeff Pomeranz recently told The Gazette. “We feel very excited about welcoming Sub-Zero to our community. They’re going to be a great employer for the city, and we look forward to a long relationship with them. This is a major step to bring this company to our city.”
Scott Wareing, the senior vice president of operations and product design for Sub-Zero, said this week the third-generation, family-owned company has three large manufacturing plants around the United States that have burgeoned and are full.
Sub-Zero has three brands — Sub-Zero refrigerators, Wolf ovens and ranges and Cove dishwashers.
“We are seeking a new location to add footprint that essentially will give us the next leg of our journey,” Wareing said.
He said the city offers an “incredible package,” financially and with a people-centered community and business climate, that made a compelling case for Sub-Zero to locate here.
“We’re excited about it because we believe it’s a phenomenal fit for us, for you in terms of the culture — who you are, who we are,” Wareing said. “We’re excited about the manufacturing base and focus that you all have continued to build upon and expand.”
City Economic Development Manager Caleb Mason said staff will bring a development agreement forward to council in August.
“Cedar Rapids makes stuff, and we’ve always made stuff from the time of our founding,” council member Scott Overland said this week. “ … It’s a huge welcome to Sub-Zero to join the myriad of companies in Cedar Rapids that make stuff.”
Site selection consultants for Sub-Zero first reached out last December, Mason said. The city and other partners, including the IEDA, Cedar Rapids Metro Economic Alliance, Alliant Energy and Kirkwood Community College, collaborated on site visits and efforts to recruit the company.
Private sector business leaders also championed the region during those visits, Economic Alliance Executive Director Doug Neumann said in a news release.
“So many people are involved in an effort like this,” Neumann said. “Congratulations to all on this success. It demonstrates again the importance of constantly pursuing business attraction and business expansion projects to keep our economy marching forward.”
The addition of Sub-Zero marks the third-consecutive year Cedar Rapids has landed a project exceeding $100 million — all located in the rapidly growing southwest quadrant.
Cedar Rapids has attracted growing manufacturing, warehousing and logistics and distribution companies, among others, in this part of town thanks to easy access to the airport and the rail and highway networks.
The other major investments nearby, slated to wrap up this year, include a $108.6 million, 479,000-square-foot FedEx Ground distribution center on Commerce Park Drive SW, as well as a 200,000-square-foot classified defense aerospace facility worth more than $170 million from multinational aerospace company BAE Systems.
To accommodate growth stemming from these projects and new housing construction, the Iowa Department of Transportation earlier this week accelerated plans to reconfigure an interchange at Interstate 380 and Wright Brothers Boulevard SW.
Comments: (319) 398-8494; marissa.payne@thegazette.com