Apache Hose and Belting Co. gets property-tax break for expansion

CEDAR RAPIDS - The City Council on Tuesday approved the creation of a new urban renewal area for Apache Hose and Belting Co. and awarded the company a property-tax break for its proposed $7.31-million expansion plan.

In trade for the development incentive, Apache also has said it will create 15 new jobs.

According to city figures, the city incentive will allow the company to forego 64 percent of the property taxes on the company's new investment over 10 years, which will equate to an estimated savings to the company of $683,702. Over the ensuing 10 years after the incentive expires, the company's expansion is expected to bring in a total of $1 million in new property-tax revenue, Kirsty Sanchez, a planner with the city, told the City Council.

Apache also is receiving a sales-tax refund of $136,800 and $108,750 in job training funds from the state of Iowa. according to the city.

Sanchez said Apache had received and turned down a 'competitive incentive” to expand its business to a location outside of Cedar Rapids and Iowa.