Business

Developments in Cedar Rapids, Pella awarded state tax credits

Future Line plans to build a 30,000-square-foot facility connecting its truck equipment facility on Fourth Street SW and its aluminum manufacturing space on Sixth Street SW, with construction projected to wrap up in December 2019. (Fusion Architects, Future Line)
Future Line plans to build a 30,000-square-foot facility connecting its truck equipment facility on Fourth Street SW and its aluminum manufacturing space on Sixth Street SW, with construction projected to wrap up in December 2019. (Fusion Architects, Future Line)

Projects with ties to Cedar Rapids and Tipton were among those the Iowa Economic Development Authority issued state tax credits.

At its Friday meeting, the authority awarded Future Line, a Cedar Rapids-based truck equipment provider, tax benefits valued at $191,500 through the state’s High Quality Jobs program.

Future Line aims to build a 30,000-square-foot facility by December, connecting its truck equipment facility on Fourth Street SW and its aluminum manufacturing space on Sixth Street SW.

The company said the move will create new manufacturing space and help it begin a new contract parts manufacturing division.

Cedar Rapids City Council also last week approved a 10-year declining scale tax exemption averaging 44 percent per year for Future Line.

Its facility is estimated to increase the site’s assessed value from a current $452,700 to $2.4 million, city documents show. The property would generate $905,730 in gross taxes over the 10 years, with $310,630 exempted over that period, for a net $595,100 in taxes the developer will pay.

City officials are slated to establish an urban revitalization area at the site in the near future.

The Iowa Economic Development Authority also approved disaster relief assistance, through tax benefits worth $5.8 million, for Vermeer Corp., a Pella-based industrial and agricultural equipment manufacturer with facilities in Tipton.

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A July 2018 tornado resulted in the “complete loss” of two Vermeer manufacturing plants, and the company will carry out a $137.3 million project to rebuild through July 2021.

Also, Coralville-based VIDA Diagnostics, which provides pulmonary imaging diagnostics software, was awarded a $500,000 expansion loan from the Iowa Innovation Acceleration Fund, for hiring key personnel, market planning and product refinement.

l Comments: (319) 398-8366; thomas.friestad@thegazette.com

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