Business

Iowa Fluid Power to expand by 45,0000 square feet at Blairs Ferry Cedar Rapids facility

FILE PHOTO: The “chain jack” assembly that helps lift a tension chain anchored to the ocean floor to a floating oil platform at Iowa Fluid Power in Cedar Rapids. (Photo Courtesy of Iowa Fluid Power)
FILE PHOTO: The “chain jack” assembly that helps lift a tension chain anchored to the ocean floor to a floating oil platform at Iowa Fluid Power in Cedar Rapids. (Photo Courtesy of Iowa Fluid Power)

Fluid-power products distributor Iowa Fluid Power plans to expand its Blairs Ferry Road NE facility by 45,000 square feet.

The project, in connection with sibling companies Electro-Hydraulic Automation and Blairs Buildings LLC, is valued at $5.7 million.

Expansion of the 1610 Blairs Ferry Rd. NE site is set to start next month, with completion anticipated in August. The expansion will include the former driving range at St. Andrews Golf Course.

The addition will give IFP and Electro-Hydraulic Automation increased research-and-development space for large-scale projects and double its manufacturing and warehouse capacity, the company said in a news release.

The project will create 12 new jobs in engineering, sales engineers and other technically skilled positions, the release said.

The company, which distributes products such as hydraulic and pneumatic valves, pumps and cylinders, employs 100 in Cedar Rapids and another 43 including its operations in the Twin Cities, Kansas City, Kan., and Houston.

IFP on Tuesday will ask for a 10-year tax break from the city of Cedar Rapids, for an annual exemption that would be 44 percent on the increased property value. City Council will consider the request under its local match economic development incentive.

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The city estimates $355,000 in total taxes would be exempted over 10 years. IFP would pay $1.3 million in taxes over that time.

IFP would invest $5.75 million on the project, which includes $1.75 million on construction, $1.1 million on machinery and equipment and $2.9 million on research and development, according to City Council documents.

The city also is expected to approve sponsorship of a state financial assistance application, which will be reviewed by the Iowa Economic Development Authority Board on Friday.

State financial assistance primarily would be in the form of state tax credits. The Cedar Rapids Metro Economic Alliance assisted in preparation of the state application.

The project is contingent on regulatory and governmental approval and financial assistance.

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