CEDAR RAPIDS — Two separate companies are eyeing southwest Cedar Rapids for new warehouses, but whom they’re for has not been disclosed.
On Tuesday, the Cedar Rapids City Council will review a proposal for two warehouses of different sizes to be built on Atlantic Drive SW, east of the airport.
The warehouses would be for different businesses, one of which would be new to Cedar Rapids, according to the council’s agenda. The agenda does not say who the companies are, but the projects would be eligible for a city incentive program.
The warehouses include:
l A $395,000, 6,000-square-foot space at 9917 Atlantic Drive SW. The tenant, new to the city, would employ 12 people there.
l A $1.95 million, 42,600-square-foot one at 9920 Atlantic Drive SW. The tenant would employ 17.
The projects are eligible for a 10-year, 50-percent reimbursement of the new taxes that would be collected once the businesses are operational. Combined, the two warehouses are expected to generate about $764,750 in new taxes over 10 years.
To get the incentives, 20 of the 29 to-be-created jobs would have to pay at least $20.76 an hour.
Tiffany Earl Williams, a real estate broker with Skogman Commercial Group and the registered agent for companies that currently own the properties, said she could not disclose the future tenants of the warehouses.
She said construction on the warehouses is expected to begin this year.
Caleb Mason, an economic development analyst for the city, said a formal development agreement would come before the city at a later date. At that stage, the tenants should become known publicly.
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Once built, the Atlantic Drive projects would join a number of others near the intersection of Wright Brothers Boulevard and Interstate 380. Lil’ Drug Store, for example, is constructing a new distribution center and Pilot Travel Centers is building a new truck stop.
The city and state also want to turn hundreds of acres of land near the Eastern Iowa Airport into an industrial business park.
“There seems to be a lot of momentum in that general area and it’s all coinciding at the same time,” Williams said.
SKOGMAN HQ REQUEST
The City Council also will review an incentive request from Skogman Cos. for the real estate company’s planned new headquarters at 427 First Avenue SE.
Skogman wants to build a new, three-story headquarters downtown. Construction of the $11 million project would require the demolition of three other buildings, including the historic Bever Building.
The project is eligible for a 10-year, 50 percent reimbursement of the increased taxes it would generate, a value of about $800,000, according to city documents.
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