Cedar Rapids continues to experience a manufacturing boom.
Even before Sub-Zero starts operations in its new state-of-the-art manufacturing facility just off Interstate 380, the company is planning another impressive expansion.
Sub-Zero announced a $196.3 million expansion of its new Cedar Rapids facility last month, including the projected addition of 312 jobs. The project will expand the existing $140 million, 600,000-square-foot plant at 10015 Sixth St. SW, which is set for a formal ribbon-cutting in late May. When completed, the facility is expected to employ more than 500 workers.
“They align very well with our advanced manufacturing identity here,” Cedar Rapids Mayor Tiffany O’Donnell said. “And Cedar Rapids, you’re a really easy city to sell. We’re doubling a facility and employment before it’s even officially opened its doors. That’s a win.”
Notably, approximately 115 of the new positions will be filled at a wage above the Iowa Business Incentives for Growth program’s rate of $30.41 per hour.
“Projects like this highlight the importance of having shovel-ready sites and infrastructure in place,” said Cedar Rapids Economic Development Director Mike Lukan. “We’re seeing sustained demand for industrial space, and Sub-Zero’s expansion reinforces that Cedar Rapids is well-positioned to support large-scale manufacturing operations.”
Sub-Zero joins IFF and other manufacturers doubling down on Cedar Rapids and the region. Having a robust manufacturing sector helps buttress the rest of the economy.
Incentivizing nuclear power
We are cautious whenever the government tries to incentivize a specific industry, even one as important as nuclear power. To be clear, we support getting nuclear power back on track in Iowa, and recently passed tax incentives headed to the governor’s desk for her expected signature should help.
But our memory is long, and unintended consequences from legislation can be very real.
Consider the tax incentives provided to solar and wind generation in Iowa over many decades. They created an uneven energy market, inadvertently priced out nuclear power generation and contributed to the closure of the Duane Arnold Energy Center (DAEC) when Alliant Energy bought out an artificially high power purchase agreement with NextEra Energy.
We will not relitigate that decision here. We are focused on the future, and the future of nuclear power in Iowa is bright.
Beyond a potential restart of the DAEC, there could be additional reactors built on that site, including smaller modular reactors. The legislation would provide sales and use tax exemptions for projects to restart a decommissioned nuclear facility, as well as efforts to build new nuclear energy facilities in Iowa.
Rep. David Young, R-Van Meter, said in a news report that he believes the bill will strengthen Iowa’s “all of the above, diverse” approach to energy generation, while also supporting the state’s workforce through creation of a new fund.
Mr. Young is right. That approach is the only wise strategy going forward. Thankfully nuclear power generation is back in that strategy.
