This story is a part of the CBJ’s Newsmakers edition. This year-end wrap-up from the staff of the Corridor Business Journal is a compilation of the year’s most noteworthy articles and projects, as told through stories that appeared in the bi-weekly issues of the CBJ. This story was originally published in March 2023. _________________________________________________________________________ The […]
Already a subscriber? Log in
Want to Read More?
Get immediate, unlimited access to all subscriber content and much more.
Learn more in our subscriber FAQ.
- Unparalleled business coverage of the Iowa City / Cedar Rapids corridor.
- Immediate access to subscriber-only content on our website.
- 26 issues per year delivered digitally, in print or both.
- Support locally owned and operated journalism.
Do you want to read and share this article without a paywall?
Click here to purchase a paywall bypass linkThis story is a part of the CBJ’s Newsmakers edition. This year-end wrap-up from the staff of the Corridor Business Journal is a compilation of the year’s most noteworthy articles and projects, as told through stories that appeared in the bi-weekly issues of the CBJ.
This story was originally published in March 2023.
_________________________________________________________________________
The Iowa Economic Development Authority (IEDA) Board announced March 17 that Collins Aerospace’s planned $22 million expansion project in Cedar Rapids will receive $1.85 million in tax benefit grant funds through the state’s High Quality Jobs Program.
The project, with a minimum investment of $22 million, involves developing and manufacturing microchips in an existing building on the Cedar Rapids campus of Collins Aerospace, Cedar Rapids’ largest employer.
The budget for the project includes $9.5 million for building renovation and $12.5 million for machinery and equipment.
The tax credits approved by the IEDA board March 17 included $1.54 million in investment tax credits, amortized over five years, and $285,000 in refunds for sales, service or use taxes paid during construction. The award was also contingent upon application sponsorship and approval of a local match by the city of Cedar Rapids.
That local match, $1.05 million, was approved by the city council March 14, in the form of three consecutive annual economic development incentive payments of $350,000 each, from August 2025 to August 2027, from the Rockwell Collins Urban Renewal Area’s TIF fund. The standard 10-year schedule for those payments will be consolidated for completion before the TIF district expires, economic development manager Caleb Mason told the council.
As part of the plan, an existing 20,000-square-foot light industrial building will be renovated, including modernization and environmental controls, to create a 6,000-square-foot class 100/1000 clean room, safe chemical storage and handling, water treatment, a 5,000-square-foot plating area, and associated equipment and furnishings.
The Cedar Rapids City Council approved a resolution March 14 on a term sheet for the project, as well as authorizing sponsorship of a financial assistance application for state incentives through the IEDA’s High Quality Jobs Program.
City council documents indicate the project will allow the company to “develop and manufacture microelectronic (microchip) technologies for Collins Aerospace communications products and positions (the company) for future growth into adjacent commercial and defense markets.”
The renovation is set to begin in April and be completed by January 2026.
As part of its agreement with the city, Collins Aerospace will retain 25 existing employees and create at least 16 more full-time positions. The 41 positions will be paid an average of $30.24, well above the current High Quality Jobs Program threshold of $25.20 per hour, according to the IEDA grant announcement.
