Iowa Economic Development Authority gives final approval for Google, Danisco Inc. facilities

The Iowa Economic Development Authority (IEDA) unanimously approved Google’s financial incentive package March 22, clearing the way for the multinational technology giant to construct a $576 million data facility in southwest Cedar Rapids. “We've been working on this project a significant period of time. I've personally been involved in it five years plus, and we're very excited,” said Cedar Rapids manager Jeff Pomeranz, during the public comment period. “We think it's going to make a real contribution to the city of Cedar Rapids, to the region, and state.” The facility will add 31 new jobs and is filed under the High-Quality Jobs program, but only for a tax abatement of $56 million on a 20-year sliding scale. During the same meeting, the IEDA board also approved an investment tax credit of $174,865, and a sales and use tax refund for $234,651 for Danisco Inc., a subsidiary of International Flavors & Fragrances. The manufacturer is planning a a $22.2 million, 9,000 square foot facility in southwest Cedar Rapids, where it will install a new steam generation plant. The award was approved by the board with the caveat that a contract would be issued upon the confirmation of good standing by the Iowa Department of Revenue. The city of Cedar Rapids will provide a 427b property tax abatement for improvements on the property as well. “They’re growing, and just a great corporate citizen of the city of Cedar Rapids,” said IEDA board member Lisa Shimkat. Google: Last updated March 21 by Richard Pratt: Google has been identified as the company developing a monumental data center project in southwest Cedar Rapids – a project that, with a minimum investment of $576 million, will likely become the largest economic development project in the city’s history. Previously, the project had only been identified as being developed by Heaviside LLC, but an agenda for the Iowa Economic Development Authority board meeting, set to begin at 9 a.m. Friday, now lists the technology behemoth “Google LLC” as the company that will own and operate the project. The project would also include the addition of at least 31 full-time employment positions, all at or above the high-quality wage rate, which was $24.20 per hour in Linn County as of 2022. Under the development agreement submitted to the city of Cedar Rapids, Heaviside LLC plans to develop “one or more” data centers in the Big Cedar Industrial Center, near the intersection of 76th Avenue and Edgewood Road SW – a project that would subsequently be owned and operated by Google. Construction of the project is expected to begin within three years of the effective date of a final development agreement. The project would comprise the first development in the Big Cedar Industrial Center, Iowa’s largest industrial site at 1,391 acres, which includes an 890-acre parcel designated as the state’s only certified Mega-Site. Read more here. International Flavors and Fragrances: Last updated March 13 by Richard Pratt: International Flavors and Fragrances is seeking state funding support for a $22.2 million expansion of its plant in southwest Cedar Rapids. Danisco US Inc., a subsidiary of International Flavors & Fragrances (IFF), is applying for funds from the state’s High-Quality Jobs program to support the project, and the Cedar Rapids City Council approved a resolution of support authorizing sponsorship of the application as part of the council’s consent agenda March 12. The project itself will involve construction of a new 9,000-square-foot metal building at IFF’s manufacturing facility, 1000 41st Ave. Dr. SW, to “enable on-site steam generation to supply our current operations and allow for future growth opportunities at the Cedar Rapids facility,” said an IFF company spokesperson. “The project represents a major capital investment in Iowa and is expected to create additional high-quality jobs in the local community,” the spokesperson added. The application indicates the project will include the creation of two new jobs at or above the area’s high-quality wage rate. The project is expected to generate an estimated $124,000 in new property taxes over the next five years, with $55,000 being exempted, according to council documents. Read More here.