New Altorfer headquarters will double existing facility’s space

Altorfer Inc. is planning to build a new corporate headquarters facility in southwest Cedar Rapids that will provide nearly double the space of the construction equipment company’s existing headquarters, Altorfer president Derek Altorfer said. At its Aug. 9 meeting, the Cedar Rapids City Council approved a project term sheet and authorized negotiation of a development agreement with Altorfer Inc. for the company’s new 150,000-square-foot facility, which will be constructed at 8400 Sixth St. SW, north of Wright Brothers Boulevard and west of Interstate 380, according to council documents. The project will comprise a minimum investment of $40 million for a new office, sales and service facility. Construction is set to begin in September and take about a year to complete. The new facility will retain 40 jobs and create 15 new jobs, 10 of which will be at or above the current high-quality yearly wage rate, which currently stands at about $50,000, development director Caleb Mason told the council. Mr. Altorfer said the project will usher in a new era for the company, replacing a headquarters building at 2600 Sixth St. SW. “Our current facility opened around 1955 and was purpose built for the local population and the Caterpillar machine models of that era,” Mr. Altorfer said. “Since then, Cedar Rapids, the Corridor, and Eastern Iowa as a whole has grown immensely. Our customers and Caterpillar’s product line has grown as well. We have been blessed to be able to serve these customers and communities, and thus have simply outgrown our existing facility.” Mr. Altorfer said the new facility will include a larger service shop, allowing more room for technicians to work, and a new parts warehouse will offer more vertical storage. The general office area will utilize an open concept, and a number of huddle rooms and formal conference rooms will be included. Modern tooling and technology will also be brought online to improve service operations, Mr. Altorfer said. The project will be eligible for standard city development incentives, including reimbursement of of up to 50% of the tax increment generated by the facility, subject to maintaining minimum employee levels. Off-site improvements will also be made to facilitate the new development. Altorfer will allow a new road to be routed west of Sixth Street to align with St. Martin Boulevard SW, and as part of intersection improvements, the city will extend a new road to provide access to the new Altorfer facility. Other considerations will include the developer’s cooperation with the city on any potential application for Revitalize Iowa’s Sound Economy (RISE) grant funding, if the city decides to pursue such a grant. Councilmember Tyler Olson, who admitted to having a “soft spot” for family-owned businesses like Altorfer – Mr. Olson is CEO of Paulson Electric, a company in its fourth generation of Olson family leadership – said he’s encouraged that the Altorfer project is contributing to the rapid growth of the southwest Cedar Rapids area. “There's been a lot of attention to new businesses that we've been attracting to the community in that area,” Mr. Olson said. “But it's just as exciting to see homegrown businesses expanding and growing their presence here in Cedar Rapids.” Councilmember Ann Poe also expressed support, but asked about plans for the existing Altorfer facility once the new building is completed. Mr. Altorfer said the company would consider options to redevelop the current property or sell it outright after moving to the new facility. Councilmember Ashley Vanorny also weighed in on the project, noting that the city is accumulating a lot of empty buildings along Sixth Street SW even as a roadway reconstruction project nears completion. “with all the pedestrian investments that we have there … we’ve talked about a strategic goal of to look at some redevelopment opportunities, (and maybe that's what pushes us over the cliff with that specific area and reimagining it,” Ms. Vanorny said. Ryan Companies is serving as the general contractor and architect for the Altorfer project, Mr. Altorfer said. Altorfer is a dealer for Caterpillar construction and agricultural equipment, as well as a number of other equipment manufacturers. The company, founded in 1957, now has 35 locations in 26 cities in Iowa, Illinois, Indiana and Missouri.