Plumb Supply Company is planning a new $15.2 million logistics and warehouse facility in Cedar Rapids, the Cedar Rapids City Council learned at its meeting Jan. 27.
Cedar Rapids business attraction program manager Scott Mather told the council that Plumb Supply will be constructing a new, 92,000-square-foot warehouse and commercial logistics building at 4690 Bowling St. SW. The vacant lot lies between Interstate 380 and Bowling Street SW, just north of Highway 30.
Plumb Supply already has two locations in Cedar Rapids, at 4700 J St. SW and 1716 Blairs Ferry Road NE, but Mr. Mather said the company wants to “expand operations in Cedar Rapids rather than constructing smaller hubs” elsewhere in the state.
The project, which will retain 30 existing jobs and create seven new jobs, qualifies for incentives under the city’s Community Betterment economic development program, designed to aid the expansion of existing business in targeted industries.
Those incentives, Mr. Mather said, provide a 10-year decline scale exemption of the increased taxable property value generated by the project. Based on the investment and estimated post-development value, the new facility is estimated to generate $3.1 million in total taxes over 10 years, of which $1.2 million would be exempted, he said.
Construction of the project is expected to begin in April and be completed by May 2027, according to council documents.
The council approved a resolution of support for the project Jan. 27, and an urban revitalization area is set to be established in March.
Plumb Supply, which specializes in plumbing, HVAC supplies, countertops and cabinets, was established in Des Moines in 1946 and expanded to Cedar Rapids in 1979, when the company acquired the Chandler Company, which then had branches in Cedar Rapids, Iowa City and Ottumwa.
The company, headquartered in Des Moines, operates a total of 32 facilities across Iowa and Missouri.
