Michigan-based US service centre chain Alro Steel plans to build a new $20 million distribution centre in southwestern Iowa, Kallanish understands.
Earlier this month, Alro received approval from the city council of Cedar Rapids, Iowa, to receive tax incentives to build a new 199,200 square-foot distribution centre.
According to the project proposal by Alro, the new facility qualifies under the city’s high quality jobs benefit programme, as the centre will create over 40 new jobs. Under the city’s high quality jobs program, projects that create over 10 or more high wage jobs (over $24.20/hour) can receive a tax rebate, with the standard incentive deal being a 10-year, 50% increment tax rebate on the project’s investment.
“We’re attracting a new business to Cedar Rapids, going along with our big emphasis in attracting large warehousing organisations, and Cedar Rapids is really becoming a hub for warehousing on a national basis. And this is a diversified company that we’re bringing into the area,” says council member Scott Overland in support of the project, during a city council meeting.
The Cedar Rapids council estimates the investment will generate $5.2m in new taxes over a 10-year period.
Zach Johnson USA