CEDAR RAPIDS – The Cedar Rapids City Council on Tuesday granted International Paper a tax break to invest in a $103 million Cedar River Mill expansion that the company says will save 240 jobs in the city and create more jobs.
International Paper wanted to build a 20,000 sq. feet to house a boiler and water treatment plant on the same campus as its existing building at 4600 C St. SW. The project will retain jobs and create seven new jobs, all of which meet the $25.20 an hour quality wage threshold, according to the city.
The proposal includes the construction of a new building and the installation of a natural gas boiler and water treatment plant to provide steam power to the facility. Electricity used to be provided by the coal-fired Prairie Creek Power Station, which is closing.
International Paper is a fiber manufacturer that produces packaging materials and pulp for diapers, paper towels and other personal care products. He has been with Cedar Rapids since 1995.
“This is critical to International Paper’s continued operations,” said Scott Mather, the city’s economic development coordinator.
The new building will face Highway 30 and Southwest C Street. Of the $103 million capital investment, $20 million will be used for building expansion and $83 million for machinery and equipment.
The standard incentives under the city’s plan include a 10-year regression exemption from the value added created by the project. Based on the proposed investment, the city estimates that the project will generate $2.337 million in new tax revenue over 10 years, of which $961,000 will be exempt.
The Board of Directors of the Iowa Economic Development Authority plans to consider state awards under its Quality Jobs Program at its Jan. 20 meeting.
“Over the past several months, the city has been working with International Paper and the state on this proposed steam retrofit project,” city manager Jeff Pomeranz said in a statement. “Developing and supporting local industry is an integral part of the city’s economic development strategy, and we thank International Paper for offering a significant investment in the Cedar Rapids facility.”
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City Councilman Scott Olson said it was interesting to see the investment when the company would have preferred to leave the city following the decommissioning of Prairie Creek.
“I think it’s an exciting project,” Olson said. “…I’ve always been amazed at how busy this place is and how much cardboard they recycle. It’s really a very unique project and the city has become a leader in this type of process.”
Committee member Ashley Vanorny, who represents District 5, which covers most of the Southwest Quadrant, said the company takes pride in the safety of its employees and workers, and she is proud of what International Paper brings to Cedar Rapids.
“It’s an anchor company in Cedar Rapids,” Vanornee said. “…but the underlying system for creating these boxes and international documents is really cool.”
Mayor Tiffany O’Donnell said the project met the city’s need not only to attract new businesses, but also to retain existing businesses.
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Post time: Jan-13-2023