The company is seeking city and state incentives for what could be the largest development in the city’s history.
A map showing the location of the state’s first mega-development, the Big Cedar Industrial Center, during a presentation at Alliant Energy’s hangar at the Eastern Iowa Airport in Cedar Rapids, Oct. 24, 2018. An unnamed company is considering building a $576 million data center on the land. (Jim Slosialek/The Gazette)
CEDAR RAPIDS — An unnamed company is seeking city and state financial incentives to build a massive $576 million data center at the Big Cedar Industrial Center, creating at least 31 new high-wage jobs. Jobs will be created.
In the coming weeks, the Cedar Rapids City Council will consider a development agreement with Heaviside LLC for a project to build one or more data centers along Southwest 76th Avenue and Southwest Edgewood Road in the Big Cedar Industrial Center. It is planned.
Although Heaviside is named, the name of the company occupying the development was not disclosed.
In recent years, the city has given incentives to build large warehouses and other buildings in the rapidly growing southwest quadrant. These include a $140.6 million light industrial building for kitchen appliance company Sub-Zero, a new $108.6 million distribution center for FedEx, and a $139 million classified defense aerospace facility for BAE Systems. It employs 800 people.
But if the data center project is approved, it could surpass even those large investments, making it one of the largest economic development projects in Cedar Rapids’ history, if not the largest.
The proposed development will create 31 new full-time employees who will be paid above quality wages.Construction is expected to begin within three years of the development agreement taking effect.
The 890-acre certified portion of the entire Big Cedar site is Iowa’s first megasite, offering potential developers hundreds of acres of development-ready land. All 1,391 acres are managed by Alliant Energy.
incentive
Under the terms laid out in City Council documents, the company will receive a 70 percent tax exemption for 20 years, as long as it meets employment criteria and has successful applications for high-quality jobs. The earliest it will be considered is March 15th by the Iowa Economic Development Authority board.
If not approved, “the city agrees to make a good faith effort to provide a comparable incremental financing (TIF) rebate in lieu of the tax exemption,” according to City Council documents.
As tech companies such as Google, Facebook, and Microsoft invest billions of dollars in Iowa to attract large data centers, the Iowa Economic Development Authority says on its website that Iowa has “affordable and sufficient wind power.” “We can provide energy, a stable power grid, and a high-density power supply.” Low cost of communication infrastructure and construction projects. ”
Other financial incentives include:
- A 20-year 75% economic development rebate on franchise fees collected by Cedar Rapids through the electricity provider for each data center built.
- $1.30 per month credit per cubic foot of gray water provided by the city.Credits per unit increase at 2.5 percent annually to a maximum of 57 percent of sewer discharge rate per unit
- The company will pay the city an annual community improvement fee to “promote economic development activities, including the growth of amenities and infrastructure.” Payments will be made at $400,000 per data center per year for 15 years, for a maximum of $6 million per data center, for a total of $36 million.
- The company plans to provide any necessary easements on the site, including utility extensions. Developers will be required to work with the city on the possibility of a Healthy Economic Revitalization of Iowa (RISE) grant if the city is eligible and applies.
The City Council in August, at Alliant’s request, rezoned land west of Edgewood Road SW and north of 76th Street SW from light industrial and agricultural to general industrial, paving the way for the project. looks like.
Is it another project?
Another project could be in the works there after Congress in January rezoned much of Big Cedar to accommodate intensive industrial users. A 245-acre parcel on the west side of the property, north of SW 76th Street and west of SW Tissel Hollow Road, was rezoned from an agricultural district to a general industrial district.
Comments: (319) 398-8494; marissa.payne@thegazette.com
