Background:
The Kraft Heinz Company has been a part of the Davenport community since 1946 when they purchased their building at 1337 W 2nd Street. Over the past 69 years they have made many upgrades and additions and have been a valuable employer and contributor to the local economy.
The Kraft Heinz Company is now considering the construction of a state-of-the-art food manufacturing facility on approximately 70 acres in the Eastern Iowa Industrial Center. The company estimates the total project investment at $203 million. This project allows for the retention of at least 475 full time positions. These positions are supported with a benefit package.
The Kraft Heinz Foods Company has requested City of Davenport and State of Iowa economic development incentives. The company is planning a very aggressive construction schedule. In order to meet the State of Iowa’s timeframe for local match by November 5th the City is offering Industrial Property Tax Exemption.
As the current property owner, the Greater Davenport Redevelopment Group has initiated voluntary annexation to the City of Davenport. Concurrently with that the City will also pursue inclusion of the site into the North Urban Renewal Area in order to offer tax increment financing to support the business equal to or greater than that of the Industrial Property Tax Exemption (Iowa Code and Chapter 427B).
The approval of this resolution documents the following items:
- City Council’s preliminary approval of City participation in the project in support of the company’s application to the Iowa Economic Development Authority for financial assistance and serves as the proposed source of any State required local match.
- Authorizes the Mayor to sign documents as related to the project.
Authorizes staff to begin the process to include the site of approximately 70 acres in the Eastern Iowa Industrial Center into the North Urban Renewal Area.