IOWA (From news reports) -- A Cedar Rapids facility that employs 240 people has plans to add another building in a project that would cost approximately $103 million. It would also add a handful of full-time positions that would meet the high-quality wage threshold.
According to an agenda item from Tuesday's Cedar Rapids City Council meeting, the council will be asked to authorize sponsorship "of a Business Financial Application to the Iowa Economic Development Authority by International Paper, Inc. for an expansion project at 4600 C Street SW and providing local match funds through the City's Local Match-Economic Development Program."
International Paper started operations in Cedar Rapids in 1995. The Cedar River Mill, as International Paper calls it, is "the largest 100% recycled paper mill in the Americas."
International Paper intends to build a new 20,000-square-foot building at the Cedar Rapids mill that would be home to a boiler and water treatment plant. Together, they would provide steam power to the Cedar Rapids facility. Previously, the plant used the coal-powered Prairie Creek Station. However, that facility is being closed.
Plans call for $20 million to be spent on the new building and an additional $83 million for machinery and equipment. Seven full-time jobs, with wages of at least $25.20 per hour, would also be created.
The project would generate approximately $2.34 million in new taxes over the next 10 years. If approved by the Cedar Rapids City Council, just over $960,000 of that would be exempt. The Iowa Economic Development Authority Board is expected to consider state incentives for the expansion of the International Paper Cedar River Mill project next Friday, January 20.
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