Hormel may be planning $31M expansion in IowaPublished 11:07am Friday, November 1, 2013
By Ben Jacobson
Hormel Foods Corp. may be looking to build a $31-million expansion in Iowa, according to the Telegraph Herald of Dubuque, Iowa.
Officials from Hormel confirmed Thursday expansion discussions are under way with Dubuque city leaders and economic development officials. If an agreement is reached, the addition would create two new production lines and 91 jobs at Hormel’s Dubuque Progressive Processing site.
On Monday, the Dubuque City Council will consider an application requesting financial assistance from the Iowa Economic Development Authority to help lure the project to the city. As a “local match” for the state’s contribution, Dubuque would offer a $1.3 million tax-increment financing incentive that would begin in fiscal year 2022.
The city is being proactive and forceful in its recruitment efforts, according to Dubuque Economic Development Director Maurice Jones.
“We want to show that we are very aggressive about trying to get business to expand here,” he said. “We also want to show our interest and say, ‘Hey, this is something we can offer.’ This is roughly 90 jobs. That’s significant for the community.”
The requested contribution from the state would allow Hormel to utilize several economic development programs.
Rick Dickinson, president and CEO of the Greater Dubuque Development Corp., said, that if the application is approved, the city will request investment tax credits and sales tax exemptions for new equipment, among other incentives, on behalf of the company.
Though ultimately contingent on several variables, including the number of jobs created and actual expansion cost, the total incentive package, TIF included, could be worth about $4.2 million.
“I think we’re in a very good place and I think the city has made the right choice in the level of incentive provided, and we hope the state will do the same,” Dickinson said.
Dubuque is up against global competition to secure the project, Jones said. However, he expressed confidence that, pending completion of the incentives package, the city will be well-positioned.
“They’re looking internationally,” Jones said. “They could be anywhere. Why not here?”
The expansion would increase Hormel’s investment in the city to more than $120 million, according to City Manager Mike Van Milligen. The new positions would increase the plant’s work force to about 300.
Exact wage ranges and job duties haven’t been disclosed. But Van Milligen said they will not be considered “low-wage” jobs, and should make the project eligible for state aid.
Van Milligen said discussions with Hormel have advanced relatively quickly, and the company appears motivated to proceed.
“Even though they’re a huge company, they’re pretty nimble,” he said.
Dickinson said Hormel’s status in the industrial world makes this project coveted internationally.
“Everyone would like to have them,” he said. “They’re a great corporate citizen. They’re an international brand. They’re a state-of-the-art food processing facility.”