Council backs incentives for Ingredion expansion, will negotiate development agreement

The Cedar Rapids City Council on Feb. 25 adopted a resolution authorizing city financial incentives in support of Ingredion Inc.’s application to the Iowa Economic Development Authority’s High Quality Jobs program for a plant expansion at 1001 First Street SW.

Bill Michael presented the staff recommendation and described the project as a $48,500,000 capital investment involving construction of three industrial buildings and replacement of 1970s-era starch dryers with modern flash‑drying equipment to increase throughput and enable multiple trailer loading. Staff said the project would require a local match to support an IEDA high quality jobs grant and recommended the city’s standard 10‑year, 50% rebate of increased taxes (a local match instrument used in prior incentives).

Michael said the project is expected to create four new full‑time jobs above the high quality jobs threshold and retain eight existing positions. Staff estimated the project would generate $5,100,000 in total incremental taxes over 10 years with roughly $750,000 rebated under the proposed city incentive structure. Council and staff discussed river/trail access; Council member Todd asked whether future trail or river access could be accommodated and Michael said staff are in discussions with the company about potential trail improvements and that the development agreement process provides a forum for those conversations.

The council adopted the resolution supporting the IEDA application and authorized staff to negotiate a development agreement with Ingredion Inc. for the proposed expansion. Staff will return with negotiated agreement terms and, if the city’s participation is required by the state program, provide required ordinance and agreement documents for further council action.