Dave DeWitte, CR Gazette –
Target Corp. has been granted $2.27 million more in state tax credits because it added 199 jobs and invested $50.6 million more than planned in its Cedar Falls food distribution center.
The Iowa Department of Economic Development Board approved the request Friday from Minneapolis-based Target, which received incentives under the High Quality Job Creation program in July 2007.
Target’s perishable foods distribution center in Cedar Falls was completed on Oct. 7, 2009. It employs over 250, and supplies the company’s stores in Iowa and nearby areas of the Midwest.
Target has experienced stronger than expected growth in its grocery segment throughout the region, the company said in a letter to the state, and far exceeded the state grant’s job requirement of 51 and its investment requirement of $76.2 million. The company had until July 30 to create the jobs and investment.
The food distribution center, one of two Target distribution centers in Cedar Falls, accounts for 250 jobs and $126.7 million in investment, the company said.
The success of the facility “is due in no small part to the strong relationship that Target has developed over the years with the IDEA,” Jennifer Romans, Target manager of state income tax controversy and planning in a letter to the state.
Target calculated the additional tax incentives it requested by applying the same 4.5 percent factor to its $126.78 million project investment as it was granted on its original grant based on $76.2 million of investment.
Iowa Economic Development Authority spokeswoman Tina Hoffman said that retroactively requesting larger tax incentives when a project exceeds expectations is not unusual.
With tax credits, “it’s just an estimate because you’re doing these things before the project gets started,” Hoffman said.
The increased credit will allow Target to continue investing through the expansion of the Cedar Falls warehouse and construction of its stores in the state, Target’s Romans said.