MASON CITY – The Mason City council this week unanimously approved the terms of a development agreement with Cargill Kitchen Solutions Inc. for an expansion of their 1750 South Benjamin Avenue facility.
According to city documents, Cargill Kitchen Solutions Inc. is in the process of beginning an 11,700 square foot expansion of their facility located at 1750 South Benjamin Avenue. The expansion will allow for the installation of a new further processing egg cook production line, as well as infrastructure additions to support the new line and freezer expansion. Cargill Kitchen Solutions Inc. will create over 40 jobs with
the addition of the new line and expansion within the first year. The expansion is needed to expand Cargill Kitchen Solution customer base and product offerings.
The expansion of their building will also increase the taxable value of their property. The assessed value of the new addition is estimated to be $825,000. The new assessed value multiplied by the current TIF rate will generate approximately $25,575 per year in new taxes per year. The current Unified Urban Renewal Area will expire in 2021 so there are approximately three years of time to provide incentives to development prior to the expiration of the district. The short period of time that funds can be collected require an accelerated payment schedule for this incentive.
City staff proposed to provide a tax rebate in the amount of $210,000 in total provided over a three year period. The rebate will provide funds in the amount of $70,000 over three years payable in FY 2019, 2020 and 2021. The amount proposed is less than a ten year 100% rebate based on the fact the money is being provided in a shorter time frame.
The resolution instructs staff to move forward with completion of the paperwork necessary to complete the development agreement. The current plan is to bring forward the documents to set the hearing date for the development agreement and development agreement documents as soon as possible. The hearing date will be set as soon as documents have been approved by both parties.
No impact on the operating budget but the project will have a positive impact on the taxable value supporting our general fund in the future. The job creation will help our citizens with employment and assist in growing our community.
At Tuesday night’s city council meeting, the council by a 6-0 vote approved the terms of the development agreement with Cargill Kitchen Solutions Inc. for provision of incentives to support an expansion of their 1750 South Benjamin Avenue facility by 11,700 square feet and support the creation of over 40 new jobs.