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Zoetis plant in Charles City set for expansion

This news story was published on March 21, 2018.
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Charles City

CHARLES CITY – The Zoetis plant in Charles City is set for expansion.

The Charles City city council met on March 19 and approved a development agreement with Zoetis, Inc., authorizing annual appropriation tax increment payments and pledging certain tax increment revenues to the payment of the agreement. Zoetis is planning a roughly $54 million expansion project to their existing plant to increase manufacturing capacity. This includes $21.9 million in new building construction, $6.9 million in remodeling and $25.2 million in machinery and equipment.

Last October, the Iowa Economic Development Board awarded Zoetis tax benefits via the HQJ program.

Zoetis has sought financial assistance from the state of Iowa and the city of Charles City to complete the project. State incentives would include $1,620,000 in tax credits, $864,000 in Sales Tax Credits, and $15,000 in Research Activities Credits and $20,000 in job training funds. Local incentive based on the City’s matrix calculation is estimated to be a total of $1,847,069. This would come in the form of an eight year 90% property tax rebate through the SW Bypass TIF district. Years 1 & 2 are partial rebates as they build out over three years.  City documents state that the SW Bypass Board met on October 13, 2017 and discussed the project and tax rebate with City staff, ADC Director Tim Fox and several representatives from Zoetis. The SW Bypass Board moved to recommend their support to the City Council and Board of Supervisors to approve the tax rebate as presented.

The project is expected to create six jobs incented at a qualifying wage of $16.83.

Zoetis, Inc. is a global animal health company headquartered in Parsippany, New Jersey with a manufacturing facility in Charles City, Iowa. The company has been in the business of manufacturing animal health medicines and vaccines for over 60 years.

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