CHARLES CITY — One of the largest economic development projects in recent Floyd County history took another step forward on July 20, 2026, as the Charles City Council advanced the incentive process for Cambrex Charles City’s massive manufacturing expansion.
The council approved Resolution No. 94-26, setting an Aug. 3 public hearing to consider a formal development agreement with Cambrex Charles City Inc. The agreement would provide tax increment financing incentives to support a project expected to bring approximately $150 million in capital investment and 143 new full-time jobs to the community.
The July 20 action did not approve the incentives themselves. Instead, it established the legally required public hearing under Iowa’s urban renewal law before the council can vote on the development agreement.
The public hearing is scheduled for 6 p.m. Monday, Aug. 3, in the Zastrow Room at the Charles City Public Library. Following the hearing, council members may approve the agreement, make changes or abandon the proposal.
If approved, the agreement would provide annual tax increment financing payments totaling no more than $405,000. Those payments would come solely from the new property tax revenue generated by the expansion rather than existing city tax collections.
The project represents a significant expansion from plans first announced by the company several years ago.
As NorthIowaToday previously reported, Cambrex (pictured at top) unveiled plans this spring for a new 7,700-square-foot production facility intended to increase capacity at its Charles City operation by approximately 40 percent.
That earlier announcement called for approximately 104 new jobs. The proposed city development agreement now requires Cambrex to expand its workforce by 143 qualifying full-time employees earning an average wage of at least $24.76 per hour.
According to the agreement, Cambrex currently employs approximately 405 full-time equivalent workers in Charles City. The company plans to invest roughly $150 million in construction, equipment, furnishings and other capital improvements.
Cambrex would be required to substantially complete the expansion by Dec. 31, 2027, maintain ownership and operation of the facility, remain current on property taxes and comply with local building, zoning and safety regulations.
Unlike a traditional grant funded with existing tax dollars, the city’s incentive package is performance-based.
Cambrex would receive up to $405,000 through 18 semiannual tax increment payments. The payments would be based on 90 percent of the new eligible property tax revenue generated by the expanded facility and would remain subject to annual appropriation by the City Council.
Payments are expected to begin Dec. 1, 2029, assuming the full value of the project is placed on the property tax rolls as of Jan. 1, 2028. The agreement would end after the company receives the maximum amount or on June 1, 2038, whichever comes first.
The agreement also carries forward a $48,750 forgivable loan originally approved in 2023. No additional loan money would be issued.
The existing loan could be forgiven if Cambrex fulfills its employment commitments. If the company falls short of creating the required 143 qualifying positions, part of the loan could become repayable under a formula contained in the agreement.
The city would also withhold up to $10,000 from the first available payments to cover legal and administrative costs. A previous $43,000 tax increment payment made under the company’s earlier development agreement would also be credited against future payments.
The city reserves the right to withhold incentives if Cambrex fails to complete the project, maintain its Charles City operations, pay property taxes, comply with its Iowa Economic Development Authority agreement or meet the required job targets.
The latest proposal replaces a 2023 development agreement for an earlier Cambrex project that did not proceed as originally planned. The city and company are terminating that agreement and transferring the existing forgivable loan into the much larger project now under consideration.
The Iowa Economic Development Authority previously approved more than $10.1 million in state tax credits for the expansion through its Business Incentives for Growth program.
Cambrex has repeatedly expanded its Charles City operation over the years. In 2020, the company announced a separate investment of more than $50 million to add manufacturing capacity at the facility.
Cambrex manufactures active pharmaceutical ingredients and pharmaceutical intermediates used in generic and branded medications. Products made at the Charles City site support treatments involving oncology, HIV, hepatitis, Crohn’s disease, smoking cessation and other medical conditions.
The new project would further strengthen Charles City’s position as a major pharmaceutical manufacturing center while bringing more than 140 additional good-paying jobs to Northern Iowa.
The City Council may take final action on the development agreement following the Aug. 3 public hearing.