The Ankeny City Council is scheduled to vote this evening on a development agreement that would provide tax incentives to the manufacturer for construction of a 60,000-square-foot office building at its Ankeny plant.
The council will consider a 10-year tax increment finance agreement for the proposed building, to be located at 825 S.W. Irvindale Drive. If approved, the agreement would provide a 30 percent rebate of the taxes on the incremental increase in value on the property.
The council approved property tax rebates in December 2011 valued at up to $4.8 million for the company's 300,000-square-foot factory expansion, which opened in June.
The council also is scheduled to discuss tax incentives for expansion projects by two other companies that each has a significant presence in Ankeny: Northstar Power LLC and Lauridsen Group Inc.
Although the council typically considers tax incentives for several economic development projects each year, it's unusual to have three come up at one meeting, said John Peterson, assistant city manager. The estimated dollar values of the proposed incentives were not immediately available.
The Lauridsen Group, which manufactures and sells functional proteins in the animal and human health industries, plans a 21,000-square-foot office building to be located at 2425 S.E. Oaktree Court at its existing office park. The city is considering a seven-year property tax abatement for this project. According to the development agreement, the company plans to add 40 jobs over the next three years with the expansion.
Northstar Power is seeking tax incentives from the city for an 85,000-square-foot administrative office, manufacturing and warehousing building on an 11-acre site at 7301 Northstar Drive, at the southeast corner of Four Mile Creek and Corporate Woods drives. The company contracts with John Deere Power Systems to provide design modifications to Deere engines that it distributes to original equipment manufacturers.
The company moved into its current building in 1995, and after expanding that to 63,000 square feet, it's now landlocked on its property in southeast Ankeny, said Frank Christensen, Northstar's vice president and general manager.
"It's an expansion driven by business," he said. "There will definitely be additional employment; no time frame, but moving forward, we know we will be adding staff, so that was a big reason for this expansion."