Hy-Vee seeks state tax incentives for expansion of corporate headquarters

KENT DARR Mar 26, 2015 | 8:05 pm
2 min read time
464 wordsAll Latest News, Real Estate and DevelopmentHy-Vee Inc. is seeking $7.5 million in state development tax credits for a $75 million expansion of its corporate campus on Westown Parkway in West Des Moines.
The project will result in the hiring of 103 new employees at the corporate office, West Des Moines Community and Economic Development Director Clyde Evans said.
The city of West Des Moines is working on the details of a development agreement with Hy-Vee that includes a five-year, sliding-scale rebate of the taxes on improvements, Evans said. In the first year of the agreement, 75 percent of the tax increment would be rebated to the company.
The first phase of the project is a 25,000-square-foot expansion of the Hy-Vee Conference Center and office space, according to the Iowa Economic Development Authority. That work is scheduled to begin in April.
Next year, Hy-Vee plans to add 72,000 square feet of office space, according to an IEDA document.
The IEDA board is scheduled to take up the request for tax credits during its meeting Friday.
Also during the meeting, the board will be asked to amend a December agreement that provided $2 million in tax credits under the state’s High Quality Job Program for EMC Insurance Cos.’ new construction and expansion of its campus on Walnut Street.
The addition of underground parking and additional square footage has resulted in an increase in project costs to $39 million from $23 million, according to an IEDA document.
As a result, EMC is asking to increase its tax credit package to $2.86 million. The company will retain 103 jobs at a qualifying hourly wage of $25.52.
The project includes construction of a four-story building at Walnut and Eighth streets that will include collaborative meeting space, an employee fitness center, operational support and improved areas for computer, mechanical and printing equipment.
Computer software firm Pillar Technology Group LLC is seeking a $100,000 forgivable loan and a $100,000 five-year loan at 0 percent interest for its planned opening of a regional office at 1420 Locust St. in Des Moines.
Pillar Technology currently has 150 employees and facilities in Columbus, Ohio, Ann Arbor, MIch., and Palo Alto, Calif. The Des Moines office would employ up to 49 technology staff members over the next three years paying an estimated average of $81,000 per year, according to a report to the Des Moines City Council, which has approved a $40,000 incentive package.
The company serves Fortune 500 companies and creates its own venture capital fund to develop early-stage, high-tech startup companies, according to IEDA.
Pillar Technology would be the first tenant of an historic downtown building that is part of a Kum & Go LC redevelopment project south of the John and Mary Pappajohn Sculpture Park on Locust.