CEDAR RAPIDS — Collins Aerospace — the town’s largest employer — was awarded $1.85 million in state monetary incentives towards its proposed $22 million growth of its northeast Cedar Rapids campus to start the manufacturing of microchips.
The Iowa Financial Growth Authority board on Friday accepted the incentives towards the venture for Collins, a division of Raytheon Applied sciences, to renovate an present constructing on its campus between Collins Highway and Blairs Ferry Highway NE.
State incentives embody a $1.54 million funding tax credit score and refund of $285,000 in gross sales, use and repair taxes paid throughout development.
This award dietary supplements the native match the Cedar Rapids Metropolis Council accepted on Tuesday — $1.05 million in tax incentives.
The venture requires modernizing Collins’ facility and environmental controls for protected chemical storage/dealing with, water therapy and related gear and furnishings with a “class 100 clear room” — a producing construction that makes use of HEPA filtration methods to maintain the air clear.
The corporate will use the constructing to develop and manufacture microelectronic — microchip — applied sciences for Collins Aerospace communications merchandise, with manufacturing anticipated to develop, metropolis Financial Growth Supervisor Caleb Mason stated Tuesday.
Beneath the deal factors accepted by council, the corporate would renovate an present 20,000-square-foot manufacturing constructing to create a 5,000-square-foot plating space, extra lab help and workplace area and a 6,000-square-foot class 100 clear room.
Of the $22 million minimal funding, $9.5 million would go towards the renovation and construct out of the ability, and $12.5 million would go towards equipment and gear.
Work would start in April and end by January 2026.
The Cedar Rapids-based firm at the moment employs 7,816 individuals in Iowa, in response to the IEDA.
To obtain monetary incentives, the corporate should preserve 25 present staff and create no fewer than 16 extra full-time staff. Not less than 41 staff should be paid at or above the high-quality jobs wage threshold of $25.20 an hour — typically in engineering and technical positions that pay properly above that quantity, Mason stated.
The town will present three consecutive yearly funds of $350,000 financial growth grants beginning in August 2025 by August 2027. These grants shall be funded from the Collins tax increment financing district.
These three grants had been consolidated to be awarded earlier than the TIF district expires.
“I do not suppose we will underestimate the significance of those sort of employers which are engaged in high-tech merchandise, and having them in Cedar Rapids pays huge dividends in the long term,” council member Scott Overland stated Tuesday.
Feedback: (319) 398-8494; marissa.payne@thegazette.com
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