Alpla seeking TIF funds from Iowa City for expansion

Agreement would include 10,000-square-foot addition to plant and 37 new jobs

George Ford
Published: January 20 2014 | 11:38 am - Updated: 29 March 2014 | 2:23 am in

The Iowa City Council on Tuesday will consider approving a tax increment financing agreement to assist Alpla Inc. with a $12.2 million expansion of its plant at 2258 Heinz Rd.

Under the agreement, Alpla will receive four years of tax increment financing -- not to exceed $170,000 -- in exchange for constructing a 10,000-square-foot addition to the plant and adding 37 jobs to the existing 225 positions.

Alpla has been approved by the Iowa Economic Development Authority for $646,000 of tax incentives from the state's High Quality Jobs Program. The Iowa City tax increment financing agreement will provide the local match for the state financial incentives.

Alpla, based in Austria, employs more than 12,000 people worldwide. The company opened an Iowa City plant in 2003 with 35 employees to supply plastic bottles to Procter & Gamble in Iowa City for shampoo and other personal care products.

The Alpla plant has expanded twice since it opened in 2003.

The first project involved construction of an additional 86,000 square feet that enabled warehousing and distribution at the plant. The second project involved construction of another 82,200 square feet of manufacturing space.

Alpla's assessed valuation is $9 million, roughly $5.4 million more than what it was in fiscal 2005. The plant has an annual payroll of approximately $11.4 million.

Of the $12.2 million that Alpla will invest in the latest expansion, about $1 million will be taxable valuation and the remainder will be in machinery, equipment and people.

The Iowa City Council's Economic Development Committee voted 2-0 on March 20, 2012, to recommend City Council support of the tax increment financing request.

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