Heard on the Street: Hormel considers Dubuque expansion
Austin-based Hormel Foods is considering a $31 million expansion that would create 100 jobs at its meat processing plant in Dubuque, Iowa, according to news reports.
The city of Dubuque is proposing an economic development package that could provide about $4 million in city and state benefits to Hormel as an incentive to expand in Iowa.
The plant opened in 2010 and is one of four plants that produce Hormel Compleats microwave meals. It was the first new production facility the company had built in more than 25 years.
Dubuque, however, has significant competition in attracting the Hormel expansion. Not only could Hormel choose to expand out of the country, but it could also pick one of its other U.S. facilities.
"(Hormel) is extremely important to the community," said Maurice Jones, Dubuque's economic development director. "Going forward, I think it's really important that we try to help them expand here as opposed to (somewhere) else. I think we have a lot to offer."
The city will offer $1.3 million in tax-increment-financing benefits over five years, which would begin in fiscal year 2022, as a "local match" required by state incentive programs.
If the application is approved, the state would provide investment tax credits, sales tax exemptions, and job training funds.
Included in the city's application to the IEDA are some details about the jobs that would be created by the expansion.
The majority of the new positions would be production laborers, with wages starting at $13.58 per hour. The expansion also calls for more than a dozen mechanics/electricians with wages starting at $21.41 per hour, and seven production supervisors at $23.25 per hour, among other positions. — Mike Klein and the Associated Press
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