Kreg Enterprises, Inc. is proposing to construct an approximately 250,000 square foot office and manufacturing facility on 25 acres in the Crosswinds Business Park, adjacent to Interstate 35 and west of SE 77^th Street.  The total capital investment for this project is approximately $34 million. The proposed project includes associated site improvements and extending public infrastructure to serve the property. Infrastructure improvements and building construction will begin in 2019.  It is anticipated that the project will be completed in early 2021.  

Kreg has committed to creating 20 new jobs as a result of this expansion with wages exceeding 120% of the area median laborshed wage of $30.32/hour, plus benefits.  The proposed development agreement includes claw-back provisions on all 20 jobs at the wages noted above.  In addition to the new positions being created, Kreg will be relocating approximately 230 positions from their current facilities in Huxley.  The City of Ankeny has received a sign off letter from the City of Huxley, which is required prior to providing local incentives for an in-state relocation project such as this.

The proposed development agreement includes 100% TIF rebates over five years.  The estimated value of these incentives is $1,154,000 on a building value assessed at approximately $17 million.  In addition, the project is expected to qualify for five-year sliding scale industrial property tax exemption.  Over the five year term incentives will be provided, Kreg will pay approximately $600,000 in new property taxes to all taxing entities.  After the five year term of the agreement, estimated net new tax receipts to all taxing entities will be approximately $620,000 annually.  These totals include taxes paid on the improvements to the site and the increased value of the land.

The date for the public hearing was approved at the December 3, 2018 City Council meeting.

Action: <span>Consider motion to adopt RESOLUTION approving a Development Agreement between the City of Ankeny and</span> Kreg Enterprises, Inc.