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Hearing set on Iowa Premium Beef tax incentives

June 24, 2013
By John Speer - Editor (jspeer@tamatoledonews.com) , Toledo Chronicle, Tama News-Herald

Promised development help for Iowa Quality Beef in the company's quest to reopen the closed beef packing plant on Tama's east side took another step forward Monday night.

City council members voted 4-0 to set a public hearing on an agreement for July 1 to hear comments on the measure. Members voting in favor were Steve Baier, Robert Tyynismaa, Mike Carnahan and Kenny McAdoo. Member Crystal Kaufman was absent.

If the council decides to proceed, a total of 23 acres of the packing house property which has already been designated an urban renewal district, will be eligible for incentives.

Article Photos

Iowa Premium Beef plant on Tama's east side.

City Attorney Dan Rathjen told The News-Herald, the tax increment financing arrangement provides for new property tax money generated from improvements made would actually be rebated to Iowa Premium Beef.

Under previous guidelines established by the council, Tama would refund 100 percent of the new tax money generated from the district for five years. After that period, a sliding scale of rebates for the next five years - year six -90%, year seven -70%, year eight- 50%, year nine- 30 % and, year 10- 10% would be in effect.

A ceiling of $3,600,000 total in tax incentives is allowed under the plan.

Iowa Premium Beef management has announced plans to hire 550 meatpackers when operations again start and ramp up to 950 employees in a period of about three years.

They said a plant processing custom orders is in the works.

The original Tama Pack opened in Tama in 1971 and operated under various ownership until the end of 199 when then-owner IBP ceased operations. The property was given to the City of Tama by the company.

Since then, an alliance between a Wisconsin and Minnesota meatpacker leased the operation for about a year before closing the plant.

In 2003, a group of 950 midwest cattle producers formed Iowa Quality Beef and bought the property from the city. The plant was again open about one year before closing. The company subsequently entered bankruptcy.

The plant has been shuttered since.

In other business Monday the council:

approved fuel reimbursements based upon response to fire calls for firefighters totaling $2,023. Firefighters are allowed $7 per alarm answered.

approved a new liquor license for the Town Pump under the ownership of Dustin Brooks and a renewal for the American Legion Club.

approved lighting repairs for the Tama Public Library which could total up to $4,000. The city will pay $1,700 from capital projects fund and the balance comes form the library trust account according to City Clerk Judy Welch.

approved payments to Twin Cities construction, Tama, totaling $10,983 for street repairs and $10,315 for storm sewer repairs.

approved the perpetual care payment to the Oak Hill Cemetery Association in the amount of $650.

approved cigarette sales permits for El Gallito, Jiffy South, Tama-Toledo Country Club and Casey's General Store.

 
 

 

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