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SIOUX CENTER—The Sioux Center City Council approved a development agreement with New Tec, which is planning a relocation and expansion of its operations to Sioux Center.
The new and used forklift dealer headquartered in Hull purchased the 7,400-square-foot former Global Equipment facility on North Highway 75 and is in the process of remodeling the existing structure for administrative and sales offices.
Work is also underway on the 40,000-square-foot addition onto the east side of the structure to allow for parts and inventory storage and remanufacturing of equipment.
New Tec managing partner Scott Hulstein told the Sioux Center City Council at its June 8 meeting that the steel frame is expected to come in August. The tentative completion date would be Jan. 1 but the business hopes to be at its new location at least by next spring.
The Sioux Center location will become the new headquarters for the company, which would close and sell its four properties in Hull. The company also has locations in Spencer, Storm Lake and Sioux Falls, SD.
Sioux Center economic development director Dennis Dokter told the city council that New Tec’s project is a significant investment in facility construction and its expansion means larger operations, services and employment base.
“The city has supported and encouraged their development in this area and recognizes the additional costs to develop this project site and construct new manufacturing space,” he said. “To assist with these costs, staff is developing an economic development incentive agreement for this project.”
After a public hearing the council approved the agreement, which offers a partial property tax abatement on a sliding scale over five years. The agreement also includes an incentive to the developer based on high quality manufacturing job retention and new job creation. The incentive is $1,000 per job created.
Iowa Economic Development Authority defines a high quality jobs as ones created and pay 100 percent of the qualifying wage threshold at the start, or $19.60 in Sioux Center, according to its FY 2022 wage requirements, and 12-percent of the qualifying wage threshold, or $23.52, by project completion and through the maintenance period unless in a distressed area. The business must also provide a sufficient benefits package to all full-time employees that includes the business paying a certain percent of medical coverage.