The Iowa Economic Development Authority approved a financial aid package Friday to help lure a chemical production company from Boone County to Huxley.
According to board documents, the state intends to give Madrid-based Continental Manufacturing Chemist (CMC) $600,000 in forgivable and interest-free loans, along with approximately $229,000 in tax credits.
Huxley would also provide a property tax rebate of 15 percent of the increased property value created by the new location, valued at $584,000, according to board documents.
CMC, founded in 1959, produces cosmetics, over-the-counter drugs and other health care products for consumer-brand companies.
The move, if approved, would create 48 new jobs on top of the 50 or so current employees of the company.
CMC president Stuart Miller said the company’s 40,000 square foot Madrid facility can’t support its production growth into the next several years.
“It’s aged and it’s functionally obsolete,” he said.
The company is currently considering an 80,000 square foot spec building just west of the U.S. Highway 35-Iowa Highway 210 interchange, a project that would cost around $9.2 million.
Miller expects construction to begin in September and the plant to become operational in the late first or early second quarter of 2018.
He said the new jobs vary between administrative positions, research and development and line manufacturing positions. Nineteen of those positions are required to be paid at $24 per hour, or 120 percent of the local prevailing wage, because of state and local support.
Miller said CMC is still weighing its options for relocation between Huxley and Rock Hill, Mo., a suburb of St. Louis. However, if Huxley approves their payments, Miller said CMC will confirm their move to Huxley.
“All indications are if things go the way we think they will, then it’s a done deal,” he said. “But we need that support and are appreciative of the consideration.”
Huxley city officials must still approve a matching grant before CMC makes its final decision. Huxley City Administrator John Haldeman said the the City Council will hold a public hearing Aug. 3 on whether to approve the $500,000 grant over seven years.
Haldeman said CMC would become the third largest employer in Huxley if they moved to the city, behind manufacturer Kreg Tool and Ballard Community School District.
“It would mean quite a bit in terms of the tax revenue aspect of it, but also the housing and future commercial development based on that housing,” he said.