Huxley’s City Council approved a $584,000 financial aid package to Madrid-based Continental Manufacturing Chemist (CMC), guaranteeing the company will move to the city instead of Missouri.
In a special meeting Thursday night, the council voted unanimously to approve a tax increment financing district for the 80,000 square foot building in Huxley’s Blue Sky Commons, a value of about $584,000 over seven years, according to board documents from the Iowa Economic Development Authority.
The company will also receive $829,000 from the IEDA in a package of forgivable, interest-free loans and tax credits. The new facility is expected to cost around $9.2 million.
CMC, founded in 1959, produces cosmetics, over-the-counter drugs and other health care products for consumer-brand companies. CMC president Stuart Miller previously said the company’s 40,000 square foot facility in Madrid can’t support its production growth into the next several years.
The move is expected to create 48 new jobs on top of the 50 or so current employees of the company. It also makes CMC the third largest employer in Huxley behind manufacturer Kreg Tool and Ballard Community School District.
Huxley was competing with Rock Hill, Mo., a suburb of St. Louis, for CMC’s relocation. After the meeting, Miller said he is grateful for the support from the city and state.
“Those were crucial elements to us making a final decision on site selection,” he said.
Miller said the company hopes to close the deal and begin the move from Madrid sometime in early September.
He also said the company will start hiring in advance of the plant’s opening, which is expected sometime in the late first or early second quarter of 2018.
“We’ll be eagerly trying to get people to come work for us sometime in the first quarter,” he said.