Plantation Development and LEDs America are once again asking the Bettendorf City Council for Tax Increment Financing (TIF) dollars to help build a facility to assemble LED lights.
The developers have been promising to bring manufacturing jobs from China to Bettendorf to make the energy efficient lights in the currently undeveloped I-74 Technology Park, owned by Plantation Development.
LEDs America had proposed a similar deal in 2010 for upstate New York (Kingston), but that fell through after the state declined to provide assistance for the project.
Just last month, LEDs America and Viper Networks of Troy, Michigan, announced a joint partnership (May 23) to "build-out" the first LED manufacturing facility in the U.S. in an existing building in Washington, D.C.
According to the Viper Networks news release, "the official start of the approximate 10-week LED manufacturing and assembly line build-out phase is merely awaiting the U.S. government grant check issuance for approximately $750,000, which is expected at any time or most likely within the next few weeks."
The city council more than a year ago gave approval of a 10-year TIF rebate for a 7,200-square-foot office building and 13,000-square-foot assembly building on land east of Interstate 74, north of Tanglefoot Lane. The council also passed a resolution expressing its support for the developer to apply for $400,000 in state grants and loans.
The new TIF agreement calls for a smaller office building, 4,800 square feet. Over the 10-year TIF agreement, the city would rebate the increment (property taxes generated from the development above the current level) back to the developer.
The total estimated cost of the LED assembly building is $1.5 million and the office building is $650,000. The total amount of tax increment rebate is estimated to total $375,000 over the 10-year term for the assembly plant, and $162,500 for the office building.
Then, as now, the developer also is seeking grants and loans from the Iowa Department of Economic Development, the Bi-State Region Revolving Loan Fund and the U.S. Small Business Administration (SBA).
Because the developer was unable to begin work within the yearlong timeframe, Plantation had to return to the city for re-approval. City officials have said the developer was unable to obtain private financing last year, but the developer now says private financing is in place.
A public hearing on the tax increment financing agreements will be held at 7 p.m., June 19 at city hall.
