- Associated Press - Thursday, November 3, 2016

DAVENPORT, Iowa (AP) - The Davenport City Council is preparing to vote on a final plan to build a new Kraft Heinz plant to replace an existing plant, a move that includes taxpayer subsidies despite the loss of hundreds of jobs.

Kraft officials said the company will invest $203 million in the new facility, with the city contributing $10 million over 15 years through tax increment financing, according to the Quad-City Times (https://bit.ly/2flHVsc ). The vote is expected next week.

The Iowa Economic Development Authority approved a nearly $5 million development package that calls for Kraft to retain a minimum of 475 jobs from the existing plant, which currently employs about 1,200 people. The company’s plans faced some criticism after the employment details were released about the massive job losses.

Although the council has not yet voted to officially approve the plat, Kraft Heinz senior vice president Michael Mullen said that once a decision had been reached, the company would first let the employees know. He also said that Kraft Heinz is continuing to look for a viable buyer.

“We continue to evaluate interest in our Davenport facility, including potential buyers as well as other alternative uses for the site,” Mullen said. “We’re committed to keeping the community and local officials apprised of our progress. For now, the process remains ongoing and could take a couple more months.”

The industrial park that the plant exists in will also house a MidAmerican Energy substation to serve the area.


Information from: Quad-City Times, https://www.qctimes.com



Click to Read More

Click to Hide