CEDAR FALLS — A firm with a presence in Cedar Falls for 50 years is proposing to move and expand, building a new 171,000-square-foot, $7 million building in the Industrial Park, nearly tripling in size here.
Buckeye Corrugated Inc.-Hawkeye Division, formerly known as Hawkeye Corrugated Box, was founded in Cedar Falls in 1967 and purchased by Buckeye Corrugated Inc. of Akron, Ohio, in 2009.
It plans to move from its existing 62,000-square-foot location on Ida Street overlooking the Cedar River across from Island Park and build a new building on 16 acres of land at Production Drive and Capital Way, near the Bossard-IIP building and the Furniture Mart USA distribution center now under construction.
The City Council, meeting at 7 p.m. Tuesday at City Hall due to the Labor Day holiday, will be asked to approve a development agreement and conveyance of city-owned land for the project.
Under the proposal, BCI Hawkeye Division would receive a partial five-year property tax abatement, with 75 percent of the building’s assessed valuation exempt from taxation the first year, decreasing by 15 percent annually until the full valuation is on the tax rolls. Over that period the company would pay a total of $765,000 in property taxes and have $459,000 exempted.
“The company has outgrown its facility, is landlocked and has significant issues with semi-truck access into the existing site,” Bob Seymour, city planning and community services manager, wrote in a memo.
That site would be listed for sale or redevelopment.
The city has been in discussions with the company for several months. The firm employs 50 people in Cedar Falls and anticipates growing.
The privately held, employee-owned firm employs 600 people in 11 locations across eight states and does business from Cedar Falls with Fortune 500 companies in Iowa and all surrounding states.
The company has designed packaging for products ranging from tool boxes to tuxedos to tractor parts. John Deere, Snap-On Tools, Omega Cabinets and Milroy’s formal wear in Waterloo have been among its customers.
Buckeye Corrugated would like to start construction in November and be completed by fall 2018, Seymour noted. The building would have a minimum valuation of $7.1 million and a total valuation, including land, of $8.1 million.