State OKs $7.5M for Hy-Vee expansion

A state board approved more than $8.4 million in incentives for three expansion projects in the Des Moines metro.

The Iowa Economic Development Authority Board approved Hy-Vee’s request for about $7.5 million in tax credits Friday.

The supermarket chain is planning a two-phase expansion of its West Des Moines headquarters, which is expected to cost about $74.6 million.

First, Hy-Vee will double the size of its conference center. It then plans to add 72,000-square-feet of office space.

Construction on the conference center is slated to begin in April, according to documents provided by the authority.

Hy-Vee has to create 102 jobs in order to receive the state money. Those jobs have to pay at least $25.52 an hour.

The authority board also approved incentives for two other Des Moines metro projects.

Pillar Technologies, a computer software company based in Michigan, received access to $200,000 in loans. The firm plans to open a regional office in Des Moines and will lease between 7,000 and 11,000 square feet in downtown Des Moines.

Pillar has to create 40 jobs that pay at least $25.52 an hour to receive the incentives.

The authority board granted Advanced Analytical Technologies $500,000 in loans and about $256,000 in tax credits.

The Ames-based maker of genetic analysis systems plans to move from its current home to a new office in Ankeny, a project it expects to cost about $7.8 million.

Advanced Analytical Technologies has to create 57 jobs that pay at least $25.52 an hour.

A Chicago-based train car maintenance company also received an $80,000 loan Friday.

Union Tank Car Co., a Berkshire Hathaway subsidiary, wants to expand its Muscatine coating plant, which it expects to cost about $1.9 million.

The company has to create 10 jobs and keep 20 others, all of which have to pay at least $17.06 an hour.

$10 million for Muscatine hotel project approved

Muscatine is the second Iowa city that can set up a reinvestment district, following the path of Waterloo.

The Iowa Economic Development Authority Board approved Muscatine’s request for $10 million to help finance a $41.5 million hotel and conference center project.

The money comes from a relatively new state program that allows cities to set up reinvestment districts. If approved, cities can redirect future tax money generated in those areas to pay for projects located in the district.

Muscatine plans to built a 112-room hotel and a 12,700-square-foot conference center.

The board already approved $12 million for a district at Waterloo’s TechWorks campus and is expected to vote next month on Des Moines’ application for $39 million for a downtown convention hotel.