Urbandale Council Approves Development Agreement With Deere

URBANDALE, IA — Construction of a technology facility for Deere & Company's Intelligent Solutions Group took a step forward Tuesday with the City Council's approval of a development agreement that will give the company an estimated $4.1 million rebate in property taxes over a ten-year period. Deere plans to build a $32.6 million facility at 9505 Northpark Drive.

Deere has leased space for its ISG operations, a division that creates and provides technology to farm equipment and farmers, for nearly 20 years. The planned 134,000-square-foot building, which would be the new international headquarters for that division, is expected to open in 2019. It would become the job site for more than 600 Deere employees, contingent workers and interns.

“ISG has been an important Urbandale business for many years, providing excellent jobs and support for community initiatives,” Mayor Bob Andeweg said in a news release. “The City Council and I appreciate the confidence that John Deere has placed in Urbandale and we are pleased to support this major investment by one of the city’s highly-valued corporate citizens.”

The Northpark Drive site, in Urbandale's newly branded Urban Loop area, is northeast of the 100th Street interstate interchange that will open in 2018. City officials believe the project will be a catalyst for other development in the area.

“The city has worked for many years to prepare infrastructure for business and employment growth,” City Manager A.J. Johnson said. “It is very gratifying to see Deere make a long-term commitment to Urbandale as we continue to strengthen our community and the region as a destination for information technology businesses.”

The Iowa Economic Development Authority last month awarded $2.9 million in tax credits to the project through its High Quality Jobs Program. The development agreement approved by the City Council Tuesday provides Deere a tax-increment financing property tax rebate equal to 77 percent of the property taxes paid over 10 years, or an estimated $4.1 million.

Photo via Brandy Abbott/Pixabay