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Economy

State and Local Help for Kraft Heinz

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Kraft Heinz
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The city and state want to help Kraft Heinz stay in Davenport. Wednesday night, the city council approved 10 million dollars in local incentives, then Thursday morning, the board of the Iowa Economic Development Authority approved 5 million dollars. 

On Wednesday, the company announced plans to close the former Oscar Mayer plant near downtown Davenport, and build a new, modern food processing plant in an industrial park in the northwest part of the city. The current plant now employs about 12-hundred people making bologna and other lunch meats, and the company promises to employ at least 475 when the new plant opens in two years.

Also Wednesday, Kraft Heinz announced plans to close seven plants in the US and Canada, and eliminate 26-hundred jobs. 

Using tax increment financing, Davenport will contribute 10 million dollars over 15 years. The state's incentives include tax refunds, research tax credits, and a forgivable loan.