Beef Cold Storage in Sioux City Ia
SIOUX CITY -- A Florida-based cold storage company has committed to constructing a 500,000-square-foot cold storage facility in Sioux City's Southbridge Business Park.
A rendering of the office view for the complex Cold Link Logistics is planning in phases for a 40-acre parcel abutting 225th Street in Sioux City.
Cold-Link Logistics intends to build the facility in phases on a 40-acre parcel abutting 225th Street. The first phase will contain roughly 130,000 square feet of cold storage space along with offices, truck docks, parking and other amenities. Construction is expected to begin in March 2022 with a projected opening date in early 2023.
Cold-Link Logistics was founded by brothers Michael, Mark and Nick Mandich in 2020. According to the company's website, the Mandich Group owns and manages eight properties throughout the United States, with over two million square feet of cold/dry storage assets under management.
The company will staff the first phase of its Sioux City facility with 60 employees, including 50 production staff at an hourly wage of over $23 per hour.
"We were approached about locating in Iowa and were immediately intrigued given its role as a major food producer in the U.S.," Cold-Link Logistics President Michael Mandich said in a statement. "Sioux City became an ideal location due to many factors, but most importantly we were welcomed by State and Local leaders who truly valued the partnership and investment we were going to bring. Further support from the Federal New Market Tax Credit program enabled us to get this project over the goal line. We are truly excited to become a part of the Sioux City community and the great state of Iowa."
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Early last year, city staff began working with Iowa Area Development Group and Woodbury REC regarding their contact with Cold Link, a company that is actively constructing or acquiring several cold storage facilities in the Midwest. After several months, Cold Link committed to construct a facility on a portion of the 27 Flags site, according to city documents.
Dougherty
"They've been great to work with," Sioux City Economic Development Director Marty Dougherty said of Cold-Link Logistics. "We have so many food processing companies that are growing. This type of facility will facilitate the growth of companies in our area. I think that's one of the great things about this project."
On Feb. 28, the council approved a resolution to accept Cold-Link Logistics proposal to construct the facility. The resolution also directs the city manager to negotiate a development agreement and minimum assessment agreement with Cold-Link.
Under the current terms of the proposed agreement, Cold-Link would purchase 37.04 acres of the City's 27 Flags industrial for $833,400. Cold-Link would also commit to investing $50 million to construct the first phase of the facility, and enter into a minimum assessment agreement of $25 million beginning Jan. 1, 2024, which would continue for a period of 10 years. The city assessor's preliminary estimate of value for the project is approximately $34 million, according to the documents.
A rendering depicts an aerial view of the proposed cold storage complex that Cold-Link Logistics plans to build in Sioux City's Southbridge Business Park.
The city, in turn, would sell roughly 40 acres of the 27 Flags industrial site to Cold-Link for $22,500 per acre, a $7,500 per acre discount. The city would provide 75% property tax rebates on the new incremental taxes created by the value added to the property for a period of seven years. Total tax rebate assistance is estimated at $5.3 million.
The city would also construct Alicia Avenue along the eastern side of the Cold-Link development and a rail spur from the city-owned lead track north to serve the facility. The road is estimated to cost approximately $1.5 million and the rail spur more than $1.3 million. The city would likely receive approximately 80% reimbursement through the IDOT RISE program for the road and 50% of the costs of the rail spur through the Rail Revolving Loan and Grant Program, according to the documents. The city would also spend an estimated $900,000 to construct utilities to serve the site, as well as a much larger portion of 27 Flags.
"Shipments of products from the Sioux City area will be able to go out by rail all over the country, so I think that efficiency will help our other companies locally," Dougherty said. "I think that helps our region grow. That's the kind of thing we like to see in economic development, because we want all of our companies to grow. I think this is the type of development that helps that happen."
Source: https://siouxcityjournal.com/special-section/local/industry/progress-cold-storage-facility-to-be-built-in-sioux-citys-southbridge-business-park/article_e6f861a4-7f46-558f-bfc4-c9f7ac2227ae.html
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