This story is a part of the QCBJ’s Newsmakers edition. This year-end wrap-up from the staff of the Quad Cities Business Journal is a compilation of the year’s most noteworthy articles and projects, as told through stories that appeared in the bi-weekly issues of the QCBJ. This story was originally published in June 2022. For […]
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This story is a part of the QCBJ’s Newsmakers edition. This year-end wrap-up from the staff of the Quad Cities Business Journal is a compilation of the year’s most noteworthy articles and projects, as told through stories that appeared in the bi-weekly issues of the QCBJ.
This story was originally published in June 2022.
For Davenport Mayor Mike Matson, the recent decision by Fair Oaks Foods to build a $134 million pork production plant in his city sends an important message about the region: “Davenport is open for business.” And so is the Quad Cities, he said. ”Their investment in our community shows that the QC and Davenport is the ideal place for companies to locate and grow businesses.” There is growing evidence to suggest that is true, and also to show that projects like this don’t happen by accident. Rather, they are the product of planning, preparation, and collaboration by a committed group of business, government and development players. Take Fair Oaks Foods’ plans for a 150,000-square-foot fully cooked bacon production facility that it announced on Tuesday, June 14. The new project will be built at the Eastern Iowa Industrial Center (EICC) and near the Amazon robotics fulfillment center now under construction. The Fair Oaks development — that will employ 247 area workers — was a year in the making. Construction is expected to begin this summer on the 32-acre site near Interstate 80. The company plans to start operations in early 2024, according to Fair Oaks Foods, the City of Davenport, the Greater Davenport Redevelopment Corporation (GRDC) and the Quad Cities Chamber of Commerce. The family-owned processing company, headquartered in Pleasant Prairie, Wisconsin, was founded in 1985 and has grown to become the 11th largest black-owned business in the United States. It produces and supplies a variety of protein products. On Wednesday, June 15, the project took another step forward when the Davenport City Council gave preliminary approval to a resolution of support and financial contribution. Under the agreement, the city would provide a 60% tax increment financing (TIF) rebate to the company for 15 years, minus $1.1 million for the upfront cost of a pretreatment facility. Then, on Friday, June 17, Joseph Freda, Fair Oaks’ chief operating officer, told the QCBJ “We received the award today from the IEDA for the High Quality Jobs Program (HQJP) — tax credits. We are very appreciative for the full support of the City of Davenport and the State of Iowa. This is an extremely exciting time for Fair Oaks Foods in our growth as a company, and we are happy to partner with the City of Davenport and the State of Iowa on our new home.” In exchange for the incentives, the development is expected to have an annual economic impact of $182 million — making it the largest single business attraction project in the region’s history. According to Jennifer Walker, chamber vice president, marketing & sales, among the factors that go into economic impact figures are: the company’s industry, number of jobs created, total payroll, land cost, building construction costs, and investment in machinery and equipment. “The company will make the investment, construct the building, and employ their workers — this is their direct economic impact,” she said. “Then the company spends money with their suppliers and their suppliers add additional workers and capacity to their operations to meet demand. Finally, the employees at the company and their suppliers will spend money within the Quad Cities economy on houses, cars, groceries, entertainment, etc. The money turned over several times within the economy, which causes a multiplier effect.” Also apparent in the Fair Oaks Foods project deal is the importance of nearby suppliers and support businesses. “Davenport was a desirable location for Fair Oaks Foods in large part because of Iowa’s dominance in the pork production market,” said Sarah Ott, chief strategy officer for the City of Davenport. “It is anticipated that many local and regional businesses will benefit as partners in Fair Oaks Foods production.” Mike Oberhaus, the Quad Cities Chamber’s interim CEO and chief strategy officer, said other factors businesses consider in expanding or locating in the Quad Cities include: “availability of sites, access to sufficient utilities, proper zoning, skilled workforce availability and culture fit.” Comments that the leaders with Fair Oaks Foods made in announcing their deal indicate the Davenport site checked all the important boxes. “The opportunity that the city has extended to us is the right fit, at the right time, for Fair Oaks Foods,” the company’s CEO and President Michael Thompson said at the June 14 news conference in Davenport. Mr. Freda, the COO said then, “Fair Oaks Foods prides itself on the relationships that it holds. We continue to build our legacy through strategic partnerships that share our values of trust and integrity. This was one of the main pillars when we chose The Austin Company to guide us in our search for a location to support our growth.” (The Austin Co. was retained as the project’s design-builder.)
For Davenport Mayor Mike Matson, the recent decision by Fair Oaks Foods to build a $134 million pork production plant in his city sends an important message about the region: “Davenport is open for business.” And so is the Quad Cities, he said. ”Their investment in our community shows that the QC and Davenport is the ideal place for companies to locate and grow businesses.” There is growing evidence to suggest that is true, and also to show that projects like this don’t happen by accident. Rather, they are the product of planning, preparation, and collaboration by a committed group of business, government and development players. Take Fair Oaks Foods’ plans for a 150,000-square-foot fully cooked bacon production facility that it announced on Tuesday, June 14. The new project will be built at the Eastern Iowa Industrial Center (EICC) and near the Amazon robotics fulfillment center now under construction. The Fair Oaks development — that will employ 247 area workers — was a year in the making. Construction is expected to begin this summer on the 32-acre site near Interstate 80. The company plans to start operations in early 2024, according to Fair Oaks Foods, the City of Davenport, the Greater Davenport Redevelopment Corporation (GRDC) and the Quad Cities Chamber of Commerce. The family-owned processing company, headquartered in Pleasant Prairie, Wisconsin, was founded in 1985 and has grown to become the 11th largest black-owned business in the United States. It produces and supplies a variety of protein products. On Wednesday, June 15, the project took another step forward when the Davenport City Council gave preliminary approval to a resolution of support and financial contribution. Under the agreement, the city would provide a 60% tax increment financing (TIF) rebate to the company for 15 years, minus $1.1 million for the upfront cost of a pretreatment facility. Then, on Friday, June 17, Joseph Freda, Fair Oaks’ chief operating officer, told the QCBJ “We received the award today from the IEDA for the High Quality Jobs Program (HQJP) — tax credits. We are very appreciative for the full support of the City of Davenport and the State of Iowa. This is an extremely exciting time for Fair Oaks Foods in our growth as a company, and we are happy to partner with the City of Davenport and the State of Iowa on our new home.” In exchange for the incentives, the development is expected to have an annual economic impact of $182 million — making it the largest single business attraction project in the region’s history. According to Jennifer Walker, chamber vice president, marketing & sales, among the factors that go into economic impact figures are: the company’s industry, number of jobs created, total payroll, land cost, building construction costs, and investment in machinery and equipment. “The company will make the investment, construct the building, and employ their workers — this is their direct economic impact,” she said. “Then the company spends money with their suppliers and their suppliers add additional workers and capacity to their operations to meet demand. Finally, the employees at the company and their suppliers will spend money within the Quad Cities economy on houses, cars, groceries, entertainment, etc. The money turned over several times within the economy, which causes a multiplier effect.” Also apparent in the Fair Oaks Foods project deal is the importance of nearby suppliers and support businesses. “Davenport was a desirable location for Fair Oaks Foods in large part because of Iowa’s dominance in the pork production market,” said Sarah Ott, chief strategy officer for the City of Davenport. “It is anticipated that many local and regional businesses will benefit as partners in Fair Oaks Foods production.” Mike Oberhaus, the Quad Cities Chamber’s interim CEO and chief strategy officer, said other factors businesses consider in expanding or locating in the Quad Cities include: “availability of sites, access to sufficient utilities, proper zoning, skilled workforce availability and culture fit.” Comments that the leaders with Fair Oaks Foods made in announcing their deal indicate the Davenport site checked all the important boxes. “The opportunity that the city has extended to us is the right fit, at the right time, for Fair Oaks Foods,” the company’s CEO and President Michael Thompson said at the June 14 news conference in Davenport. Mr. Freda, the COO said then, “Fair Oaks Foods prides itself on the relationships that it holds. We continue to build our legacy through strategic partnerships that share our values of trust and integrity. This was one of the main pillars when we chose The Austin Company to guide us in our search for a location to support our growth.” (The Austin Co. was retained as the project’s design-builder.)