Kum & Go to Receive $18.59M in Iowa Economic Incentives
WEST DES MOINES, Iowa — Kum & Go LC will receive more than twice the amount of state incentives for its new headquarters in downtown Des Moines as previously expected, according to a Des Moines Register report.
On Aug. 21, the Iowa Economic Development Authority Board approved $18.59 million in economic incentives for Krause Holdings, parent company of the convenience store chain.
The new incentive offering replaces a $9-million package the board approved in June. Since then, Kum & Go revised and expanded plans for its 160,000-square-foot, five-story office building that will be erected in downtown Des Moines. The cost for the project is now expected to reach $151 million, up from the $92 million that was estimated before the company chose an architect.
"Through the design process, the building's size and scope increased to accommodate future needs because the building's design would make it difficult to add on later," stated Kristie Bell, spokeswoman for Kum & Go. "We also added underground parking, which increases project costs."
The updated incentive package consists of $14.3 million in investment tax credits and $4.29 million in sales, service and use tax refunds. To receive the money, Kum & Go must create 90 new jobs that pay a minimum of $25.52 per hour.
Kum & Go is also seeking $20 million in tax-increment financing from the city of Des Moines, according to the report.
"The project is definitely a cornerstone in the western edge of downtown Des Moines," stated Economic Development Authority Board member Larry Den Herder. "The area is very excited about this project."
Kum & Go operates 432 c-stores in Iowa, Arkansas, Colorado, Minnesota, Missouri, Montana, Nebraska, North Dakota, Oklahoma, South Dakota and Wyoming.