Several rumors had reached the ears of Milford, Iowa city council members regarding the fate of the former Polaris plant on the city's south end.
Some had heard EZGO Golf Carts planned to use the space.
Others had heard Arctic Cat was moving into the manufacturing building.
After a six-month negotiation process, the city finally announced plans for Safco Products to set up shop on the site. The company is part of the larger Liberty Diversified International family of companies, out of Newhope, Minnesota. The Safco branch manufactures office furniture and organizational products. The company is expected to hire approximately 100 employees.
"We've been working diligently," Milford Mayor Bill Reinsbach said. "We had our first meeting in August and we've come to the portion where they have agreed to come into town."
The city was assisted by Iowa Lakes Corridor Development during negotiations with Safco. As part of the arrangement, the Milford City Council considered a resolution of intent to provide economic support for the business.
"This resolution of intent is necessary to demonstrate support for the project to the Iowa Economic Development Authority Board, which will in turn consider state incentives for Safco Products later this week," Kiley Miller, CEO of Iowa Lake Corridor Development said.
The incentives include a 10-year rebate of city property taxes via Tax Increment Financing. The TIF will be capped at $500,000 over a 10-year period. Miller said the current property value assessment is roughly $39,000 annually. The city was also asked to provide a forgivable loan of $500,000 for Safco — $500 for each of the first 100 jobs created.
"The communities that are in competition for these kinds of projects commonly do $3,000 to $5,000 per job," Miller said.
Reinsbach said the city is in the process of creating a jobs trust to fund similar projects, but the Safco project came to the city before the trust could be established.