By DOUG SCHMITZ

Iowa Correspondent

St. LOUIS, Mo. — Post Holdings, Inc., a consumer packaged goods holding company, announced plans Feb. 16 for its Michael Foods business to construct an $85 million, 150,000 square-foot pre-cooked egg manufacturing and distribution facility in Norwalk, Iowa.

“We looked at numerous locations in the Midwest, and Norwalk had many advantages,” said Steve Schonhoff, senior vice president of integrated supply chain for Michael Foods and Bob Evans Foods. “We look forward to Michael Foods becoming a preferred employer in the area and being part of the community.”

Headquartered in Minnetonka, Minn., and a subsidiary of Post Holdings, Michael Foods is a $2 billion manufacturer and distributor of foodservice, food ingredient and retail offerings, and the nation’s largest processor of value-added eggs. Its foodservice brands include Crystal Farm, Better’n Eggs, Allwhites liquid eggs, Papetti’s and Simply Potatoes.

“We are delighted that the internal growth at Michael Foods supports this expansion,” said Rob Vitale, Post Holdings president and CEO. “We believe it will further enhance our position as the nation’s leader in valued-added egg products.”

On Feb. 16, the Iowa Economic Development Authority (IEDA) board unanimously approved an estimated $4 million in state incentives toward the facility, with the city of Norwalk expected to provide more than $10 million in local taxpayer incentives.

The IEDA also awarded $3.4 million in investment tax credits to the company and $492,450 in tax refunds, the Des Moines Register reported.

In addition, to help offset high development, utility and property tax costs for the company, the city of Norwalk has implemented a new bulk water user rate and approved a 20-year, 65 percent tax increment financing (TIF) rebate at about $9.7 million, as well as a $73,000 high-quality jobs grant.

State incentives will support 17 jobs at an hourly wage of $24.38, the Des Moines Business Record reported.

Moreover, Michael Foods, operating as Michael Foods Egg Products Co., expects to spend nearly $67 million on manufacturing equipment and equipment and about $17.5 million on land and building construction, the Register reported.

Norwalk was selected as the preferred site over other sites in Iowa and Nebraska due to its strong economy, good workforce and proximity to interstates 35 and 80, Highway 5 and the Des Moines International Airport. “Having a certified shovel-ready site was crucial to landing this game-changing project in Norwalk,” said Hollie Askey, city economic development director.

“We’re grateful to the Greater Des Moines Partnership and the Iowa Economic Development Authority for their assistance in attracting quality jobs to our city.”

With construction slated to begin this summer, the south-central Iowa plant, which will process eggs and pre-cooked egg products, will be completed in the fall of 2019. The company will complete the 35-acre land purchase next month.

In addition, contingent upon securing state and local assistance, the Warren County facility is expected to create 100-150 new jobs initially, ranging from entry-level to skilled in management, operations, finance and production.

Norwalk City Manager Luke Nelson told KCCI in Des Moines the plan holds great promise for future growth and for taxpayers. “We’re probably just under 12,000 in population, so it’s a significant impact for us.”