Dyersville City Council voices support for new manufacturing facility

DYERSVILLE, Iowa — Dyersville City Council members on Tuesday voiced their support for a manufacturing company hoping to open a new facility in the city early next year.

The council members in attendance unanimously voted to pass a resolution to approve the state incentives application for Zero Zone, which makes refrigeration and freezing units for grocery and convenience stores. Council Member Jim Gibbs was not present.

The company plans to move into a building at 2336 Industrial Parkway SW next year, pending state approval of incentives for the facility.

“It’s an honor for (Zero Zone) to choose our town,” Mayor Jim Heavens said. “It really is.”

Rick Steer, vice president and general manager of the Zero Zone systems division, told the council that the company hopes to employ more than 50 people in Dyersville. He said Zero Zone currently has about 500 employees at locations in Minnesota and Wisconsin.

Steer said the company has sought a new location for expansion after Zero Zone saw “significant growth” over the past two years.

“We’re a Midwestern company, and we searched the Midwest,” he said. “Name a state, and we vetted those states. And we ended up here.”

Pending further state approval for incentives, Steer told council members that Zero Zone hopes to begin production in Dyersville as early as January. He added that Zero Zone makes products for companies such as Kwik Trip, Hy-Vee and Costco.

In addition to showing support for the Zero Zone facility, the council’s resolution agrees to match at least 20% of the state incentives that would go toward the project, according to city documents. The facility is expected to have a capital investment of more than $2 million.

The city’s match will stem from an agreement already in place between the city and the property developer of the speculative building, Advanced Properties. The agreement states that a portion of the tax rebate on the new valuation of the 52,500-square-foot building will go toward the project for a 15-year period.

While the exact amount of tax rebates going to Zero Zone will be determined later when the facility’s new valuation is assessed, council documents state that the total amount of tax rebates could reach $3.9 million over 15 years.

City Administrator Mick Michel said that the 15-year period will not start until 2022, as the building is still under construction.

“The city already made this commitment when the structure went up, and it was a good agreement,” Michel said. “I think we’re reaping the rewards as a community to bring in as great of a company as Zero Zone as part of the community.”

The Iowa Economic Development Authority will consider Zero Zone’s application and funding incentives on Sept. 17.