by Marianne Gasaway
The former Serta bedding manufacturing facility will soon be re-opened.
North Iowa Corridor Economic Development Corporation CEO Chad Schreck informed the Clear Lake City Council of pending action on the sale of the building at the Council’s Tuesday, July 5, meeting.
“I can’t divulge who the purchaser of that is…. but they have selected the highest bidder, or are working through the process of working through the purchase agreement with them,” said Schreck. “As they put those documents together here over the coming weeks, we’ll be able to divulge a little bit more hopefully by next council meeting that it will be ok to go public with.”
Schreck went on to state the building will be utilized by a light industrial manufacturer. Approximately 35 to 40 new jobs are anticipated in the first year.
A Serta Simmons Bedding Company Spokesperson declined to elaborate on a pending sale, saying “At this time, we have no news to share.” Serta built the 113,000 square foot manufacturing facility on 14-acres in Clear Lake in 1998. When its closing was announced in March, 86 persons were employed there.
The City Council is expected to be asked to offer an incentive package to the facility’s buyer.
Schreck said a seven-year, 75 percent TIF tax rebate on the new valuation of the facility is anticipated.
“It’s currently valued at about $3.4 million,” he told the Council. “In talking with the assessor, it sounds like they’ll probably mark that up close to whatever the purchase price is, which is in the $6 million range. So we’ll be looking at the TIF agreement to impact that at approximately $2.5 million.”
The Iowa Economic Development Authority’s High Quality Jobs Program could also provide assistance to the buyer.
According to Schreck, the former Serta building is the first significant manufacturing space available in Clear Lake for several years.
“This building really represented a big opportunity, and it was one we prioritized right from the get-go,” he said.