DES MOINES, Iowa -- Citing "significant business growth,"convenience-store chain Kum & Go LC is expanding the size and scope of its new downtown Des Moines, Iowa, headquarters, and state incentives will more than double, reported The Des Moines Register.
The Iowa Economic Development Authority Board approved $18.59 million in economic incentives for Krause Holdings Inc., Kum & Go's parent company, which plans to relocate its West Des Moines headquarters to a new, 160,000-square-foot, five-story office building across from the Pappajohn Sculpture Park on the Western edge of the city.
By approving the measure, the board rescinded a $9 million incentive package it had given Kum & Go last June, the report said. The chain now expects the new headquarters to cost $151 million, up from a previous estimate of $92 million.
Kum & Go spokesperson Kristie Bell said the company made the original estimates before it had selected an architect.
The company said it is expanding "significant business growth"
"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," she told the newspaper. "We also added underground parking, which increases project costs."
The state's updated incentive package includes $14.3 million in investment tax credits and $4.29 million in sales, service and use tax refunds. In return, Kum & Go must create 90 new jobs that pay a minimum of $25.52 per hour. The company is also seeking $20 million in tax-increment financing from the city of Des Moines.
"The project is definitely a cornerstone in the Western edge of downtown Des Moines," Economic Development Board member Larry Den Herder said, according to the paper. "The area is very excited about this project."
West Des Moines, Iowa-based Kum & Go has more than 4,700 employees and more than 430 stores in 11 states: Iowa, Arkansas, Colorado, Minnesota, Missouri, Montana, Nebraska, North Dakota, Oklahoma, South Dakota and Wyoming.
Click here to view the full Des Moines Register report.
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