The planned expansion for Kalona Plastics, Inc. will do more than create 30-40 jobs; it will give Kalona a 280-foot tunnel to provide a shelter from tornadoes.

While that is a nice “dividend,” the Kalona Council’s approval Monday of a Community Economic Betterment Area (CEBA) grant request for the company is based more on the increased economic impact.

As part of the grant procedures, the city will provide in-kind matching funds from a five-year tax abatement and actual, physical help with grading at the site.

Steve Sawyer, comptroller for Kalona Plastics and its parent company, Victor Plastics, said the local company plans a 23,000 square foot expansion that, with new equipment, is estimated at $1.2 million. Included in the plan is a 280 foot utility tunnel for water and other lines ( all of which will be covered). The tunnel will be 12 foot wide and ten foot high, and the company said it can be used as a shelter when there is the threat of a tornado.

“We plan to offer it for the residents of the trailer court,” said Plant Manager Mike Vogel. He added that the tunnel will be big enough “to accommodate most of Kalona.”

However, “it won’t be ready for this season.”

Mid-summer

Sawyer said if all goes as planned, including the financing and paperwork, construction will be underway by mid-summer and completed by winter.

The company expects full completion, which means installation of new equipment and changes in its other plants, to take approximately three years.

Sawyer said that plans are to move the manufacturing operation to the new building and use the existing one as a warehouse.

“It will improve efficiency, material handling and other things,” he said.

The CEBA grant, which formally has to be done by the city on behalf of a company, seeks $100,000 from the state: $50,000 in a forgivable loan and $50,000 in a low interest loan.

Matching

The city’s matching funds will provide $16,621 through a graduated five-year tax abatement and a possible $10,000 from city and utility services, noted City Administrator Doug Morgan.

Sawyer said he had estimated that actual cost of the in-kind work from the city for grading at $2,500.

Alliant Utilities also will provide in-kind assistance, some of which involves moving a transformer and providing additional lines.

Kirkwood Community College also may enter into a partnership with the company to provide industrial job training sites. The arrangement offers paid jobs—at prevailing county competitive scale—for those accepted into the job training.

The request is similar to what Kalona did for CIVCO Medical Instruments a few years ago, Morgan said.

Other

In other business, the council:

•learned that interviews are underway for another city employee to replace Rodney Dumont who resigned recently.

•learned that a large tree went down in the Kalona City Park during the weekend storms. There are four trees left from the Trees Forever tree sale which can replace the tree.

•tabled action on the Sharon Hill Cemetery sign pending more information.

•tabled action about re-roofing the Kalona Community Center to allow time for more information regarding bids.

•approved paving 3rd St. north from Highway 22 to G Ave. and asphalting C Ave. west from 5th St. to Highway 1. Morgan was authorized to see about specifications for bids.

•approved a $215 charge for all returned checks.

•approved a request by Kinneer Home Furnishings, Inc to have a semi-trailer on B Ave. from May 17-24.