MASON CITY — The City Council in Mason City Tuesday night approved a development agreement between the city and Kraft Heinz Foods Company for a $62.8 million addition to their facility in northwestern Mason City to produce a new slate of dessert products.

The expansion would include an 8000-square foot addition to the north side of the plant to build a 60-degrees Fahrenheit storage area for temperature-sensitive ingredients, a 1300-square foot ammonia engine room in an effort to eliminate fluorocarbons from the plant.

Plant manager Janelle Kruger says Kraft Heinz appreciates the support of the city in this project. “With this support, Kraft Heinz is able to proceed with a major investment of our Mason City facility. The investment will ensure our facilities on the cutting edge of food manufacturing. Our strong partnership with the city and the people of Mason City and the surrounding area is a key reason why we’re committed to the long-term support of this facility and the community, and we are excited for this expansion at our facility here in Mason City.”

The Iowa Economic Development Authority back in May approved $232,500 in tax refunds and research activities tax credits as part of the expansion project. The City Council approved a $185,000, ten year tax increment financing rebate from the city as long as Kraft Heinz hires 10 new full-time employees by June 30th 2021 and a total of 32 full-time employees by May 31st 2022.