A meat stick manufacturer's expansion into Burlington could create 150 jobs. Here's what to know.
The potential expansion of an Illinois-based meat snack manufacturer into Burlington may bring with it about 150 jobs, 45 of which would pay $18.94 per hour.
Western's Smokehouse and Meat Market, of Galesburg, is on track to lease the building at 3800 West Ave., made available by the February closure of Integra Pool Covers LLC, from a Des Moines-based investor who is expected to close on the property this week, according to Jeremy Hess, director of economic development for the Greater Burlington Partnership.
Hess and Crystal Bohm, chief human resources officer for Western's, stressed that the expansion into Burlington, being driven by an increased demand for product, is not certain. Bohm said more is expected to be known next week and declined to comment further until plans have been finalized.
If the lease is signed, the company plans to invest $20.7 million into the possible expansion, which, if all goes according to plan, is expected to be complete by May.
"It's pretty risky for this company to do this," Hess said. "To put $20-plus million into a building that you don't own is pretty rare, so they have to feel comfortable with the new owners and to have some trust there. So that's been a challenge, but I think we're there."
Of that investment, about $9 million would go toward tenant improvements, while another $10.5 million would be used for manufacturing machinery and equipment, according to plans outlined in the Iowa Economic Development Authority Board's June 17 meeting agenda.
During that meeting, the board awarded a $200,000 forgivable loan through the High Quality Jobs program to the expansion. The company also will receive $270,042 in state and local tax benefits, as well as a $40,000 local match to be paid through Burlington's Economic Development Fund, which comes from Local Option Sales Tax dollars.
Hess said those incentives will be paid out over time and only if the company fulfills the plans laid out in its application, which includes the capital investment, job creation and pay.
"These incentives are tied to the performance of making the capital investment, hiring the jobs at the wage that they said they would and so forth," Hess said. "Leisure Pools, they got an incentive package, but nothing ever happened there because they never actually fulfilled their commitment to fill those jobs."
Western's Smokehouse and Meat Market's potential expansion comes after another manufacturer's abrupt closure
Leisure Pools Group, one of the world’s largest composite fiberglass swimming pool manufacturers, owns Integra Pool Covers, which manufactures automatic swimming pool covers.
Integra purchased the former Dresser Rand building in March 2021 for $1.575 million with the intent of creating 80 new jobs with a minimum starting wage of $14 per hour over a three-year period. Of those jobs, at least 40 were to pay at least $21.61 per hour. The company also planned to spend $3.9 million to renovate the Burlington factory.
Previously: Details of pool company's move to Burlington, new jobs come into focus
It was under those terms that the IEDA in early 2021 signed a contract to provide the company with $643,000 in tax credits.
Those tax credits never were paid out, however, as Integra failed to create the jobs it had promised.
In October, the Burlington plant had only eight production workers, according to Chris Tucker, a special representative of the International Association of Machinists and Aerospace Workers union.
For subscribers: Integra closure in Burlington follows labor law violation charges, unionization of employees
Frustrated by their $14-per-hour pay and six-month evaluation-based pay raises that put workers more than four years out from the $21.61 wages that had attracted them to those jobs, production workers voted to unionize in November. At that time, only six of those workers remained at the plant.
Integra announced in February that it would cease production in Burlington in favor of moving those operations to Knoxville, Tennessee.
"We're sad to see what happened with Leisure Pools, but they were probably half the jobs that this is going to turn out to be if everything goes ahead," Hess said of Western's Smokehouse. "Sometimes when things look the darkest, they can turn around and be good news for your community after all."
'I'm not counting my chickens until they hatch': Expansion still has potential to fall through
Western's Smokehouse has production facilities in Galesburg and Springfield, Illinois, as well as one in Greentop, Missouri.
The possible expansion has been two months in the making, according to Hess, who has been working to bring together the involved parties. During that time, Hess said, plans for the company's Burlington presence have nearly fallen through on more than one occasion.
"It's been touch and go," Hess said, explaining communication barriers are not uncommon when dealing with multiple parties. "I'm not counting my chickens until they hatch, but it sounds like that lease could happen any day now."
Hess said the number of jobs the expansion would create is an appropriate fit for Burlington.
"We don't go chasing the 300-, 500-job creation projects so much," Hess said. "Workforce is a struggle, but projects like these and smaller ones like Frito-Lay are right in our wheelhouse."
Frito-Lay's distribution center that opened in April at 435 W. Burlington Ave. was expected to create about a dozen jobs.
More: Frito-Lay's new Burlington distribution center is now open. Here's what's inside.
What to know about Western's Smokehouse and Meat Market
Founded in 1978, Western's Smokehouse Partners is a family-owned co-manufacturer of meat stick snacks, meaning already processed and frozen meat would be delivered to the Burlington facility, where it would be prepared for brands such as The New Primal.
According to its website, Western's offers three protein and ingredient lines: premium, select and mainstream.
Premium line products are made from welfare certified grass-fed and free-range proteins, are Keto and Paleo friendly, non-GMO, gluten-free and contain no sugar, artificial flavors or ingredients, nitrates, nitrites or MSG.
Select line products also are artificial flavor-, nitrate-, nitrite-, MSG- and gluten-free.
The mainstream line contains no artificial flavors or ingredients.
Antibiotics are not used in any of its products.
"These guys are going to make a better-for-you meat stick," Hess said. "They're pretty specific about what goes into their product."
Michaele Niehaus covers business, development, environment and agriculture for The Hawk Eye. She can be reached at mniehaus@thehawkeye.com.
This article originally appeared on The Hawk Eye: Western's Smokehouse and Meat Market may bring 150 jobs to Burlington
