CEDAR FALLS -- The city hopes Darin Beck's family of businesses is just the first of several to abandon flood-damaged properties and relocate to the industrial park.

On Monday, the City Council approved an incentive package that will allow Reel Deal Holdings, the property arm of Beck's several corporations, to construct a new building on Technology Parkway.

Beck's corporate headquarters had been located on Roosevelt Street, but sustained major damage in the June floods.

"The long term objective was to get them out of the flood plain, get them into a higher value building out in the industrial park and eventually tear down their old building," said Bob Seymour, city economic development manager.

The agreement spells out property tax rebates for eight years, a $554,800 city economic development grant, city demolition of the Roosevelt Street property and three-plus lots in the industrial park.

The new 55,000-square-foot building will house headquarters for Barmuda Corp., T8 Design, Phantom EFX and Phantom Distribution. It would include warehouse and office space.

Value of the building and land is expected to be $4 million.

Seymour has been working with six or eight businesses damaged in the floods that may be interested in relocating to the industrial park. He said the city would like to offer similar plans to help those businesses.

"We're hoping this is the base document and when we're dealing with all those other companies we can bring similar documents back to you," Seymour said.

According to the agreement, taxes on the property would be assessed at 50 percent for eight years. The company would pay $560,000 in property taxes during that time. City staff noted that property taxes for the Roosevelt Street property amounted to about $25,000 annually.

City taxes paid by the companies will be rebated for September of this year and March 2009 as well.

The city calculated the grant to equal 20 percent of the difference between the new building valuation and the valuation of the Roosevelt Street site.

The city would be responsible for demolishing the Roosevelt Street building. Seymour estimated that would cost $30,000 to $50,000. He expects the Federal Emergency Management Agency would have money available to pay for it.

Beck said about 100 people would work in the new building.

In other business, the council approved an incentive package for an expansion at Team Technologies. Team plans a $1.6 million, 7,000-square-foot addition to its office and data center facility.

The council approved a five-year partial property tax exemption. Team would pay 25 percent of taxes on the addition in the first year, then pay an additional 15 percent in subsequent years until reaching its full tax burden in the sixth year.

Once the Team facility is equipped for use, the company's investment in the expansion is expected to be $7 million.

Contact Jon Ericson at (319) 291-1461 or jonathan.ericson@wcfcourier.com.