Edible Garden AG Inc., based in Belvidere, New Jersey, plans to spend $75 million to turn the building at 401 Des Moines St. into a ready-to-drink beverage production hub that will initially employ 42 people.

Webster City Mayor John Hawkins said the company intends to start production by the end of next year and then double its production as soon as possible.

“I’m excited to see them come,” he said. “It’s another positive thing we have going on.”

“I think long term it gives us potentially another big employer,” he added.

On Friday morning, the Iowa Economic Development Authority board gave the plan a boost by awarding a $2.66 million incentive package.

It consists of two parts: a $2 million investment tax credit and a $660,000 refund of sales taxes paid during the renovation of the building.

“We are pleased to receive this support from the state of Iowa as we continue to expand into higher-margin, shelf-stable nutrition categories,” Jim Kras, the chief executive officer of Edible Garden, said in a written statement.

“This facility represents a natural extension of our Farm to Formula platform, combining our agricultural expertise, advanced technology, and sustainability-driven approach to produce innovative, better for you beverages at scale,” he added. “The transformation is also expected to enhance supply chain integration and operational efficiency across our business, while supporting broader regional supply chain development and reinforcing our commitment to sustainable, resource-driven production.”

In addition to the state assistance, Edible Garden will also receive $6.5 million from the city of Webster City over 15 years. That money will come from tax increment financing, not the general fund that pays for things like police and fire protection.

Tax increment financing occurs when increased property tax revenue from a designated area is set aside to be reinvested in that area.

Hawkins described the state incentives as ” definitely critical to the project.”

The company plans to call its Webster City location Edible Gardens Prairie Hills.

It is located in a 400,000-square-foot building that was constructed as a warehouse to hold finished washing machines from the Electrolux plant. More recently, it was the home of VeroBlue and later Natural Shrimp.

“They are actually in there right now cleaning it out,” Hawkins said.

He said Edible Garden hired some former employees of Natural Shrimp who have been working in the building for a couple of weeks. Now that the state incentives have been awarded, Hawkins said the company can “double down” on its efforts.