The Ankeny City Council voted Monday to approve a development agreement for a $25 million expansion of the Mrs. Clark’s production facility.

According to the agreement, the company plans to expand its facility at 700 and 704 S.E. Dalbey Drive by 90,000-100,000 square feet. The food manufacturer also plans to create as many as 15 new jobs. Most of the new space will be dedicated to production with some of the space being used as offices.

Mrs. Clark currently employs 135 people at its Ankeny site, where it makes mayonnaise, salad dressings, juices and sauces for various major food labels for distribution worldwide.

As part of the expansion, Mrs. Clark’s will demolish a 51,900-square-foot warehouse and office building on one of its parcels to make room for the expansion.

Grant Hoppe, the company’s managing partner, said before Monday’s meeting that the demolition is expected to begin this year with the expansion project being complete in late 2026.

According to a city staff report, Mrs. Clark’s will receive a five-year sliding scale property tax rebate not to exceed $360,000. The new facility will primarily be dedicated to juice production, the report said.

Mrs. Clark’s primary export markets include the Middle East, Canada, the Caribbean and Central America, Hoppe said.

The expansion will increase the taxable valuation of the property by about $8.5 million, and generate about $283,000 in additional revenue for all taxing entities once it’s no longer eligible for incentives, the report said.

Derek Lord, the city’s director of economic development, said the Iowa Economic Development Authority Board is expected to consider an application from Mrs. Clark’s for incentives that would require the company to meet wage requirements outlined under the state’s High Quality Jobs Program.

It is the second expansion for the company in the past five years. In 2020, Mrs. Clark’s expanded its Ankeny location by 60,000 square feet.

Hoppe said before the meeting that Ankeny is centrally located and is close to the agricultural sector, which produces some of the primary ingredients used in the products Mrs. Clark’s makes.

“Iowa produces more eggs and soybean oil than any other area in the country, and eggs and soybeans are the two main ingredients when it comes to mayonnaise and salad dressings,” he said.

Hoppe said Mrs. Clark’s uses about 35,000 acres of soybeans that are converted into soybean oil and more than 1 million pounds of egg yolks each year in the production of its products.

“So with the two main components [of ingredients] made in Iowa and the state having such a strong labor market, those are contributing factors for why, for us, it’s worth the investment and to continue the investment in Ankeny,” he said.

According to data from the U.S. Department of Agriculture’s National Agricultural Statistics Service, Iowa produces more than 16 billion eggs a year, the most of any state. It also was a leader in soybean production, with an estimated 598 bushels of soybeans harvested in 2024, data showed.

Mrs. Clark’s also buys its boxes and packaging from companies in Iowa, Hoppe said.

“So a lot of the inputs we need are already here in Ankeny or in the state,” he said.

Lord said in comments made before the meeting that it’s always great to have a company invest in the community.

“It demonstrates that you’ve created a climate in your community and in your region that’s successful for their business,” he said ahead of today’s meeting. “So to see a company like Mrs. Clark’s continue to invest every five years or so in a new facility shows that what the state of Iowa, the city of Ankeny and our regional partners are doing to create a climate for business success is working.”

This story updates a previous version with the Ankeny City Council’s approval of the development agreement with Mrs. Clark’s Foods.