An Ankeny-based business that delivers meals nationwide to senior citizens is planning a $5 million expansion to its headquarters, city documents show.

PurFoods LLC, which does business as Mom’s Meals, distributes home-delivered meals in all 50 states and Puerto Rico, Brian Hoey, the company’s chief risk officer said during Tuesday’s Ankeny City Council meeting. Last week, the company delivered more than 1 million meals, he said.

“With COVID, our business has already grown 50% this year,” Hoey said. “The [new] office will help us expand our corporate offices and some of our warehouse offices.”

The company, located at 3210 S.E. Corporate Woods Drive, plans to construct a 22,500-square-foot office addition to the west side of their facility, which was built in 2015.

The expansion is expected to increase the company’s workforce by 68, Derek Lord, Ankeny’s economic development director, said during the council meeting. Currently, 544 people work at the company’s Ankeny headquarters; Mom’s Meals employs 1,927 full-time workers nationwide, a company spokesperson said.

Construction would begin this fall with completion expected in 2021.

The council on Tuesday approved a development agreement with PurFoods that would provide property tax rebates over five years of up to $200,000. During the five years, about $34,000 in new property tax revenue is expected to be generated. After the five years, the expansion is expected to generate about $100,000 in new property tax revenue, according to city documents.

The expansion is expected to increase the property’s taxable valuation by $3 million, according to a city document.

The development agreement is the third the city has had with PurFoods, Lord said.

“As part of their second development agreement, we included clawback provisions on the job creation,” he said. “At that time, they anticipated creating 17 jobs. … Over the three-year period, they created over 100 jobs. I’d say they are definitely in compliance with all the existing terms of the previous development agreements.”

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