Sioux City City Council voted to terminate the city's contract with Curly's Foods.
The city of Sioux City entered a contract with the Iowa Economic Development Authority and Curly's Foods last year.
The contract gave Curly's sales tax refunds and income tax credits through the IEDA to help with their $9 million expansion project.
The construction is on schedule, but Curly's says it won't meet employment projections, so they requested the agreement be terminated.
"It's nothing we did, nothing they did, other than just the equipment came, they were able to do more than they thought they would have to do," said Sioux City Mayor Bob Scott. "They're still growing, it's not like they're going backwards at all, it's just that they didn't meet that particular employment number."
Curly's previously planned to hire 30 new employees in addition to the expansion.
The project includes a new production space and new processing equipment.