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Economic Dev. Board Announces Largest Capital Investment in History of Iowa

This news story was published on February 20, 2012.
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(DES MOINES, IA) – The Iowa Economic Development Authority (IEDA) board today awarded financial assistance to four companies for job creation and expansion projects.  Today’s awards will assist in the creation of 254 new jobs, retention of three jobs and will account for $1.3 billion of new capital investment to the state.

“I am very excited to announce that with action today from the Iowa Economic Development Board, Iowa is one step closer to landing the largest capital investment project in the history of the state of Iowa,” said Governor Terry Branstad.

“In addition to the significant investment Iowa Fertilizer Company’s proposed project would make in southeast Iowa, it will also bring good, high-paying jobs to an area of our state that has had its share of challenges,” said Lt. Gov. Kim Reynolds.

Iowa Fertilizer Company is a subsidiary of Orascom Construction Industries, which is one of the world’s largest fertilizer producers.  The IEDA Board approved direct financial assistance as well as tax incentives for a proposed project to build a new large-scale fertilizer plant in Wever, located in Lee County.  The company is also expected to receive local financial assistance from Lee County and the IDOT board will consider infrastructure assistance.  The new plant would supply needed ammonia and other nitrogen fertilizers to farmers in Iowa and the Midwest.  The project represents an investment in excess of $1 billion and is expected to create 165 permanent jobs.

In addition to the permanent jobs the project would create, approximately 1,500-2,000 construction-related jobs would also be expected.  Debi Durham, director of the Iowa Economic Development Authority, said, “Iowa Fertilizer Company’s proposed project could have a huge impact for our entire state that will benefit us for years to come.  Economic development takes many forms but is best achieved when the assets of the location align perfectly with the strengths of the company making the investment.” She continued, “That is exactly why it is essential we have the right tools to continue to compete for global projects of this magnitude.”

The board also approved assistance for planned or proposed projects located in Cedar Falls, Riverdale, and Burlington.

Cedar Falls web strategy company expanding operations

Tactical 8 Technologies LLC (d/b/a T8 Webware), a financial web strategy and personalized services firm, was awarded $45,000 in direct assistance to expand their Cedar Falls facility to develop and implement new products.   The company, based out of Cedar Falls, is a provider of custom mobile applications, personalized payment card services and websites to financial institutions.  The project is expected to create 15 new jobs and represents a $75,000 capital investment. 

Schebler continues to innovate

The Riverdale-based Schebler Company, a leading specialty manufacturer that provides industrial chimney systems, specialty fabrication services, residential and commercial heating/cooling solutions and food manufacturing equipment, was awarded tax benefits through the High Quality Jobs Program.  The company proposes to purchase a fully-automatic fabrication system to roll and laser-weld their chimney products that will allow the company to capture additional business from new products, grow their market share of historical products and ultimately enhance overall efficiency and expand capacity.  The $1.5 million capital investment is expected to create three new jobs and retain three jobs.

Burlington manufacturer proposes $25.8 million project

The board awarded Winegard Company tax benefits through the Enterprise Zone program.  The Burlington company is a leading manufacturer of TV reception products and has outgrown its current facility.  As a result, the company is considering the purchase and redevelopment of the Fairway Shopping Center for additional manufacturing and warehouse capacity.  The additional capacity will also allow the company to increase market share and provide better process efficiencies.  This project is expected to create 71 new jobs.

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4 Responses to Economic Dev. Board Announces Largest Capital Investment in History of Iowa

  1. Avatar

    Anonymous Reply Report comment

    February 20, 2012 at 9:10 pm

    Must be a lot of money in that fertilizer. Don’t you suppose we are paying for that expensive fertilizer when we buy the food it is used on?

  2. Avatar

    Something Wrong With This Picture Reply Report comment

    February 20, 2012 at 6:37 pm

    1 Billion dollars for 165 jobs comes to over 6 million dollars per job.


    • Avatar

      Sherlock Reply Report comment

      February 20, 2012 at 11:26 pm

      It’s also about one half of the funds set aside for assistance. In one project? To an (Arab?????) Egyption company. What are they thinking?

      The company doesn’t have to put up even 10% of the cost. No bank would offer this deal at even 6% interest to a company.

      There are plenty of small to medium sized businesses in Iowa that are in need of funding, in growth phase, and have had to pay usery levels of interest as compared to the banksters borrowing rates from the FED.

      Is everyone as tramatized about Jobs, Jobs, Jobs as it seems to me. Jobs are an excuse for a low income housing project with TIF assistance, and discounted taxes when it does come time to pay taxes. Two jobs created.

      6 million per job? At that rate Iowa may be in the running to beat the Federal job creation programs.

      What a bunch of !#@&!%* idiots.

  3. Avatar

    Wolf bloggie dog Reply Report comment

    February 20, 2012 at 5:31 pm

    ahhhhhh, what way did they go