Press Release Archive
Thursday, July 19, 2007
New Economic Development Actions Could Create and Retain Over 2,700 Iowa Jobs
(Des Moines, Iowa) – Major expansions of landmark Iowa companies Target Corp., Principal Life Insurance, Cargill and Red Star yeast—plus new manufacturing in Newton and major biofuels growth—highlighted a crowded development agenda today. The Economic Development Board and Iowa Department of Economic Development (IDED) made development awards to 14 projects that plan to create and retain more than 2,700 jobs and make capital investments of $814 million.
"When I became Governor, I laid out a vision of creating the economy of the future in this state, bringing new jobs and greater opportunities to communities large and small,” said Governor Chet Culver. “And today I’m happy to say this vision takes one more step toward becoming reality. These 2700 jobs, and the economic impact they create, will help secure our future and create new opportunities that will keep your kids and my kids in Iowa, where they belong.”
“This month, all of the state’s targeted industries will take a big step forward,” said IDED Director Michael Tramontina. “Iowa is a great place for business. More and more companies are recognizing Iowa’s advantages in skilled workforce and quality of life and are choosing to locate here.”
New manufacturing jobs sought in Newton & Kellogg
TPI Composites was awarded $2 million from the Economic Development Set-Aside (EDSA) and Phyisical Infrastructure Assistance (PIAP) programs and tax benefits from High Quality Job Creation (HQJC) program to build a manufacturing plant in Newton. Operations at the new facility are expected to provide 723 jobs. Wages for production jobs would range from $12.25 to $13.40 per hour, plus benefits. The company would bring a patented technology to Iowa for molding lighter, stronger composites. Part of LCSI Holding, Inc., TPI Composites has selected Newton among the sites being considered for the new operation.
Smith Jones Inc., doing business as Midwest Manufacturing Co., plans to expand distribution operations in the Kellogg from 4,700 to 133,000 sq. ft. by remodeling three existing buildings. The nearly $700,000 project creates 20 jobs, 13 of the jobs paying an average wage of $16.16 per hour. The Economic Development Board awarded $100,000 from the Community Economic Betterment Account (CEBA) for the expansion. Supplying engine manufacturing companies, Midwest Manufacturing is the primary source in North America for the ring gears used to start engines.
Cedar Falls in line for new Target and Martin Bros. distribution
Target Corporation, which operates one of state’s largest distribution centers in Cedar Falls, will construct another 400,000 sq. ft. specialized center nearby for distribution of fresh produce and frozen and refrigerated foods to Midwest stores. Target’s $86 million project was awarded tax benefits from the High Quality Job Creation (HQJC) program to create 51 jobs, 37 of the jobs paying an average wage of $23.62 per hour, plus benefits. Construction will start late this year and be completed by late 2009. The High Quality Job Creation (HQJC) program provides qualifying businesses with tax benefits to offset the costs incurred to locate, expand, or modernize an Iowa facility. Tax benefits may include refunds of sales taxes on construction and racks, shelving, and conveyor equipment for distribution centers as well as an investment tax credit.
Family-owned Martin Brothers Distributing Company Inc. was awarded tax benefits from the High Quality Job Creation (HQJC) program for a more than $6 million expansion in Cedar Falls. The food service distributor will add 50,000 sq. ft. to the existing warehouse for dry, frozen and refrigerated storage. The project creates 18 jobs, 12 of the jobs paying an average wage of $20.34 per hour. Martin Brothers supplies food services to healthcare facilities, schools, colleges, restaurants and convenience stores in Iowa and surrounding states.
Parking ramp, child care part of The Principal jobs growth
The Principal Financial Group was awarded tax benefits for a more than $100 million expansion creating jobs in a downtown Des Moines Enterprise Zone. With plans to increase employment by 1,500 people in Des Moines over the next five years, the company will build a new 1,800 vehicle parking ramp and a child care center for 180 children at the northwest corner of 7th Street and Park Avenue. Additional employees will be housed in the company’s existing complex. Wages of 840 of the new jobs will pay an average wage of $23.45 per hour. Groundbreaking for the childcare center is planned to take place August 3rd, with construction expected to be complete by the middle of next year. The parking ramp is expected to be complete in 2009. Headquartered in Des Moines, the Principal Financial Group is one of the largest employers in Iowa.
Major investment at Iowa Bioprocessing Center
Cargill Inc. was awarded tax benefits from the High Quality Job Creation (HQJC) program for a major expansion of corn wet-milling operations in Eddyville. The expansion creates 31 jobs paying an average wage of $23.37 per hour. Increased capacity will support additional ethanol production of 110 million gallons per year as well as new production of animal feeds, corn oil, gluten meal and other products. Cargill’s wet-milling operation in Eddyville anchors the multi-billion dollar Iowa Bioprocessing Center, a collection of international businesses adding value to agriculture.
Cedar Rapids seeks yeast expansions
Red Star Yeast Company and Bio Springer North America Corporation are planning a joint $75 million expansion in Cedar Rapids. Red Star Yeast Company will expand to produce more yeast and a new Bio Springer facility will make yeast extracts and similar products. Scheduled for completion in 2009-2010, the projects will create 35 jobs paying an average wage of approximately $23 per hour. The Economic Development Board awarded the projects $192,500 from the Community Economic Betterment Account (CEBA) and tax benefits from the High Quality Job Creation (HQJC) program. Bio Springer is a subsidiary of the Lesaffre Group of France.
More than doubling Sioux Center ethanol
Siouxland Energy and Livestock Corporation, which operates the oldest farmer-owned ethanol plant in Iowa , is planning a $42 million expansion to more than double production to 60 million gallons per year. The project was awarded tax benefits from the High Quality Job Creation (HQJC) program to create 11 jobs paying an average wage of $16.70 per hour. Now under construction, the expansion in Sioux Center is expected to be online late this year.
Tax benefits for Belmond ethanol jobs
Newly formed Belmond Renewable Energy will construct an ethanol plant opening in the spring of 2009 that will have a production capacity of 100 million gallons per year. The plant was awarded tax benefits from the High Quality Job Creation (HQJC) program to create 43 jobs paying an average wage of $18.18 per year. Midwest Grain Processors will be the significant owner of the $210 million plant.
Assisting Ruthven success
A growing manufacturing operation in Ruthven was awarded $410,000 from the Economic Development Set-Aside (EDSA) program and Enterprise Zone tax benefits to expand into a new building and automate its process. Farmers Corrugated Solutions will create 116 jobs paying an average wage of $12.47 per hour. In 2006, Farmers Corrugated Solutions bought a company in Arkansas that made pallets from cardboard rather than wood and moved production to Ruthven. Corrugated shipping pallets are lighter in weight, equally strong, easier to configure and recycle than wood pallets.
Award to expand Osceola’s Mac-Lander
The Economic Development Board awarded $320,000 from the Community Economic Betterment Account (CEBA) to Salford Farm Machinery to acquire and expand Mac-Lander, Inc., a trailer manufacturer in Osceola. With the addition of new products to the plant’s output, Salford will be creating 41 jobs and retaining 15 at an average wage of $13.11 per hour. The Canadian company plans to continue existing trailer production as well as bringing new agricultural tillage products to Osceola from Canadian plants. The $2.5 million project was also awarded tax benefits to invest in an Enterprise Zone.
New era for Janesville company
W.S. Darley Company plans to purchase and expand Ohler Machinery Company, a manufacturer of pumps in Janesville, Iowa. The Economic Development Board awarded the project $150,000 from the Community Economic Betterment Account (CEBA). W. S. Darley will create 14 jobs and retain 10 jobs paying an average wage of $17.02 per hour. Approximately 5,000 to 10,000 sq. ft. and new machinery and equipment will be added to the Janesville facility as part of the $2.6 million expansion. Headquartered in Melrose Park, Illinois, W.S. Darley manufactures fire fighting pumps, compressed air foam systems and other fire fighting apparatus in Wisconsin and Oregon.
Food verification, online training awards
FoodChain Global Advisors, a sister company of Genetic ID, was awarded $250,000 from the Value-Added Agricultural Products and Processes Financial Assistance Program (VAAPFAP) to expand in Fairfield. The more than $1 million project creates 50 jobs and retains 2 jobs paying an average wage of $23.98 per hour. FoodChain is working with the organic and natural foods industry to ensure that products meet non-GMO standards.
Phasient Learning Technologies of Ames, a leading provider of Internet-powered training solutions for major national companies, was awarded $100,000 from the Community Economic Betterment Account (CEBA) to continue next generation product development. Further development activities will create 26 jobs, 24 of the jobs paying an average wage of $23.84 per hour.
Since the original Grow Iowa Values Fund started on July 1, 2003, IDED has assisted 462 Iowa projects that are expected to create 35,874 Iowa jobs. Total capital investment as a result of the fund is projected to be $11.65 billion.