IA: Board Awards Support Capital Investments, With Cognizant Hiring 1,000
23 May, 2016
The Iowa Economic Development Authority (IEDA) board awarded direct financial assistance and tax benefits to eight companies for job creation and expansion projects. These awards will assist in the creation of 1,275 jobs, retention of 53 jobs and will result in over $43 million in new capital investment for the state. The board also approved innovation funding for six startups.
The board approved assistance for planned or proposed projects located in Cedar Falls, Davenport, Des Moines, Dubuque, Fairfield, Iowa City, Keokuk, Sheldon and Waukee.
Dubuque Manufacturer Rite-Hite to Expand
Rite-Hite is the world leader in the manufacture, sale and service of loading dock equipment, industrial doors, safety barriers, HVLS fans, industrial curtain walls and more - all designed to improve safety, security, productivity, energy savings and environmental control. The company is proposing to expand the existing Rite-Hite Dubuque facility, consolidating its Dubuque area businesses within one facility, improving productivity and operational efficiencies and expanding research and development capabilities to support current and future business growth. The board awarded Rite-Hite direct financial assistance in the amount of $44,000 and tax credits via the High Quality Jobs Program (HQJP) to create 24 new jobs, 11 of which are technical, engineering and professional positions incented at the Dubuque area's qualified wage of $20.53 per hour. The project has a proposed capital investment of $8.9 million.
Cognizant Adding 1,000 jobs in Des Moines
Cognizant Technology Solutions is a leading provider of information technology, consulting and business process services. A member of the NASDAQ-100, the S&P 500, the Forbes Global 2000, and the Fortune 500, Cognizant is ranked among the top performing and fastest growing companies in the world. One of the largest STEM (Science, Technology, Engineering and Mathematics) recruiters in the United States, the company has its global headquarters in Teaneck, New Jersey. As a result of structural changes in business and emerging social, mobile, analytics and cloud technologies, there is continued demand for this business. Cognizant is proposing a two-phase project in Des Moines that includes the expansion of their Business Process Services delivery center. The project would result in a capital investment of $9 million and is expected to create at least 1,014 jobs over the next five years, of which 116 are incented at a qualifying wage of $26.72 per hour. The board awarded the company direct financial assistance in the amount of $812,000 as well as tax benefits via the HQJP.
Washer/Dryer Manufacturer Dexter Laundry Modernizing in Fairfield
Dexter Laundry, Inc. is a manufacturer of commercial washers and dryers and offers a complete line of machines and management systems to laundry owners and managers across the globe. The company is proposing a $6 million modernization of its existing facility in Fairfield. The board awarded Dexter Laundry tax credits via the HQJP to position the company for future growth opportunities.
Software Development Company MetaCommunications Growing in Iowa City
MetaCommunications, Inc. is an enterprise software company that produces industry-leading software solutions sought out by leading creative agencies and global brands, helping these companies innovate faster and more effectively than their competitors. MetaCommunications continues to expand its client base and develop new software solutions to meet the unique work management challenges of creative and marketing teams worldwide. The company’s proposed project would expand operations in Iowa City to accommodate the aggressive hiring plans over the next three years. The board awarded the company $775,000 in direct financial assistance via the HQJP for this $1.6 million capital investment. The project is expected to create 105 new jobs and retain 53, with 97 of the new jobs and 44 of the retained jobs incented at a qualifying wage of $23.24 per hour.
Sheldon Manufacturer Rosenboom Machine and Tool Proposes Expansion
Rosenboom Machine and Tool Inc. was established in 1974 and is a privately owned company with approximately 800 employees with three domestic manufacturing locations in Sheldon, Iowa (Corporate), Bowling Green, Ohio, and Spirit Lake, Iowa. Rosenboom Machine and Tool, Inc. is a leader in high-quality, innovative fluid power solutions. The company designs and produces a variety of products including hydraulic cylinders, actuators, accumulators and high pressure gas springs, supporting heavy-duty applications across several industries including agriculture, construction, military, commercial, transportation and many more. The company was recently awarded a responsibility from the Oshkosh Corporation to supply two key components for the Joint Light Tactical Vehicle (JLTV), the vehicle that will replace many of the HMMWV vehicles that the Army currently has in service. To meet demand, Rosenboom is proposing to add the new production line as well as vertically integrate steel preparation activities through an in-house manufacturing operation. The project is expected to create 54 jobs, 17 of which are incented at a qualifying wage of $19.44 per hour, and result in a capital investment of $16.1 million. The board awarded the company tax benefits via the HQJP to expand in Iowa.
Gaming Software Company Scientific Games Growing in Des Moines and Cedar Falls
Scientific Games Corporation develops technology-based products and services and associated content for the gaming and lottery industries worldwide. The company operates through three segments: Gaming, Lottery and Interactive. The company’s proposed project would include an expansion and upgrade of the existing space in Des Moines and Cedar Falls to accommodate future growth. The Des Moines-based expansion has a capital investment of $300,000 and is expected to create 20 jobs, 17 of which are incented at a qualifying wage of $26.72 per hour. The $400,000 capital investment expansion in Cedar Falls is expected to create 31 jobs, 27 of which are incented at a qualifying wage of $16.79 per hour. The new jobs being created at both facilities are professional, R&D-focused tech jobs, many of which exceed the qualifying wage level. The company was awarded tax benefits via the HQJP to complete its proposed expansions.
Keokuk Attracts Industrial Services Contractor Ziegler Industries
Ziegler Industries, Inc., is a specialty industrial service contractor in the areas of industrial coatings application, scaffold erection and mechanical insulation installation. The company is proposing to relocate its operations from Illinois to Keokuk. Project activities would include building acquisition, site preparation and building remodeling. The project has a capital investment of $840,000 and is expected to create 27 jobs, 19 of which are incented at the qualifying wage of $18.91 per hour (the Lee County average wage). The board awarded Ziegler tax benefits via the Targeted Jobs Withholding Tax Credit program.