IA: EconDev Board Awards Support for Two New Rural Co.s & Jobs
23 Oct, 2018
The Iowa Economic Development Authority (IEDA) Board awarded tax benefits to two companies for job creation and expansion projects. These awards will assist in the creation of more than 200 jobs and will result in $31.1 million in new capital investment for the rural communities of Eldridge and Orange City. The board also recommended grant funding for eight innovative small businesses in Iowa and approved redevelopment tax credits to support remediation of abandoned or outdated sites in 25 communities, about half of which are in rural parts of the state.
Eagle Engineering, under new ownership, to expand in Eldridge
Eagle Engineering, founded 1989, designs and manufactures custom weld stations, assembly fixtures and automated test stands for the aerospace, agriculture, high-speed rail, renewable energy and oil and gas industries. Eagle recently was purchased by Eckhart, a similar company headquartered in Michigan, with plans to expand the operations in Eldridge. Eagle plans to add approximately 29,000 square feet to its existing facility, making room for technology that will increase scale, facilitate equipment testing and create a unique line of product offerings. The board awarded Eagle Engineering tax benefits for this project from the High Quality Jobs (HQJ) program. This $7 million capital investment is expected to create 50 total jobs, of which 30 are incented at a qualifying wage of at least $19.30 per hour.
Orange City’s Diamond Vogel to create 154 jobs
Diamond Vogel is known for its paint for homes and offices, but it also provides industrial coatings to manufacturers, wood finishes to professionals and consumers, and traffic coatings to state and local governments. The company, founded in 1926 in Northwest Iowa, sells under brands such as Diamond Vogel, Old Masters and Van Sickle. Diamond Vogel plans to construct a new research development center and maintenance facility, as well as renovate the powder coating facility at its existing Orange City campus. The board awarded this $24 million capital investment tax benefits from HQJ. The project is expected to create 154 jobs, of which 69 are incensed at a qualifying wage of $20.48 per hour.
Eight small businesses recommended for grants
The Small Business Innovation Research/Small Business Technology Transfer (SBIR/STTR) program is designed to support successful Iowa-based grant applications through the Small Business Administration. One component of the program provides up to $50,000 in financial assistance to companies – $25,000 upon receipt of an SBIR or STTR award and $25,000 upon submission of a phase II proposal. IEDA financial assistance is released if the recipient receives an SBIR/STTR award and, as a result, every $1 in State of Iowa funding leverages $14 in federal funding. Today, eight businesses were recommended for SBIR/STTR awards: Direct Spinal Therapeutics, Inc.; Hurd Health Group, LLC; Integrated Behavioral Health Services PC; Paragon Learning Research Group, LLC; iowaMotion, Inc.; StarrMatica Learning Systems; SwineTech, Inc.; and Viewpoint Molecular Targeting, LLC.
Twenty-Five Brownfield and Grayfield Sites Awarded Funding Through Redevelopment Tax Credit Program
The Redevelopment Tax Credit Program provides financial assistance for the acquisition and remediation of eligible Brownfield and Grayfield sites, such as those that are abandoned, outdated or an environmental risk. Out of the 49 applications received, 25 awards were recommended to, and approved by, the IEDA Board today. The 25 projects are spread across the state, and about half are located in rural Iowa. These projects can help revitalize the towns where they are located by inspiring further development, generating revenue and attracting new visitors and residents.
An Advisory Council comprised of representatives from IEDA, the Iowa Department of Natural Resources, Iowa League of Cities, Professional Developers of Iowa and the IEDA Board reviews the applications. Tax credits are available for up to 24 percent of a qualifying investment in a Brownfield or up to 30 percent if the project meets the requirements of a green development, or 12 percent of a qualifying investment in a Grayfield or up to 15 percent if the project meets the requirements of a green development. The tax credit allocation for FY 2019 is capped at $10 million, with a maximum of $1 million per project.
Find the complete list of awarded Brownfield and Grayfield projects here.