IA: Economic Development Board to Support ~$193M in Investment, 329 Jobs
25 Jun, 2018
The Iowa Economic Development Authority (IEDA) board awarded direct financial assistance and tax benefits to five companies for job creation and expansion projects. These awards will assist in the creation of 277 jobs, retention of 52 jobs and will result in nearly $193 million in new capital investment for the state.
The board approved assistance for planned or proposed projects located in Corydon, Council Bluffs, Nevada and Sioux City.
Manufacturer receives assistance for Wayne County expansion project
East Penn Manufacturing Co., headquartered in Lyon Station, Pennsylvania, has been producing high quality batteries and battery accessories for the agricultural, automotive, commercial, marine, industrial, stationary and specialty markets since 1946. The company plans to expand its Iowa presence, significantly adding to its existing facility footprint in Wayne County to increase battery production. The board awarded the company $1.4 million in direct financial assistance, as well as tax benefits for this project from the High Quality Jobs (HQJ) program. The $171 million capital investment is expected to create 204 jobs in this rural Iowa county, all of which pay a qualifying wage of at least $15.14 per hour.
Interstate Mechanical Corp plans to relocate
Interstate Mechanical Corp and Interstate Metal Specialists provide services in specialty welding, custom metal fabrication, plumbing/HVAC service and architectural metal fabrication. The companies plan to relocate two manufacturing sites into a single location and expand production in Sioux City, Iowa. The board awarded Interstate Mechanical Corp tax benefits from the Targeted Jobs Withholding Tax Credit program for this $3.3 million capital investment. The project is expected to retain 52 jobs incented at a qualifying wage of at least $21.40 per hour.
Metal fabrication company set to expand existing operations
Mid-States Material Handling & Fabrication is a metal fabrication company in the agri-business market. The company manufactures grain handling equipment ranging from grain drag conveyors, structural I-Beam and four-legged metal towers. The company’s proposed project in Nevada, Iowa, includes the construction of a new 34,000 square foot manufacturing center that will allow for expanded product lines. This project represents a $4.2 million capital investment and is expected to create 13 jobs, of which one is incented at $24.20 per hour. The company was awarded tax benefits under the HQJ program.
Technology consulting firm to open new facility in Council Bluffs
Pillar Technology provides software solutions and technology consultation to leading businesses. The organization is made up of developers, engineers, designers, digital experience architects and thought leaders who understand the business value of complex initiatives and solve complicated problems through exceptional digital solutions. Established in 1996, Pillar currently has four working spaces in the U.S. — each one called The Forge (an innovative and collaborative work environment). This project will include opening a new Forge location in the new River’s Edge development in Council Bluffs, Iowa. This $1.3 million capital investment was awarded tax benefits from the Targeted Jobs Withholding Tax Credit program. The project is expected to create at least 30 jobs, with a minimum qualifying wage of $18.18 per hour.
Council Bluffs distributor receives assistance to expand
Warren Distribution started its Council Bluffs, Iowa, operations in 1971 with an antifreeze packaging business. Currently, the company blends and packages lubricating oils and automotive chemicals and makes plastic bottles at this location. Warren Distribution plans to construct a new 211,000 square foot warehouse and distribution facility in Council Bluffs. The project represents a $12.8 million capital investment and is expected to create 30 jobs, of which 13 are incented at a qualifying wage of $18.18 per hour. The company was awarded tax benefits from the Targeted Jobs Withholding Tax Credit program.
Rules put forward for Registered Apprenticeship Development Fund
The IEDA Board also took action on rules for the new Registered Apprenticeship Development Fund established in the Future Ready Iowa Act. Governor Reynolds called on the legislature to pass the Future Ready Iowa Act in her Condition of the State address in January 2018. The bill passed both the Iowa House and Iowa Senate with unanimous, bipartisan support. Governor Reynolds signed the bill into law on April 3 at the Future Ready Iowa Summit. Moving the rules forward supports an aggressive goal to open the funding application period for this new program in January 2019.
Download a spreadsheet of the awards: