Economic Development Board approves awards to support almost $227 million in capital investments in Iowa
The Iowa Economic Development Authority (IEDA) board today awarded direct financial assistance and tax benefits to eight companies for job creation and expansion projects. Today’s awards will assist in the creation of 84 jobs, retain 171 jobs and will result in almost $227 million in new capital investment for the state.
Ag Processing Inc. (AGP) is a cooperative engaged in the procurement, processing, marketing and transportation of grains and agricultural products. The company’s primary business is soybean processing. It is the largest soybean processor in Iowa with six plants located in Eagle Grove, Emmetsburg, Manning, Mason City, Sergeant Bluff, and Sheldon with additional plants located in Minnesota, Missouri, and Nebraska. AGP is proposing a $89.1 million project that includes the construction of a 30 standard tank car per day vegetable oil refinery, built on the existing 85 acre tract of land that is currently home to the company’s soybean processing and biodiesel plants. The refinery project includes the addition of crude oil filtration, degumming, refining, bleaching and deodorizing processes. The project is expected to create 20 jobs, of which 19 are incented at a qualifying wage of $20.66 per hour. The board awarded AGP direct financial assistance of $152,000 as well as tax credits via the High Quality Jobs Program (HQJP).
Apache Inc., a 100 percent employee-owned company, was founded in 1963 in Cedar Rapids as Apache Hose & Belting Company and has since grown to six locations across the United States. The company sells a wide range of custom fabricated industrial conveyor belts, hose, and molded rubber products, and consumer packaged products for industries including agriculture, recycling, mining, hydro, food, chemical and many others. In order to continue to grow in the future, Apache is proposing a $7.3 million project to expand production space, adding 90,000 s.f. to its existing facility. The project was awarded a $75,000 forgivable loan and tax credits through HQJP and is expected to create 15 jobs, eight of which are incented at a qualifying wage of $23.45 per hour.
Boehringer Ingelheim Vetmedica, Inc. (BIVI) is a subsidiary of Boehringer Ingelheim Corporation and a member of the Boehringer Ingelheim group of companies. BIVI is a world leader in developing, manufacturing and marketing an extensive line of quality biological and pharmaceutical products for its core segments: cattle, swine, horses and pets. BIVI acts as a center of competence in biological research, development and manufacturing for worldwide animal health business.
BIVI is also pursuing a project to expand its research capacity in Ames. Following BIVI’s acquisition of NOBL Laboratories Ames operation in 1999, its research efforts in Ames grew with successful collaboration from Iowa State University (ISU). This Expansion project includes a new build-to-suit 52,088 square foot building facility on the ISU Research Park. BIVI is also planning a capital investment of $2.8 million. The larger facility will allow the company to expand efforts in all five target species (swine, equine, cattle, companion animals and poultry), continue to research other diseases with an unmet therapeutic need for larger livestock and enhance privacy and security. The project will create one job with a qualified wage of $23.21 per hour and was approved for tax credits through HQJP.
Employers Mutual Casualty Company (EMC) is a property and casualty insurance company based in Des Moines and doing business in over 40 states through multiple branch offices. EMC ranks among the top 60 insurance organizations in the U.S. EMC writes the insurance for many communities and a majority of the school districts throughout Iowa, and it sells its products solely through independent insurance agencies. The proposed $22.7 million project includes new construction downtown for collaborative meeting space, an employee fitness center, operational support and improved IT areas that today’s high-skilled workers demand. The board awarded EMC tax credits through the HQJP to retain 103 incented jobs at a qualifying wage of $25.52 per hour.
Iowa Brewing Company, LLC is a newly formed company that is proposing a $2.1 million project to construct and operate a production craft brewery in downtown Cedar Rapids, including brewing, fermenting, aging, packaging, and marketing various styles of craft beer and other beverages. Estimates indicate that the present site can support as much as 50,000 bbl of annual production. The board awarded the project tax credits through the HQJP to create 16 jobs, nine of which are incented at a qualifying wage of $19.54 per hour.
Lesaffre Yeast Corporation (LYC) is part of the global Lesaffre Group based in France. Lesaffre is a global provider of yeast, yeast extracts and other fermentation-related products. The company designs, manufactures and markets solutions that promote baking, ingredients and a range of nutrition and health, feed, biofuel and other industries. LYC is proposing a $5 million capital investment to construct a facility to manufacture various products and applications. The project is expected to create four jobs at a qualifying wage of $23.45 and was awarded tax credits via the HQJP.
Simonsen Iron Works provides contract manufacturing for OEM’s and has its own product line of skid steer and 3-point attachments, Ground Effect, and is developing other product lines in other industries. This proposed $3 million project includes the acquisition of a 120,000 square foot manufacturing facility in Spencer and is expected to create 28 jobs, seven of which are incented at a qualifying wage of $18.49, and retain six jobs. The board awarded the project a $300,000 loan through the HQJP.