BOARD ACTION: Board Approves Awards to Support Capital Investment
For more information contact:
Ms. Kanan Kappelman, Iowa Economic Development Authority
Economic Development Board approves awards to support over $280 million in capital investment in Iowa and makes final award to Reinvestment District program to Mason City
February 16, 2018 (DES MOINES, IA) – Today, the Iowa Economic Development Authority (IEDA) board awarded direct financial assistance and tax benefits to two companies for job creation and expansion projects. These awards will assist in the creation of 168 jobs, retention of 42 jobs and will result in over $280 million in new capital investment for the state.
The board approved assistance for planned or proposed projects located in Clinton and Norwalk.
ADM receives assistance for Clinton expansion project
Archer-Daniels-Midland (ADM) Company, headquartered in Chicago, IL, processes oilseeds, corn, wheat and other agricultural commodities. ADM’s Corn Processing segment engages in corn wet milling and dry milling activities, converting corn into such products as sweeteners, starches, ethanol and bioproducts. The company’s Clinton location plans to modernize and automate the facility to increase manufacturing capacity and improve efficiencies. The board awarded ADM tax benefits for the project from the High Quality Jobs program (HQJ). This $196 million capital investment is expected to retain 42 jobs incented at a qualifying wage of $15.99 per hour.
Michael Foods set to construct new manufacturing facility in Norwalk
MG Waldbaum Company is a wholly owned subsidiary of Michael Foods, which is headquartered in Minnetonka, MN. MG Waldbaum plans to build a 150,000-square-foot manufacturing and distribution facility in Norwalk to process pre-cooked egg products. The board awarded MG Waldbaum tax benefits from HQJ for this $85 million capital investment. The project is expected to create 168 jobs, of which 17 are incented at a qualifying wage of $24.38 per hour. Michael Foods is a wholly owned subsidiary of Post Holdings, Inc.
Mason City Reinvestment District receives final approval
The board also approved the maximum benefit amount of $9,162,600 for the Mason City Downtown Reinvestment District plan submitted by the City of Mason City. This approval was made with contingencies that include weekly project updates to IEDA staff and receipt of requested documentation by the deadlines outlined by the IEDA board.
This district includes four projects:
- The first project in the district is the proposed Downtown Hotel. Branded as a Marriott, this will be a 4-story, approximately 100-room “select-service” hotel, with guest amenities such as a workout room and “boardroom” meeting spaces.
- The second project is The Music Man Square Conference Center and the Meredith Willson Museum. The project includes renovating the existing Music Man Square into a conference center serving small to medium sized conferences, meetings, and receptions capable of accommodating up to 650 guests. Relocation of the Meredith Willson collection and other artifacts requires construction of a new Meredith Willson Museum.
- The third project is a Skyway over South Delaware Avenue/US 65.
- The fourth project is the Sports/Entertainment/Retail Complex. This project includes two components, the Performing Arts Pavilion and the Multi-Purpose Arena, both involved in the "repurpose" of Southbridge Mall.
The Iowa Reinvestment District Program is designed to assist communities in developing transformative projects that will improve the quality of life, create and enhance unique opportunities and substantially benefit the community, region and state. The program provides for up to $100 million in new state hotel/motel and sales tax revenues to be “reinvested” within approved districts. The full $100 million appropriation has been allocated with the approval of Mason City’s project. Districts cannot exceed 25 acres in size and must be in an Urban Renewal Area.
Iowa Reinvestment District plans must include tax revenues generated by “new retail establishments” and “new lessors.” New retail establishments cannot exceed 50 percent of the total proposed capital investment. At least one of the new proposed projects within the district must reach a total capital investment of $10 million. And, the total amount of new tax revenues to be remitted to the municipality cannot exceed 35 percent of the total cost of all proposed projects in the district plan.
Download a spreadsheet of today's awards: