BOARD ACTION: Board Approves Awards to Support Capital Investment, Primarily in Rural Iowa
For more information contact:
Jacque Matsen, Iowa Economic Development Authority
Economic Development Board approves awards to support over $80 million in capital investment, primarily in rural Iowa communities
May 18, 2018 (DES MOINES, IA) – Today, the Iowa Economic Development Authority (IEDA) Board awarded direct financial assistance and tax benefits to eight companies for job creation and expansion projects, six of which will benefit rural Iowa communities. These awards will assist in the creation of 299 jobs and will result in over $80 million in new capital investment for the state. The board also approved innovation funding for three startups.
The board approved assistance for planned or proposed projects located in Albia, Cedar Rapids, Cresco, Denison, Des Moines, Fort Madison, North Liberty, Perry, Urbandale, Walcott and Waukee.
Atlantic Bottling Company receives assistance for Walcott expansion project
Atlantic Botting Company is a family owned and operated business that bottles and distributes Coca-Cola Products throughout the Midwest. This project plans to relocate the company’s Rock Island, Illinois, operations to a newly constructed building in Walcott. The board awarded Atlantic Bottling Company tax benefits for this project from the High Quality Jobs (HQJ) program. This $235,000 capital investment is expected to create 143 jobs, of which 106 are incented at a qualifying wage of $18.30 per hour.
Dry ice manufacturer set to construct new facility in Crawford County
Continental Carbonic Products, Inc. specializes in the manufacture and distribution of dry ice. Its proposed project outside of Denison includes the construction of a new 35,000 square foot manufacturing facility. This project represents a $19 million capital investment and is expected to create 40 jobs incented at a qualifying hourly wage of $16.54. The company was awarded $125,000 in direct financial assistance as well as tax benefits via HQJ.
Donaldson to expand Cresco facility
Donaldson Company, Inc. is a global, leading manufacturer of filters and filtration systems. The company’s Cresco location produces engine air filters and intake systems that are then shipped worldwide. The project will include remodeling the current facility to install two filter media production lines. This $4.7 million capital investment was awarded tax benefits from HQJ. The project is expected to create six jobs incented at a qualifying wage of $19.93 per hour.
RELCO Locomotives receives assistance to construct new facility
RELCO Locomotives, Inc. is an expert in the locomotive leasing, rebuilding and repairing industry. The company plans to construct a new 8,400 square foot paint shop at its existing Albia location, allowing RELCO to expand production and keep up with current demand. This project represents a $1.4 million capital investment and is expected to create 12 jobs, of which six are incented at a qualifying wage of $16.23 per hour. The company was awarded tax benefits via the HQJ program.
Fort Madison manufacturer receives assistance for expansion project
Scott’s Miracle-Gro Company (SMG) manufactures, markets and sells branded products for lawn and garden care and indoor and hydroponic gardening. SMG plans to add a new 4,400 square foot building to relocate and expand existing Fort Madison operations. The board awarded SMG $91,612 in direct financial assistance and tax benefits from HQJ for this $2.6 million capital investment. The project is expected to create 41 jobs, of which 18 are incented at a qualifying hourly wage of $16.92.
Source Allies, Inc. receives assistance to construct new facility
Source Allies, Inc. is an information technology consultancy headquartered in Urbandale creating software products with customers in the energy, precision agriculture, media, healthcare and insurance markets. The company plans to expand its current workspace to allow for additional growth. This project represents a $3.8 million capital investment and is expected to create 36 jobs at or above a qualifying wage of $29.12 per hour. The company was awarded $144,000 in direct financial assistance, as well as tax benefits via the HQJ program.
Tyson Fresh Meats receives assistance for Perry expansion project
Tyson Fresh Meats, Inc., a wholly owned subsidiary of Tyson Foods, Inc., is a supplier of premium beef and pork. The company’s Perry facility plans to construct a new chilling system to improve product quality and efficiencies. By modernizing current processes, additional training will be required for existing employees. The board awarded tax benefits from HQJ for this $43.7 million capital investment.
Van Meter Inc. receives assistance to expand at existing facility
Van Meter Inc. distributes automation, electrical, data communication, lighting and power transmission products. The company serves the agriculture, commercial, contractor, education, food and beverage, healthcare and manufacturing industries. Van Meter Inc. plans to expand its current facility in Cedar Rapids to add shipping and receiving docks, as well as expand existing warehouse space. This project represents a $4.7 million capital investment and is expected to create 21 jobs, of which three are incented at a qualifying wage of $24.91 per hour. The company was awarded tax benefits via the HQJ program.
Awards made to three startups
The Demonstration Fund provides financial and technical assistance to encourage high-technology prototype and concept development activities that have a clear potential to lead to commercially viable products or services within a reasonable period.
The fund provides financial assistance to encourage commercialization activities by small and medium-sized Iowa companies in the advanced manufacturing, biosciences and information technology industries. The primary purpose of the fund is to help businesses with a high-growth potential reach a position where they can attract later-stage, private-sector funding.
The Proof of Commercial Relevance (POCR) Fund provides financial assistance to innovative businesses that are pursuing proof of commercial relevance and marketability of a technology. The fund is designed to assist businesses with new technologies that have completed the proof of concept stage and are ready to be subjected to the rigors of the proof of commercial relevance stage, which includes defining the market for the product and perfecting the product to meet market needs.
Award recommendations for these funds are made by the Technology Commercialization Committee (TCC) to the IEDA Board for approval.
North Liberty-based TLA MD, LLC has developed a mechanical device called the SNAP-HAT. Scalp lacerations over hair-bearing areas have traditionally been closed with staples. An alternative, cost-effective, faster technique is the Hair Apposition Technique (HAT). The SNAP-HAT, or Safe Non-Injectable Advance Procedure for the Hair Apposition Technique, simplifies the HAT procedure, allowing it to be easily adopted and performed by a wide range of healthcare providers. The company was awarded a $25,000 POCR loan primarily for product refinement and intellectual property (IP) development and evaluation.
Tractor Zoom, based in Waukee, has developed a digital advertising platform for heavy equipment auctions. The platform utilizes software to streamline the auction advertising process to directly place heavy equipment auctions in the hands of interested buyers. The company was awarded a $100,000 loan from the Demonstration Fund for hiring key personnel, product refinement and market planning and market entry activities.
Located in Des Moines, WindSmart, LLC (WS) supplies a proprietary roofing system for large, commercial low-slope (flat) roof applications. While traditional roofs rely on rock ballast, fasteners and adhesives to resist wind uplift, the WS system transfers such wind uplift pressures through more efficient roof assembly. Additionally, while traditional roofs tend to entrap moisture, WS systems, with the aid of the wind, removes such moisture issues. The company was awarded a $100,000 loan from the Demonstration Fund for project engineering, database development and IP strategy.
Download a spreadsheet of today's awards: