December 20, 2014

Nine companies land awards from IEDA Board

Companies in nine Iowa communities that are planning expansions have been awarded financial assistance and tax benefits from the state. The Iowa Economic Development Authority board approved the awards that are expected to help create or retain 484 jobs and result in nearly $105 million in new capital investment.

The largest award of roughly $300,000 is going to Polaris Industries. The off-road and all-terrain vehicle maker is planning a $10 million upgrade to its facility in Milford in northwest Iowa. The project is expected to create 150 jobs.

Gott Ice Cream is getting financial help from the state to build a production plant in Tipton, in eastern Iowa, creating 35 jobs.

In Burlington, officials with Baker’s Pride are pursuing an expansion project that’ll create 62 jobs. The state is offering tax benefits toward the $8.5 million project.

The other companies awarded tax benefits or financial aid are located in Cedar Falls, Cedar Rapids, Council Bluffs, Sioux City, Story City, Swisher, and West Des Moines.

From Iowa Economic Development Authority:

Packaging company in Story City receives award for expansion project
American Packaging Corporation, located in Story City, is a packaging company specializing in flexographic printing and adhesive lamination of film. The company also fabricates pouches and bags with a variety of features. In an effort to grow its customer base and increase capacity, the company plans to purchase new equipment. The board awarded American Packaging $62,500 in direct financial assistance as well as tax benefits for this $8.8 million dollar capital investment. The project is expected to create 20 jobs at a qualifying wage of $22.01 per hour.

Expansion of Baker’s Pride planned in Burlington
Baker’s Pride is a co-packer of breads and doughnuts for food companies and distributors whose markets are within 600 miles of Burlington. The company provides either fresh or frozen breads or doughnuts for its customers from its two bakery locations in Burlington. The proposed expansion project would have three phases including upgrading production equipment to expand product offerings and installing new equipment to allow the company to add product lines. The board awarded this $8.5 million capital investment project tax benefits via the Targeted Jobs Withholding Tax Credit (TJWTC) program to create 62 jobs, of which 27 are incented at a qualifying wage of $17.09 per hour.

Micro-distillery expanding production capacity in Swisher
Cedar Ridge Vineyard, located in rural Swisher, is a winery and distillery that produces and sells wine and spirits to customers in Iowa and eight other states. The company is Iowa’s oldest licensed micro-distillery and specializes in sourcing local materials to create unique, craft beverages. To increase production capacity, Cedar Ridge needs to expand its operations with the construction of a new facility on the vineyard/distillery campus. The new facility will allow the company to source and process more local grains which will be turned into finished product for sale outside the state. The IEDA board approved HQJP tax incentives for this $1 million capital investment that is expected to create one job at a qualifying wage of $21.71 per hour.

Global transportation headquarters project slated for Cedar Rapids
CRST International is one of the nation’s largest transportation companies, providing total transportation solutions and comprehensive logistics services to customers all over North America. CRST is considering building its world headquarters in downtown Cedar Rapids. The 11-story building would consist of three levels of parking and an additional eight levels of office space. This $36 million project was awarded Enterprise Zone (EZ) tax incentives to create 30 jobs, 12 of which are incented at a qualifying wage of $17.20 per hour.

Electrical wholesaler to relocate to Council Bluffs
Echo Group, Inc. is a holding company that operates 18 electrical product sales subsidiary locations in Iowa, Nebraska, Minnesota and South Dakota with a total employment of approximately 400. The company is proposing a $11 million capital investment project to relocate the company’s wholesale division to a 13-acre site in Council Bluffs. The project would include warehouse space, a large equipment/product storage area and a training center and administrative support services building in a campus setting. The IEDA board awarded the company tax benefits through both the HQJP and the TJWTC programs to create and retain 117 jobs.

Ice Cream production facility planned for Tipton
Gott Ice Cream was organized as an Iowa LLC in February 2012 and began sales of ice cream in the ultra-premium segment of the ice cream market, primarily in grocery stores in the Iowa City and Cedar Rapids area. The proposed project in Tipton would establish a dedicated production facility in Iowa and increase production capacity which is needed to meet the growing demand for the product. The product is currently being produced in Minnesota. The project was awarded direct assistance of $125,000 plus tax benefits via HQJP. It is expected to result in a capital investment of $820,000 and 35 jobs, of which 24 new jobs and one retained job are incented at a qualifying wage of $18.22 per hour.

Expansion project slated for Cedar Falls John Deere facility
John Deere is a world leader in designing and manufacturing advanced products and services for agriculture, construction, forestry and turf care. This proposed project includes an investment to expand tractor product laboratories at the John Deere Product Engineering Center in Cedar Falls. These investments will address the evolution of tractor size and power, and add test capabilities to help ensure that John Deere products meet customers’ expectations for productivity, reliability, efficiency and comfort. The project is expected to have a capital investment of $27.7 million and would retain 29 jobs at a qualifying wage of $18.84. The board awarded John Deere tax incentives through the HQJP to complete this project in Iowa.

Expanded Polaris operations center supported in Milford
Polaris Industries is a global leader in the power sports industry with manufacturing locations in Iowa, Minnesota, Wisconsin and Monterrey, Mexico. Polaris designs, engineers, manufactures, and markets innovative, high quality off-road vehicles, including all-terrain vehicles (ATVs), side-by-side vehicles, snowmobiles, motorcycles, and on-road electric/hybrid powered vehicles. Due to the demand for Polaris’ products, it is proposing an expansion project at the Milford facility to transform a warehouse into an operation facility that will house assembly, weld and metal paint operations. This $10 million project was awarded direct financial assistance of $300,000 and tax incentives via the HQJP to create 150 jobs, 45 of which are incented at a qualifying wage of $15.21 per hour.

Clinic expansion supported in Sioux City
Tri-State Specialists (TSS) is a multi-disciplinary practice, caring for patients with musculoskeletal, joint and pain problems through state-of-the-art medical treatment, surgery, rehabilitation and diagnostic services. The clinic’s current space on the UnityPoint – St. Luke’s campus will no longer be available, compelling them to look for a new location. The proposed project in Sioux City would allow TSS to relocate its existing operations, expand into physical therapy and add some additional surgeons at the new site. The project has a capital investment of $400,000 and is expected to result in 40 jobs, of which one new job and 17 retained jobs at a qualifying wage of $16.14 will be incented with tax benefits via the TJWTC program.