The Iowa Economic Development Authority (IEDA) board today awarded direct financial assistance and tax benefits to a variety of companies with the promise of more jobs and expanded facilities. IEDA spokesperson Tina Hoffman, says one award went to the 125-year-old Braunger Foods company in Sioux City.
“Braunger foods is going to relocate to a larger facility. They are a food distributor, they service restaurants, schools, health care facilities, things like that,” She says the company is putting a lot of money into the new facility. “They are going to have a four-point-three million dollar capital investment for this project that will retain 18 jobs, Hoffman says. “They are receiving benefits through the Targeted Jobs Withholding Tax Credit program — which is a program especially for communities on our borders which have to compete against different tax climates in other states.”
Cambridge Technologies, which is part of the Prairie Holdings Group of companies located in Worthington, Minnesota won state assistance for a western Iowa facility the make animal health care products.
“They are going to establish a new production facility up in Sioux Center. They received benefits through the High Quality Jobs Program today, both direct financial assistance as well as tax benefits. And this project is going to create 39 jobs,” Hoffman says. The company received $67,500 tax benefits for the company’s promise of an $820,000 capital investment.
“This is a really great project that’s going to create a fair number of jobs in the biosciences arena, so exactly the kinds of jobs that we are looking for,” according to Hoffman. Nine of the jobs in Sioux Center will have a wage of $20.77 an hour.
Also in western Iowa, Wells Enterprises in Le Mars was awarded tax benefits to upgrade to its South Ice Cream Plant. “They’re going to make a 19-point-three million dollar capital investment, install a new multi-product production line, add some additional equipment. And this project will create 19 additional new jobs up in Le Mars,” Hoffman says. Eleven of the 19 new jobs will have a wage of nearly $21 an hour.
GoDaddy.com won tax benefits for its eastern Iowa operation in Hiawatha. “They are one of the world’s largest website hosting companies, or owners of domains if you will. They have 600 current employees over in Hiawatha, which is mainly one of their customer care centers,” Hoffman explains. “They are going to expand that operation — a six million dollar expansion — create a 131 million new jobs.”
The privately-owned parent company of the Kum & Go convenience store chain won state tax benefits to move its headquarters. “They are now over 150 million dollars in capital investment for the relocation of their company headquarters building to a site downtown in Gateway West. And they were awarded tax benefits through the high-quality jobs program to create 90 new jobs and retain 11 jobs,” Hoffman says.
The 3M company won state incentives to expand its facility in Knoxville. “Three-M is going to be doing an expansion project that is going to have a capital investment of $25.8 million. So the board awarded them some direct financial assistance as well as tax benefits,” Hoffman says.
The company says it is planning to install trade secret manufacturing and technology at its Knoxville location to produce and convert tapes and adhesives. It says these plant and equipment investments are designed to meet global demand for new products and provide adequate manufacturing capacity for existing products.