The Iowa Economic Development Board approved an application from Newton today for state funding to help Marsh Incorporated with a $5-million expansion. The D.E.D. approved $450,000 in direct financial assistance in return for the promise that the insurance broker would create at least 150 new jobs.
The executive director of the Newton Development Corporation, Frank Liebl, says the D.E.D. approval is another step to making the project will happen. Liebl says Marsh still has to give the project the final go, but he says they have indicated they are convinced they want to expand in central Iowa. He says it would be a good thing for Newton and create a lot of jobs over a three-year period.
Newton’s economic development director, Bryan Friedman, is optimistic Marsh will proceed with its expansion plans. He says the dealings between the state and Marsh have been very good and he says the company is looking for long term options for expansion, and they are “very optimistic about the prospects for this project.”
The city of Newton would have to provide up to $90,000 worth of tax abatements or tax increment financing rebates over five years for the project. Marsh currently has about 50 employees at its facility in the Newton industrial park.
The D.E.D. also approved these other awards today:
The board awarded $5-million in direct financial assistance to DuPont Danisco Cellulosic Ethanol for a proposed cellulosic ethanol biorefinery in Nevada. The award would support the creation of 65 jobs and the retention of two jobs. Initially, the facility is expected to produce 25 to 50 million gallons of cellulosic ethanol each year.
The board awarded one million dollars in direct financial assistance to food and feed ingredient manufacturer Kemin Industries for an expansion of its Des Moines operations. The company plans a 29-point-six million dollar capital investment that includes a new worldwide headquarters office, six manufacturing buildings, research and development buildings, and greenhouses. A total of 98 jobs are expected to be created, 58 of which are supported by state incentives.
The board awarded $500,000 in direct financial assistance to Genencor to expand its Cedar Rapids operations. The company plans a $37.9- million capital investment that includes two building additions, adding and updating machinery, equipment and infrastructure to increase production capacity for new product demand. The project is expected to create 13 new jobs and support 25 current positions. The board also approved enterprise zone tax incentives for the project.
The board approved a $250,000 royalty agreement for software developer Fastek International of Cedar Rapids for its Electrical Power Management System. The $100,000 capital investment will support the creation of 11 new jobs. The company has identified a business opportunity in the U.S. military and security forces’ need for an “on-board universal power source” on government vehicles. Those power sources are used to power aircraft, helicopters and data and command centers in the field.
The board approved $150,000 in direct financial assistance to General Environmental Companies to open a facility in Oskaloosa that processes cracked eggshells. The award will support the creation of 11 new jobs. Plans call for the company to lease a building and obtain a single-pass cyclone turbine technology system to process the eggshells for use in cosmetic creams and vitamin products.
Fifty-thousand dollars in direct financial assistance was approved for Maharishi Ayurveda Products International to relocate its Colorado warehouse, distribution and management operations to Fairfield. A total of 19 jobs will be created or retained, nine of which will be supported by this award.
PathoVacs, Incorporated, a startup technology firm located in Ames, was approved for $75,000 of support from the Iowa Demonstration Fund. PathoVacs is based on a vaccine development technology that reduces the cost of the first major component of vaccine development.
Randy Van, KCOB, Newton in Newton contributed to this story.