The Iowa Economic Development Authority (IEDA) Board Friday awarded tax benefits to three companies for job creation and expansion projects. Spokesperson Jacque Matsen says a company formed in the Netherlands in 1948 plans to expand its operations in Pella.
“Lely is a really interesting company, they develop robotics and data analytics for the dairy industry,” according the Matsen. The board awarded them $15.7 million in capital investment tax benefits from the High Quality Jobs (HQJ) program. “They have a small operation in Pella already, but what they are looking to do is build a brand new 150,000 square foot building in Pella that will serve as their North American headquarters,” she says. The company will move products currently manufactured in Europe to production in Pella and that is expected to create 15 jobs, at a wage of nearly 22 dollars an hour.
The Kreg Company received tax credits for another expansion. “Kreg is a longtime Iowa company formed almost 30 years ago…in Huxley..they are looking to expand with a 250,000 square foot facility in Ankeny,” Matsen says. The company is know for its woodworking tools and specifically for its Kreg Jig.
She says they are looking to create 20 jobs that would pay more than 30 dollars an hour. A Burnsville, Minnesota tool manufacturer also won tax incentives.
Northern Tool and Equipment plans to build a large distribution center in Ankeny. Matsen says it will be 600,000 square feet and cost $26 million to build. The company makes log splitters, generators, pressure washers and air compressors. The facility will eventually employ 183 people.
Matsen says the tax credits vary depending on the company. “What the credits mean is that the companies pay the taxes — and then they get refunded the taxes. That might be the taxes on the building materials that they get refunded or taxes on the sales of their products that they get refunded,” according to Matsen. She says the businesses are monitored to see that they spend the amount of money they promised on their facilities and also create the number of promised jobs.