Economic Development Board Approves Awards to Support Over $237 million in Capital Investments in IowaWritten by Theresa Rose on February 21, 2015
February 20, 2015 (DES MOINES, IA) – The Iowa Economic Development Authority (IEDA) board today awarded direct financial assistance and tax benefits to eight companies for job creation and expansion projects. Today’s awards will assist in the creation of 717 jobs, retention of nine jobs and will result in over $237 million in new capital investment for the state.
“This was quite a busy month for IEDA with eight companies planning projects in Iowa,” said Debi Durham, director of the Iowa Economic Development Authority. “From expansions to companies new to Iowa, it is evident that our efforts to bring investment and jobs to the state are succeeding.”
Projects were assisted in Dubuque, Burlington, Ankeny, Sioux City, Ottumwa, Burlington and Clear Lake.
Accu-Mold plans expansion
Ankeny-based Accu-Mold began operations in 1986 and manufactures small and micro custom-designed precision plastic parts, lead-frame parts and subassemblies used by high-tech customers in diverse industries that include microelectronics, medical and optics applications. The board has approved tax incentives for the company through the High Quality Jobs program (HQJP). The company plans to build an addition to its existing facility as part of its $20 million expansion project. The project is expected to create 200 jobs, of which 36 are incented at a qualifying wage of $25.52 per hour.
Dubuque’s Cottingham & Butler to create 90 jobs
Cottingham & Butler is headquartered in Dubuque and was established in 1887. The company is the 37th largest insurance broker in the U.S. and a recognized leader in offering innovative property and casualty and employee benefit insurance solutions. The board awarded the company $600,000 in direct financial assistance from HQJP for its $1.2 million project that includes leasing office space and tenant improvements that will allow the company to attract employees for the knowledge jobs it creates. The project is expected to create 90 jobs, of which 75 pay at least the qualifying hourly wage of $20.06.
Doran & Ward to increase capacity
Doran & Ward is a printing and packaging company that has been operating in Burlington since 1952. The company creates high impact packaging such as film wraps, rack cards, paper wraps and folding cartons. The industries it serves vary but include health and beauty, pharmaceuticals, hotel and amenity, confectionary and pet foods. In order to meet growing customer demand, the company is planning a $1 million capital investment to increase capacity. Doran & Ward was awarded tax benefits via the Targeted Jobs Withholding Tax Credit (TJWTC) program and is expected to create 13 jobs, of which three are incented at a qualifying wage of $17.54 per hour.
Hirschbach Motor Lines plans $9 million capital investment in Dubuque
Hirschbach Motor Lines is a truckload carrier providing temperature-controlled (reefer) transportation services throughout the continental U.S. The company is proposing the purchase and renovation of the Kretschmer Manufacturing Building in downtown Dubuque. The company was awarded $500,000 in direct financial assistance as well as tax benefits via HQJP for this project that represents a $9 million capital investment. In addition, the project is expected to create 99 jobs, of which 80 are incented at an hourly qualifying wage of $16.72.
Fortune 100 company, McKesson, proceeds with Clear Lake project
McKesson Corporation, a Fortune 100 company in the healthcare sector, was approved for incentives to build a regional forward distribution center to serve its operation in numerous Midwestern states. The project is expected to create 164 jobs at a qualifying wage of $14.79 per hour and result in a capital investment of $65.2 million. The board approved a $170,000 forgivable loan and tax benefits through the HQJP.
Sioux City physical therapy clinic receives tax benefits
Physical Therapy Specialists PC is a private practice physical therapy clinic serving the residents of the tri-state area. The board approved TJWTC tax benefits for the company’s planned expansion in Sioux City. The project represents a $223,000 capital investment and is expected to create six jobs and retain nine jobs, all of which are incented at a qualifying wage of $16.63 per hour.
Plastipak plans expansion at Ottumwa facility
Plastipak was established in 1967 and is currently the third largest blow molder in North America. Plastipak manufactures plastic pre-forms and containers for the beverage, food, consumer cleaning, and industrial and automotive markets. Plastipak is looking to expand its operation in Ottumwa by opening a manufacturing facility to service its customer base. The company received tax benefits via HQJP for this $16.4 million capital investment. The project is expected to create 25 jobs, of which 15 are incented at a qualifying wage of $16.67 per hour.
Burlington metal food container manufacturer receives financial assistance
Silgan is a solutions-based manufacturer of metal food containers, in partnership with many of the country’s most recognizable packaged goods companies. The board awarded the company $550,000 in direct financial assistance and tax benefits via HQJP, as well as tax benefits through the TJWTC program for its plans to construct a new building and install equipment. This project, which represents a $125 million capital investment, is expected to create 120 jobs, of which 110 are incented at a qualifying wage of at least $14.73 per hour.