On June 17, the Iowa Economic Development Authority (IEDA) Board approved awards for six Iowa companies, which will assist in the creation of 640 jobs and result in nearly $265 million in new capital investment for the state.
According to a news release, these projects are located in Burlington, Cedar Rapids, Davenport, Hampton, Osage and Red Oak. The board also approved a grant through the Entrepreneurial Investment Award program.
Grant awarded to NewBoCo to expand services provided to entrepreneurs
The Entrepreneurial Investment Award (EIA) program provides financial assistance to service providers that offer technical and financial assistance to entrepreneurs and startup companies seeking to create, locate or expand a business in Iowa. The maximum amount that the IEDA Board will award for fiscal year 2022 is $500,000. In addition, the board will award no more than $200,000 to any one service provider per fiscal year. The award is in the form of a grant through a competitive application process.
The New Bohemian Innovation Collaborative (NewBoCo) in Cedar Rapids supports entrepreneurship, innovation and technology education to help Iowans become more resilient and thrive in a changing economy. NewBoCo plans to launch a Community Partners Pilot Program in Mason City and Mount Pleasant to fill gaps in the local entrepreneurial ecosystems. The project will connect each community’s expertise and partnerships with NewBoCo’s programming and resources. NewBoCo was awarded a $100,000 grant from the EIA program to support the project through a program manager, a teaching assistant in each community, student coding courses and diversity tuition awards.
Sub-Zero Group to construct facility in Cedar Rapids
Family-owned Sub-Zero Group Inc. manufactures high-end kitchen appliances under brand names Sub-Zero for refrigeration, Wolf for cooking and Cove for dishwashers. The company plans to construct a 400,000 square foot facility in Cedar Rapids to expand manufacturing capacity. The board awarded the $140.6 million project a $1.135 million forgivable loan and tax benefits through the HQJ program. It is expected to create 192 jobs, of which 127 are incented at a qualifying wage of $24.20 per hour.
Fair Oaks Foods to start production in Davenport
Fair Oaks Foods, a family-owned and minority-owned and operated meat processing business, produces a variety of protein products to supply national grocery stores and restaurants. The company plans to lease a newly constructed facility in Davenport to produce fully cooked bacon. The project represents a capital investment of $44 million and the board awarded tax benefits through the HQJ program. It is expected to create 247 jobs, of which 78 are incented at a qualifying wage of $21.97 per hour.
Western’s Smokehouse & Meat Market to locate operations in Burlington
Western’s Smokehouse & Meat Market co-manufactures meat snacks in Missouri and Illinois. The company plans to lease an existing facility in Burlington to manufacture snack meat sticks, expanding operations to meet demand. The project represents a $19.7 million capital investment and is expected to create 150 jobs, of which 45 are incented at a qualifying wage of $18.94 per hour. The board awarded the project a $200,000 forgivable loan and tax benefits through the High Quality Jobs (HQJ) program.
Centro, Inc. to expand operations in Hampton
Centro, Inc. is a custom rotational molder, making plastic products for manufacturers in the agricultural, construction and lawn and garden industries. The company plans to purchase a building and adjacent lot in Hampton, which will include two rotational molding machines. The project is expected to create 28 jobs, of which 16 are incented at a qualifying wage of $24.18 per hour. It represents a capital investment of $5.3 million and the board awarded tax benefits through the HQJ program.
Valent BioSciences to expand Osage facility
Valent BioSciences LLC has the most extensive portfolio of biorational products in the world, which includes microbial products for agriculture, public health and forestry as well as plant growth regulators for use in high value and row crops. The company plans to expand its existing Osage facility as demand continues to increase. The board awarded the $31.8 million project tax benefits through the HQJ program. It is expected to create 10 jobs at a qualifying wage of $23.71 per hour.
Clarios to increase manufacturing capacity in Red Oak
A leader in advanced energy storage solutions, Clarios, LLC develops, manufactures and distributes a portfolio of evolving battery technologies for vehicles. The company plans to increase its footprint in Red Oak by approximately 22,000 square feet for a new manufacturing line. The project represents a capital investment of $23.6 million and is expected to create 13 jobs at a qualifying wage of $21.40 per hour. The board awarded tax benefits through the HQJ program.
Award recommendations for these funds are made by the EIA Review Committee to the IEDA Board for approval.