For more information, contact:

Tina Hoffman, Iowa Economic Development Authority

Phone: 515.725.3150 or Cell: 515.783.8225

communications@iowa.gov

Economic Development Board Announces Largest Capital Investment in History of Iowa

February 17, 2012 (DES MOINES, IA) – The Iowa Economic Development Authority (IEDA) board today awarded financial assistance to four companies for job creation and expansion projects.  Today’s awards will assist in the creation of 254 new jobs, retention of three jobs and will account for $1.3 billion of new capital investment to the state.

“I am very excited to announce that with action today from the Iowa Economic Development Board, Iowa is one step closer to landing the largest capital investment project in the history of the state of Iowa,” said Governor Terry Branstad.

“In addition to the significant investment Iowa Fertilizer Company’s proposed project would make in southeast Iowa, it will also bring good, high-paying jobs to an area of our state that has had its share of challenges,” said Lt. Gov. Kim Reynolds.

Iowa Fertilizer Company is a subsidiary of Orascom Construction Industries, which is one of the world’s largest fertilizer producers.  The IEDA Board approved direct financial assistance as well as tax incentives for a proposed project to build a new large-scale fertilizer plant in Wever, located in Lee County.  The company is also expected to receive local financial assistance from Lee County and the IDOT board will consider infrastructure assistance.  The new plant would supply needed ammonia and other nitrogen fertilizers to farmers in Iowa and the Midwest.  The project represents an investment in excess of $1 billion and is expected to create 165 permanent jobs.

In addition to the permanent jobs the project would create, approximately 1,500-2,000 construction-related jobs would also be expected.  Debi Durham, director of the Iowa Economic Development Authority, said, “Iowa Fertilizer Company’s proposed project could have a huge impact for our entire state that will benefit us for years to come.  Economic development takes many forms but is best achieved when the assets of the location align perfectly with the strengths of the company making the investment.” She continued, “That is exactly why it is essential we have the right tools to continue to compete for global projects of this magnitude.”

The board also approved assistance for planned or proposed projects located in Cedar Falls, Riverdale, and Burlington.

Cedar Falls web strategy company expanding operations

Tactical 8 Technologies LLC (d/b/a T8 Webware), a financial web strategy and personalized services firm, was awarded $45,000 in direct assistance to expand their Cedar Falls facility to develop and implement new products.   The company, based out of Cedar Falls, is a provider of custom mobile applications, personalized payment card services and websites to financial institutions.  The project is expected to create 15 new jobs and represents a $75,000 capital investment.

Schebler continues to innovate

The Riverdale-based Schebler Company, a leading specialty manufacturer that provides industrial chimney systems, specialty fabrication services, residential and commercial heating/cooling solutions and food manufacturing equipment, was awarded tax benefits through the High Quality Jobs Program.  The company proposes to purchase a fully-automatic fabrication system to roll and laser-weld their chimney products that will allow the company to capture additional business from new products, grow their market share of historical products and ultimately enhance overall efficiency and expand capacity.  The $1.5 million capital investment is expected to create three new jobs and retain three jobs.

Burlington manufacturer proposes $25.8 million project

The board awarded Winegard Company tax benefits through the Enterprise Zone program.  The Burlington company is a leading manufacturer of TV reception products and has outgrown its current facility.  As a result, the company is considering the purchase and redevelopment of the Fairway Shopping Center for additional manufacturing and warehouse capacity.  The additional capacity will also allow the company to increase market share and provide better process efficiencies.  This project is expected to create 71 new jobs.

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Here’s the latest from the Associated Press:

A big jump in a monthly survey index suggests more economic growth is ahead for nine Midwest and Plains states.

The Business Conditions Index rose to 55.9 in January, compared with 50.0 in December.

Creighton University economist Ernie Goss says the December report suggested the region’s economy was slowing down because of debt concerns in Europe and the lukewarm U.S. economy. But he says it appears now that December’s “tepid reading was due to seasonal or nonrecurring factors.”

The survey uses a collection of indexes ranging from zero to 100. Goss says that any score above 50 suggests growth while a score below 50 suggests decline for that factor.

The survey of supply managers covers Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota.

With stops in Mason City, Waterloo, Cedar Rapids, Davenport and Des Moines, House Minority Leader Kevin McCarthy and Senate Majority Leader Mike Gronstal laid out the Democratic agenda for the 2012 session to include helping middle class families, cutting commercial property taxes, passing education reform, reforming Iowa’s mental health system, and establishing other budget priorities for the next year.

“Democrats will work to make more progress on good-paying jobs this year.  Our job creation plan will reduce taxes for small businesses and reform our schools to ensure that Iowa students are prepared for the jobs of the future,” said Senate Majority Leader Mike Gronstal of Council Bluffs.  “While Iowa’s economy gains steam, we will do all we can to speed up the recovery and put Iowans back to work.”

“Iowans are tired of the partisan bickering and political games.  Democrats are going to work to find common ground on the issues that affect the lives of everyday Iowans,” added House Democratic Leader Kevin McCarthy of Des Moines.

“We will listen to Iowans and act responsibly to keep the state’s fiscal house in order,” added Gronstal.  “If Republicans join us in working together and bargaining in good faith, I’m confident the 2012 session will be a success.”

“Middle class families have been hit hard during the national recession and Democrats will work to make sure that Iowans who work hard and play by the rules get a boost.  We will also help Iowa small businesses expand and grow while continuing to keep Iowa a world leader in renewable energy,” concluded McCarthy.

The 2012 session of the Iowa Legislature convenes on Monday, January 9th at 10 am.

Teresa Wahlert, director of Iowa Workforce Development said, “The large drop in the November unemployment rate, along with an increase in total employment and further expansion in manufacturing, seems to confirm that the recovery has stepped up a notch.”

The monthly jobless rate had been 6 percent for seven months of the first 11 months of 2011. On the other months, it had been at 6.1 percent.

“After working together across party lines last session to make sure Iowans who need help finding a job could get it, I’m pleased the court overturned Governor Branstad’s veto which shut down 36 workforce centers, including the one in Iowa City,” said Rep. Dave Jacoby, D-Coralville, who was a plaintiff in the lawsuit challenging the veto.

“In tough economic times when too many Iowans are out of work, the Governor made the wrong decision to make it more difficult for them to find a job. Many Iowans need help learning new skills to land a good-paying job and small businesses in communities across Iowa rely on these centers to find Iowa workers,” added Rep. Kirsten Running-Marquardt, who also joined the lawsuit. “It’s time to work together to strengthen our economy and help the middle class.”

During the 2011 legislative session, Republicans and Democrats in the Legislature worked together to ensure Workforce Development field offices were adequately funded and language was included in Senate File 517 directing Iowa Workforce Development to keep their current offices open. Governor Branstad ignored the bi-partisan work of the Legislature and vetoed funding for the centers and requirements that they remain open. After a lawsuit was filed challenging the veto in Polk County District Court, a judge today overturned the Governor’s veto and ruled it unconstitutional.  State Rep. Bruce Hunter, D-Des Moines, also joined the suit.

Iowa was also touted for having an exceptionally low unemployment rate and the highest credit rating available,which is an example of it’s healthy economy.

The 24/7 Wall St. Best and Worst Run States is an analysis that focused on  each state’s financial health based on factors including credit score and debt, how a state uses its resources to provide its residents with high living standards, reviewing dimensions such as health insurance, employment rate, and low crime and a good education.

Iowa was ranked behind, Wyoming, Nebraska, North Dakota and Minnesota.

The Manufacturing and Logistics National Report which is prepared by Ball State University grades the U.S.’s 50 states in several areas of the economy that  are successful in manufacturing.

Other areas were graded including manufacturing and logistics health, human capital, the cost of benefits, the global reach and diversification of the industries, state-level productivity and innovation, the tax climate, and venture capital activities.

To read more go to: http://cber.iweb.bsu.edu/research/conexus11/

“As state legislatures become more urban and inclusive of more minority groups, it is time to create an environment for interactive problem-solving and the exchange of ideas.  We can’t afford to continue the same urban vs. rural debate any longer, policy makers on both sides need to have an opportunity to reach outside their traditional audience and collaborate on solutions to mutual concerns,” said Miller.

Miller said the purpose of the Urban-Ag Academy is to bring urban and minority leaders and policy makers together; inform an ever-increasing number of urban legislators on ag issues; educate non-rural legislators on the often unseen effects on and potential benefits to their districts; and lay the groundwork for a national conference for non-rural policy makers nationwide.

“Both rural and urban districts stand to reap enormous benefits from increased understanding of the benefits of agriculture to urban economies and the issues faced by rural constituencies,” added Miller.

The Urban-Ag Academy will be held on Saturday, November 12 from 9-4pm in Ankeny.  Participants in the Academy include ISU’s Dr. Michael Duffy, ISU Professor Mark Edelman, Sandy Ehrig from the Iowa Farm Bureau, Dr. Don Heck from Iowa Central Community College’s Biofuel Lab, and officials from the Iowa Dept. of Agriculture and US Dept. of Agriculture.

“Rep. Hall is committed to creating new opportunities and bringing good-paying jobs to Sioux City and across our state.  Working with the head of the new Economic Development Authority Debi Durham, Hall will make sure Sioux City is well served in the state’s job creation efforts next year,” said House Democratic Leader Kevin McCarthy.

“Chris has a reputation for working across party lines and advocating for our community in Des Moines. This is a positive step for Sioux City,” said Dave Bernstein, a Sioux City businessman who is Vice Chair of the Iowa Economic Development Authority Board.

In addition to serving as Ranking Member, Hall will also serve on Appropriations, Economic Growth & Rebuild Iowa, Natural Resources and Transportation committees.

“Growing our economy and putting Iowans back to work is my top priority and I’m proud to be chosen to help lead the Economic Development Appropriations Committee.  I look forward to working with my colleagues on both sides of the aisle to move our state forward,” said Hall.

The 2012 legislative session starts on January 9^th.

Republicans in the Iowa Legislature have refused to help unemployed Iowans and struggling communities.  Democrats asked Republicans earlier this month to help request a special session to override Governor Branstad’s line-item veto of legislation prohibiting the closure of local Iowa Workforce Offices.  While all Democrats have signed the letter, not a single Republican in the House or Senate acted to keep the workforce offices open.

“The Legislature worked together to keep our local workforce offices open and it’s extremely disappointing that Republicans have refused to help Iowans,” said Senate Majority Leader Mike Gronstal. “In tough economic times, we should not be closing doors on Iowans looking for work and on small business looking to hire more workers.”

“We extended a bipartisan olive branch to the Republicans.  They took it and instead broke it over the backs of the middle class, delivering yet another blow to the 100,000 Iowans currently out of work,” said House Democratic Leader Kevin McCarthy.

Governor Branstad line-item vetoed language in Senate File 517 last month that required the state to maintain the current number of Workforce Development field offices. In his veto message, the Governor said he intends to close at least 36 Workforce Offices around the state and replace them with so-called library kiosks.

Democrats called for a special session under Article III, section 2, of the Constitution of the State of Iowa provides that members of the legislature may convene a special session if two-thirds of each house signs a petition. A veto override also requires support from two-thirds of each chamber.  However, no Republicans returned the letter calling for a special session so the petition did not reach the two-thirds required in both chambers.

“Republicans turned their backs on Iowans wanting to get back to work and small communities with high unemployment,” said Senator Bill Dotzler, chair of the Senate Economic Development Budget Subcommittee. “Visiting a web site at the local library won’t help workers get training or connect businesses with the skilled workers they need.”

“This is the place where Iowans who want to go back to work or get the training they need to land a good-paying job begin their search and where local businesses can find skilled Iowans who fit their needs,” said Representative Kirsten Running-Marquardt, ranking member of the House Economic Development Budget Subcommittee.  “This Republican plan is especially a slap in the face for rural Iowans who are trying to access employers and redevelop their skills.”

A table of the Workforce Offices that will close due to Republicans and Governor Branstad is below.

Note: July unemployment numbers are not yet available.