Iowa Fertilizer plant seeks additional $21.5 million
A $1.9 billion fertilizer plant under construction in southeast Iowa is seeking to raise the amount of tax credits it's receiving from the state.
Iowa Fertilizer Co. is asking the state for an additional $21.5 million in incentives. The request comes as the company raises its investment in the Lee County plant to $1.9 billion.
The company is also requesting an additional sales and use tax refund of $3.5 million.
The Iowa Economic Development Authority Board will consider the request Friday.
If approved, it would raise the total amount of tax benefits the state has provided to Iowa Fertilizer to $107.5 million, according to board documents. That's on top of about $1.6 million in loans previously awarded.
Iowa Fertilizer has to pledge to create an additional 11 jobs, bringing its total job obligation to the state to 180 for the project.
Located near Wever, the fertilizer plant is one of the largest economic development projects in Iowa's history.
State officials like Gov. Terry Branstad have hailed the project as a boon for Lee County, which has historically had one of the higher unemployment rates in Iowa.
Critics, however, have argued the state overpaid the company to locate in Iowa.
The project has already received about $545 million in financial incentives from local, state and federal officials, not counting Friday's request.
The project has also come under fire recently after more than 1,100 construction workers were laid off due to a conflict with a contractor.
Iowa Fertilizer is a subsidiary of Netherlands-based OCI N.V. The fertilizer plant is expected to be complete later this year.
Pella Corp. looks to expand
The Iowa Economic Development Authority Board will also hear requests from six companies looking to expand in the state.
Pella Corp., the window-and-door manufacturer, is looking to expand its production line in Pella, an investment of about $8.6 million. The company is requesting a $152,000 forgivable loan and more than $78,000 in tax incentives.
Ice cream cone maker BoDeans Cone Co. plans to build an about 68,000-square-foot warehouse in Le Mars. BoDeans is asking for $200,000 in tax credits for a $4.6 million project.
Quality Refrigerated Services, a cold storage company, will ask the board for $83,770 in tax credits. The business plans to build a $4.4 million, 30,000-square-foot building in Spencer, which will have coolers, freezers and a loading dock.
Ralcorp Holdings, a subsidiary of ConAgra Foods, plans to upgrade its packaging system in Cedar Rapids. The company is requesting $480,000 in tax credits for the $10 million project.
Insurance firm United Fire & Casualty plans to renovate its 10-story building in Cedar Rapids. United Fire is seeking just under $2 million in tax credits for the $28.4 million project.
Lastly, Ventech Solutions is seeking $500,000 in loans from the board. The Ohio-based consulting firm plans to lease a 24,000-square-foot office in Urbandale, an investment of $2.95 million.
Reinvestment District updates
Plans for development districts from five Iowa cities are also on the docket for Friday's meeting.
The board will consider Reinvestment District funding requests from Coralville, Grinnell, Mason City, Sioux City and Davenport.
Combined, the five cities are looking for $65.5 million in funding. The state only has about $41.5 million to hand out.