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IEDA Board approves assistance for six Iowa companies

June 22, 2022

The Iowa Economic Development Authority (IEDA) Board has 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.

The 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.

Here are the six projects that receivd awards.

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.

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.

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.

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IEDA Board approves assistance for six Iowa companies | Clay & Milk
A central Iowa ag-tech accelerator has secured more backers and finally has a name. The Greater Des Moines Partnership first announced the accelerator last year, naming four initial investors. On Monday, the Partnership said the program will be called the "Iowa AgriTech Accelerator" and named three new investors. The new investors include Grinnell Mutual, Kent Corp. and Sukup Manufacturing, all Iowa companies. They join investors Deere & Co., Peoples Co., Farmers Mutual Hail Insurance Co. and DuPont Pioneer. Each investor has agreed to put up $100,000 for the first year of the accelerator. Startups entering the program will receive $40,000 in seed funding in exchange for 6 percent equity. Tej Dhawan, an angel investor and local startup mentor, is serving as interim director until the AgriTech Accelerator names a permanent leader. Dhawan held a similar role with the GIA before Brian Hemesath was named as managing director. As interim director, Dhawan said his main job includes hiring the accelerator's executive director, establishing a business structure and initial recruiting for the first cohort. The accelerator will place few filters, such as location and product, on the applicant pool, Dhawan said. "When you’re seeking innovation, innovation can come from every corner of the world so why restrict ourselves," he said. One area the the AgriTech Accelerator won't recruit from is biotech. For its first cohort, the AgriTech Accelerator will work out of the GIA's space in Des Moines' East Village, Dhawan said. A future, permanent home is still to be decided. The accelerator's program will host startups from mid-July through mid-October, ending with an event connected to the annual World Food Prize. The GIA, which the AgriTech Accelerator is based on, also ends with presentations at an industry event. The accelerator has also started lining up a mentor pool. The Iowa Corn Growers Association, Iowa Soybean Association and the Iowa Pork Producers Association have agreed to provide mentors, as has Iowa State University. While the AgriTech Accelerator is loosely based off of the GIA, it will differ in its business structure, Dhawan said. The GIA runs through a for-profit model for both operations and its investment fund. The AgriTech Accelerator will have a nonprofit model for its operations and a for-profit setup for its fund. Dhawan said the nonprofit model is being used so the accelerator can better work with other nonprofit partners, such as trade associations. "These are all organizations that are nonprofits and can be amazing stakeholders without ever having to be investors in the accelerator," he said. "It becomes easier to work with trade associations in their nonprofit role when we are also a nonprofit." When it's up and running, the AgriTech Accelerator would be one of a handful of ag-focused startup development programs in Iowa. Others include the Ag Startup Engine out of Iowa State University and the Rural Ventures Alliance from Iowa MicroLoan. Matthew Patane is the managing editor and co-founder of Clay & Milk. Send him an email at mpatane@clayandmilk.com.
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