Iowa Governor Culver Announces Action to Generate Jobs, Support Businesses

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New projects approved by Economic Development Board

September 17, 2009 -- DES MOINES – Iowa Governor Chet Culver has hailed new initiatives to strengthen Iowa’s economy by developing new job opportunities and entrepreneurial innovations across the state. The Economic Development Board and Iowa Department of Economic Development approved multiple initiatives today with wide-ranging impact on the state’s economy. Businesses are planning more than $26 million in new capital investments, creating and retaining 336 jobs. In addition, five companies are bringing innovative products to market; others are developing skilled workers.

“It is no secret that Iowa is a great state for people to pursue careers and for businesses to be competitive in the world economy,” said Governor Culver. “We are excited to play a key role in leveraging the future success of existing and new enterprises with the actions taken today.”

Director Mike Tramontina of the Iowa Department of Economic Development added: “We are gratified to be making effective use of the Grow Iowa Values Fund to invigorate Iowa's economy. Our team effort with businesses, regional and local development groups, and other partners is positioning Iowa for a strong future.”

Converting West Union plant to food processing
Custom Poultry Processing plans to buy the former Atwood plant in West Union and convert it into a modern USDA poultry harvesting, processing and packaging facility. The new company is comprised of Duane Bushman, Stacy Bushman, Chad Bushman, and Greg DeWeese and their spouses. The Economic Development Board awarded the new company $350,000 from the value-added agricultural component of the Grow Iowa Values Financial Assistance Program (GIVFAP) and Enterprise Zone tax benefits. At full capacity, Custom Poultry will process more than 14 million chickens per year and employ 126 people, targeting specialty market segments with both private label processing and its own brand.

Manufacturing coming to Bloomfield
An existing shell building is the key to Bloomfield's success in attracting a new manufacturer from Illinois with plans to invest nearly $1.3 million to finish the 22,500 sq. ft. building and create 13 new jobs fabricating refrigeration equipment. H.A. Phillips & Co. proposes to move the welded products department from South Elgin, Illinois to the southern Iowa building. To assist in recruiting the new industry, the Economic Development Board today awarded $50,000 from the Grow Iowa Values Financial Assistance Program (GIVFAP) tied to 11 of the new jobs in Bloomfield. The company expects to begin operations next March and be in full operation by the end of June. H.A. Phillips needs additional manufacturing capacity to meet customer delivery dates for industrial refrigeration products sold worldwide.

New insurance jobs in West Des Moines
Midland National Life Insurance Company is considering leasing larger offices to expand in West Des Moines, creating 86 jobs. The Economic Development Board awarded the company $125,000 from the Grow Iowa Values Financial Assistance Program (GIVFAP) and tax benefits from the High Quality Job Program (HQJP) for 25 of the new jobs. Midland National Life would remodel, furnish and provide technology updates to the new facility, making a capital investment of $4.3 million and expecting to move there early in 2010. Midland National is privately held and has operations in West Des Moines, Sioux Falls, Chicago and Fargo.

Consolidation saves jobs in Mount Pleasant
Hearth & Home Technologies plans to consolidate distribution centers from Illinois and Minnesota in the state of Iowa, creating 7 jobs and retaining 141 jobs at the Mount Pleasant facility. The Economic Development Board today awarded the consolidation $445,000 from the Grow Iowa Values Financial Assistance Program (GIVFAP). The City of Mount Pleasant, Henry County, and the Mount Pleasant Area Development Commission are contributing another $88,000 to the project. Hearth & Home is the nation’s leading manufacturer of fireplaces and stoves. The Heatilator brand is manufactured at the Mount Pleasant facility.

Upgrading Heinz plant in Muscatine
Nearly $14 million would be invested to upgrade the manufacturing campus in Muscatine where H. J. Heinz sauces, mustard and ketchup are produced. The project involves replacement of equipment used on the gravy line and demolishing and reconstructing one building to maintain the competitiveness of the plant. The Economic Development Board approved the renovations for Enterprise Zone tax benefits. The project would retain 66 jobs. Over 470 people are employed at the facility in Muscatine where the company first opened a plant in 1893.

Bettendorf success in robotics
Vizient LLC is planning a nearly $1 million expansion in Bettendorf to accommodate growth in robotic integration, design and manufacture of industrial automation equipment. The Economic Development Board today approved $70,000 from the Grow Iowa Values Financial Assistance Program (GIVFAP) and tax benefits from the High Quality Job Program (HQJP) for Vizient to create 15 jobs and retain six jobs as part of the expansion. Vizient expects the project, which adds 4,400 sq. ft. of design and R&D offices and results in additional production space, to be completed in March of next year.

New brew in northeast Iowa
Hub City Brewing Company wants to move into regional markets and increase production at its micro-brewery in Stanley, which is located in Fayette County. The nine-month project would expand the marketing of Hub City beer to consumers in Iowa, Illinois, Minnesota, Missouri and Wisconsin through additional wholesale distributors and retail stores. The Economic Development Board awarded Hub City $115,000 from the Entrepreneurial Component of the Grow Iowa Values Financial Assistance Program (GIVFAP).

Business recovery aid for Cedar Rapids
Using the new Disaster Recovery Component of the Grow Iowa Values Financial Assistance Program (GIVFAP), the Economic Development Board came to the aid of a Cedar Rapids company recovering from the 2008 flood. Accent Media of Cedar Rapids was awarded $5,000 toward the costs of salvaging and restoring master tapes damaged by the flood, retaining one job. At the request of the city of Cedar Rapids, the board approved a waiver from some requirements of the program.

Five companies inventing new products
Supporting new vitality in the economy, the Economic Development Board approved Iowa Demonstration Fund awards to five companies with innovative new products. The Iowa Demonstration Fund assists entrepreneurial companies with the costs of commercializing new products. The awards recommended by the Technology and Commercialization Committee are:

* $75,000 to Visual Medical Solutions (VMS) of Ames for final development and initial marketing of a surgical planning or teaching tool. The product turns medical scans into 3D virtual reality images.

* $75,000 to eDossea, Inc. of Ankeny to introduce a web system that allows dentists share digital health records with patients, other dentists, and insurance companies.

* $75,000 to TFI Lighting Products of Carroll to transform an existing product into a charging station for electric hybrid vehicles that could be deployed for retail use.

* $28,187 to Repel Holdings Inc. of Marion to introduce a garden product that repels rabbits and deer from nibbling plants.

* $150,000 to Energy Control Technologies of West Des Moines to complete preparation of a process efficiency system for the biofuels, manufacturing, oil and gas industries.

Preparing Iowans for better jobs
To help Iowans get jobs in advanced manufacturing, bioscience, and information technology industries, the Innovation and Commercialization Division is recommending the Director’s approval of $99,200 from the Targeted Industries Internship Program to hire 32 interns at 13 companies and $3,806 for Information Technology training of existing employees at three other companies.

Hiring the interns are: Renewable Energy Group, Ames; DISTek Integration, Inc., Cedar Falls; Security Coverage Inc., Cedar Rapids; VentureNet Iowa, Des Moines; Source Allies, Inc., Des Moines; Dubuque Data Services, Dubuque; McClure Engineering, Ft. Dodge; Oystar Packaging Technologies, Iowa City; Carver Pump Co., Muscatine; Thombert, Inc., Newton; MEDTEC Inc. (CIVCO Medical Solutions), Orange City; ISGN Solutions, Inc., Waukee; and TDS Automation, Waverly.

Information Technology Training applications recommended for approval this month will train one employee each at Clipper Turbine Works, Cedar Rapids and Alliance Technologies, Des Moines; two employees at Circle Computer Technologies, Des Moines.

Source: Iowa Governor