Economic Development Board approves awards to support three established and four start-up companies in Iowa
September 21, 2018 (DES MOINES, IA) – Today, the Iowa Economic Development Authority (IEDA) Board awarded direct financial assistance and tax benefits to three companies for job creation and expansion projects. These awards will assist in the creation of 290 jobs and will result in over $182 million in new capital investment for the state. The board also approved innovation funding for four startups.
The board approved assistance for planned or proposed projects located in Ames, Nevada, Story City, Ottumwa and Des Moines.
3M Company receives assistance for Ames renovation project
3M is a diversified technology company that uses science to improve lives and solve problems. The company has a global presence with markets in the following business sectors: industrial, safety and graphics, electronics and energy, health care and consumer. This project includes preparation and utilization of approximately 30,000 square feet of existing available floor space at its Ames facility and the purchase and installation of manufacturing equipment. The board awarded 3M tax benefits for this project from the High Quality Jobs (HQJ) program. This $27.8 million capital investment is expected to create 16 jobs incented at a qualifying wage of $26.11 per hour.
Hormel proposes $150 million expansion of its Burke Marketing Corporation facility in Nevada
Burke Marketing Corp., a subsidiary of Hormel Foods Corporation, a global branded food company, manufactures fully cooked meat products. The Burke facility project would add 200,000 square feet to its Nevada location to accommodate increased production. The board awarded the company tax benefits via HQJ for this proposed $150 million capital investment. The project is expected to create approximately 210 jobs, of which 52 are incented at a qualifying hourly wage of $24.95.
Story City manufacturer to expand facility and introduce new product lines
Founded in 1938, M.H. Eby is an industry leader in manufacturing aluminum truck bodies and livestock haulers. EBY plans to expand its existing facility in Story City by doubling workspace and purchasing additional equipment. This expansion will not only allow for the growth of existing lines, but position EBY to introduce additional product lines into the facility. The board awarded EBY $176,000 in direct financial assistance, as well as tax benefits from HQJ for this $4.7 million capital investment. The project is expected to create 64 jobs, of which 22 are incented at a qualifying hourly wage of $26.11.
Awards made to four startups
Founded in Australia and now with global headquarters in Ames, automed has developed an automatic medication delivery system for livestock. The automed system calculates the optimal medication for each animal, administers the dose and automatically records the data. It is a traceable, tamper-proof way of auditing the drugs given to all animals from birth to the slaughterhouse. The company was awarded a $300,000 loan from the Innovation Acceleration Fund. automed will use these funds for product refinement and to ramp up operations by hiring key personnel and increasing production and distribution.
Ottumwa-based IAM AGTECH, LLC was formed in 2016 and developed a prototyping and manufacturing facility from scratch at the Regional Entrepreneurship Center. IAM AGTECH developed an in-line monitoring system for food processors that efficiently samples and tests for quality. The company was awarded a $100,000 Demonstration Fund loan, primarily for product refinement and key personnel.
Based in Ames, Nebullam LLC is a comprehensive technology provider to new and expanding indoor farmers for leafy green, microgreen, herb and pharmaceutical plant production. For Nebullam’s software to maintain automation of growing tasks while increasing crop yields, technology refinement must occur within the company’s machine vision applications. The company received a $100,000 Demonstration Fund loan for product refinement.
Pitchly, Inc. is a Des Moines-based company that developed a software-as-a-service application used by law firms, banks and accounting firms to store proprietary information about the advice and outcome of client services performed by their firm. Customers use Pitchly’s Experience Database to research past client services and formulate future client advice. The company received a $100,000 Demonstration Fund loan for hiring key personnel, market planning and market entry activities.
The Demonstration Fund provides financial and technical assistance to encourage high-technology prototype and concept development activities that have a clear potential to lead to commercially viable products or services within a reasonable period. The primary purpose of the fund is to help businesses with high-growth potential reach a position where they can attract later-stage, private-sector funding.
The Iowa Innovation Acceleration Fund promotes the formation and growth of businesses that engage in the transfer of technology into competitive, profitable companies that create high-paying jobs. The funds are designed to support commercializing research, launching new startups and accelerating private investment and industrial expansion efforts that result in significant capital investment.
Award recommendations for these funds are made by the Technology Commercialization Committee to the IEDA Board for approval.
For more information contact:
Jacque Matsen, Iowa Economic Development Authority