UPDATED FOR WEB - As plans continue to take shape for reopening the former Tama Pack, a major boost to the effort was announced Thursday, March 21, with $20 million in federal new market tax credits awarded to the venture.
New Hampton banker John Rigler, president of the Iowa Community Development which made the award told The Chronicle on Friday, "Tama is lucky (in at least one way) to qualify as a low income community."
According to the Community Development Financial Institutions Fund (the CDFI Fund) the tax credits work as an incentive to "enable them to attract investment from the private-sector and reinvest these amounts in low-income communities." The CDFI?is a division of the U.S. Treasury.
A news release said, in part, "Iowa Premium Beef is extremely excited to receive an allocation of New Market Tax Credits from Iowa Community Development. These credits will serve as a critical piece of our capital structure allowing us to move forward with a project that will create hundreds of jobs in Iowa and provide Iowa's cattle producers a local market for their product," said Steve Armstrong, President of Iowa Premium Beef.
The news release says 950 jobs will be created and a total of $87 million is being invested in the project in Tama.
In addition to the Tama project, ICD is providing $18 million in tax credits to Novelty Ironworks located in Dubuque which it says will ultimately result in the job creation of 175 to 200 positions.
The news release wnet on to say Dan Robeson, President of Iowa Business Growth Company has been responsible for administering the tax credit program for ICD. Robeson said, "Both of these projects are not only significant to their communities, but also to the vitality of the state of Iowa. One project brings back to life a beef processing plant that will impact employment and agriculture throughout Iowa, the other will bring back to life a vacant and decaying historic building providing jobs and housing to the community while saving a piece of Iowa's rich history."
"We are pleased to assist with these very significant projects in Iowa helping and employing Iowans. These tax credit investments are in addition to 14 previous awards totaling $134million. The efforts of Iowa Community Development have materially helped Iowans during difficult economic times," said Rigler.
Rigler told The Chronicle the ICD?had assisted the Marshalltown pork processing plant known as Swift at the time.