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IPB to put $48 million in Tama packing plant

April 23, 2014
Iowa Economic Development Authority and The Chronicle , Toledo Chronicle, Tama News-Herald

DES MOINES The Iowa Economic Development Authority (IEDA) board has awarded direct financial assistance and tax benefits to six companies for job creation and expansion projects. The awards will assist in the creation of 327 jobs and will result in over $1.189 billion in new capital investment for the state.

The board approved assistance for planned or proposed projects located in Tama, West Des Moines, Urbandale, Ankeny and Sioux City.

Tax credits of $4 million for a High Quality Jobs Program was sought by Iowa Premium Beef (IPB).

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IPB, Tama, is a start-up premium beef processing company that plans to operate a beef harvest and fabrication facility that will produce boxed beef, trim and other products for foodservice, retail and international customers. The proposed project includes updating the current facility in Tama into a state-of-the-art beef production facility that is expected to have total employment of at least 600 when at full production. The company was awarded tax benefits for this $48 million capital investment that is set to create 120 incented jobs.

According the project budget, a total of $29.8 million is planned for building construction, $9 million for building remodeling and $8.7 million for machinery and equipment purchase.

Sysco Holdings is loaning $22.5 million for the project and Sysco / TBI Capital is adding another $13.7 million. Iowa Premium Beef is listed as the source of $11.4 million in cash and equity and Iowa State bank is making a $1 million loan.

The IPB?plant site has been closed since 2004 and last operated as Iowa Quaily Beef.



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