The Iowa Premium beef processing plant located in Tama, Iowa. – News Chronicle File Photo

The biggest project in the state of Iowa is now on hold as the expansion of the Iowa Premium beef processing plant in Tama County came to a halt recently due to high construction costs. This is a huge disappointment due to the plant’s promised increase in jobs and revenue – providing a major economic boost to the area.

In late 2021, Iowa Premium received over $14 million in state and local tax incentives for the expansion with the new facility slated to open in late 2024.

Construction could now be held back from six months to two years*, surmised Toledo’s mayor Brian Sokol, who spoke during a Tama-Toledo Chamber of Commerce meeting on Thursday, June 9. Funds for the expansion are reportedly being diverted into renovating and improving current facilities at the plant while the expansion is put on hold.

“This is a big blow to the community,” Sokol said.

Iowa Premium is already the area’s largest employer, and, according to Iowa Economic Development Authority (IEDA) application documents, Iowa Premium’s expansion in Tama was expected to create 396 full-time jobs in addition to its current workforce that numbers 769 full-time employees.

With the massive addition in jobs that the expansion was going to bring, new housing construction was expected to follow in order to keep up with the increase in workforce which will also presumably be put on hold.

Representatives with Iowa Premium declined to comment for this article.

*Editor’s note: This story has been updated to reflect the conversational style of Mayor Sokol’s comments during the June 9 Chamber of Commerce meeting.