DES MOINES, Iowa (AP) -- Two Iowa companies were given state money Friday to help them relocate corporate headquarters to other Iowa communities.
In both cases, the Iowa Economic Development Authority board approved loans that the companies won't have to repay if the projects are completed as promised.
Jacobson Companies — a Des Moines-based company that provides warehouses, freight management, and transportation services — received approval for a $250,000 forgivable loan to move its corporate offices to Clive, a western Des Moines suburb. IEDA documents showed the company also had considered locations in Chicago.
The project is estimated to cost $2.3 million and create 10 jobs. The city of Clive will kick in $60,000. IEDA Director Debi Durham said Jacobson plans to keep its transportation facility in Des Moines.
The board also approved funding for Rembrandt Enterprises to move its corporate headquarters and research and development operations from Okoboji in northern Iowa to a former bank building in nearby Spirit Lake. It had considered locations in Minnesota, board documents said.
Rembrandt, an egg processor, received a forgivable loan of $105,000, a no-interest five-year loan of $105,000, and $210,000 in tax credits. The company promises to create 22 new jobs.
The IEDA works to make sure any differences are worked out if a company moves operations from one city to another within the state, Durham said.
"We work through all that before it comes to our board," she said in an interview.
Sen. Joe Bolkcom, a Democrat from Iowa City, disagrees with providing money to help companies move within the state.
"Companies are free to move wherever they want, but we should not be using taxpayer subsidies to move a business from one community to another," he said.
Three other projects approved for funding include:
— ELPLAST America Inc., which makes press-to-close zippers for packaging used by food, pharmaceutical and other manufacturers, wants to build a 30,000-square-foot factory in Marion. The board approved state tax credits of $41,050 and a sales tax refund of $107,400. The city of Marion has approved $400,000 in property tax incentives.
— Fisher Controls International and its parent corporation, Emerson Electric Co., will receive tax credits worth $88,770 to start a research and development project to explore adding 3D printing facilities.
— Jackson Recovery Centers of Sioux City received tax credits of $206,213 to build a new child and adolescent recovery hospital. The company, which will add 25 jobs, also will get $190,000 in incentives from Sioux City.
- corporate headquarters